SMEs clocking high profits
The third quarter of 2009-10 apparently proved to be one of the turning periods in corporate India, with profits leapfrogging by almost 310 basis points. The best part being: SMEs registered a 25-fold rise in net profits.
India Inc is going great guns, not just combating the recessionary pressures, but also clocking robust growth numbers. Most of the top corporate and SMEs raked in big profits during October-December 2009. This might also mean the recession is breathing its last.
As per the industry data available, in the third quarter India Inc clocked a net profit rise of 62 percent, while SMEs posted a 25-fold increase in net profit on the back of 730 basis points.
According to a senior analyst at a equity broking firm ‘the increased sales and profit margins of corporate companies including SMEs have made industry players sit up and take notice as policy makers are buoyant about witnessing a broad-based economic recovery soon.
Corporate India clocked a surge of 310 basis points, with sectors like capital goods, consumer durables, auto, auto ancillary, chemicals and manufacturing showing positive signs of growth.
Apparently even SMEs engaged in the domain of auto components, chemicals, manufacturing and capital goods, among others received fresh orders. This led to increased earnings for small businesses.
Nonetheless, the total net profit in the third quarter of 2009-10 as around Rs 2,773 crore, as against Rs 3,394 crore recorded in corresponding period in 2007-08, reflecting a decline of 18.3%. Researchers at Edelweiss say that SMEs need to buckle up at performance front and start off initiatives to accelerate their revenues.
India Inc is going great guns, not just combating the recessionary pressures, but also clocking robust growth numbers. Most of the top corporate and SMEs raked in big profits during October-December 2009. This might also mean the recession is breathing its last.
As per the industry data available, in the third quarter India Inc clocked a net profit rise of 62 percent, while SMEs posted a 25-fold increase in net profit on the back of 730 basis points.
According to a senior analyst at a equity broking firm ‘the increased sales and profit margins of corporate companies including SMEs have made industry players sit up and take notice as policy makers are buoyant about witnessing a broad-based economic recovery soon.
Corporate India clocked a surge of 310 basis points, with sectors like capital goods, consumer durables, auto, auto ancillary, chemicals and manufacturing showing positive signs of growth.
Apparently even SMEs engaged in the domain of auto components, chemicals, manufacturing and capital goods, among others received fresh orders. This led to increased earnings for small businesses.
Nonetheless, the total net profit in the third quarter of 2009-10 as around Rs 2,773 crore, as against Rs 3,394 crore recorded in corresponding period in 2007-08, reflecting a decline of 18.3%. Researchers at Edelweiss say that SMEs need to buckle up at performance front and start off initiatives to accelerate their revenues.
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