Jet Airways profits soared in the third quarter, with net profits reaching Rs106 crore compared to a loss of Rs214 crore in the same period last year. But all isn’t well. Total income fell 4.5% to Rs2,886 crore. Jet airways profits were helped by an increase in air traffic and major cost-cutting measures.
State Bank of India reported a steady net profit for the third quarter, with virtually no increase. Net profit went up Rs2,479 crore compared to Rs2,478 crore in the same period last year. Like some other banks, SBI has been hit by a rise in yields on government bonds over the last few months, which has cut into their treasury income and as a result their profits as well.
Hero Honda has overtaken expectations again. Net profits went up 78.3% to Rs536 crore for the third quarter. And the company sold 1.1 million motorcycles and scooter during that period, an increase of 35.5% compared to last year. Hero Honda expects to sell a record four million units in the year ending March. It also says it will consider increasing capacity at its existing plants and also look at building a new plant in the new future.
Another automaker, Mahindra and Mahindra, reported mixed results. Net profits shot up to Rs414 crore in the third quarter compared to just Rs44 crore in last year. But the company warned that rising costs of commodities and a possible end to the government’s stimulus packages could damage its growth.
India’s economic growth could return to pre-crisis levels next year. The Centre for Monitoring Indian Economy expects growth to reach 9.2% in the year 2010-11. India’s GDP growth had slowed down to just 6.7% in the year 2008-09. CMIE says it expects a strong performance by the industrial sector in 2010-11 long with a robust recovery in agriculture. It also says services are also likely to do well by next year.