December quarter results of Indian companies show little impact of demonetisation. A closer look, however, reveals a more nuanced picture
Overall corporate financial results for the December quarter, at first glance, show little impact of demonetisation. Consider these figures from the Centre For Monitoring Indian Economy (CMIE) database: net sales for companies in the non-financial sector (sample size: 3,356 companies) show a year-on-year (y-o-y) rise of 5.9%—the first positive growth since September 2014. Operating profit growth for the non-finance sector showed an increase of 21.5% from a year ago, the highest since the June 2014 quarter.