March quarter numbers show mild capex bounce

Net fixed assets created by corporate sector expanded in the last two six-monthly periods, with capital work-in-progress also showing positive traction


These two parameters—net fixed assets and capital work-in-progress—are pointers to improving business confidence and capacity expansion by companies. Photo: Aniruddha Chowdhury/Mint
These two parameters—net fixed assets and capital work-in-progress—are pointers to improving business confidence and capacity expansion by companies. Photo: Aniruddha Chowdhury/Mint

Data on March-quarter corporate earnings compiled by the Centre for Monitoring Indian Economy, or CMIE, indicates a small rebound in capital expenditure from the bottom.

The net fixed assets created by the Indian corporate sector expanded in the last two six-monthly periods.

Capital work-in-progress (WIP) is also showing positive traction.


After contracting for nearly 24 months and hitting the abyss, the six months ended 31 March showed a 2.24% rise in WIP from the year-ago period.

Together, these two parameters are pointers of improving business confidence and capacity expansion by companies.

Nevertheless, the rebound has been from a low base, especially for WIP, and growth is still far from robust.

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