Corporate India to clock 22.8% PAT growth this fiscal: CMIE

Corporate India to clock 22.8% PAT growth this fiscal: CMIE

Mumbai: Corporate India is likely to witness 22.8% growth in its Profit After Tax (PAT) in the current fiscal, an economic think-tank said in its report.

“Corporate sales growth will average at a meagre 4.1% in 2009-10. At the same time, PAT will rise by a robust 22.8%," the Centre for Monitoring Indian Economy (CMIE) said in its latest report on the state of the Indian economy.

The manufacturing sector (excluding petroleum sector) would report a 24.3% PAT growth mainly on account of low raw material prices and soft interest rates, CMIE said, adding that the PAT of the financial and non-financial services would rise by 32.2% and 20.4%, respectively.

According to the report, corporate India took a hit on its sales due to fall in commodity prices, drying up of export demand and postponement of purchases by the domestic consumer following the global liquidity crisis.

“From 35% in the first-half of 2008-09, India Inc’s sales growth slumped to 12.1% and 0.1% in December 2008 and March 2009 quarters, respectively," CMIE said.

However, the corporates managed to protect their profits from the impact of the global liquidity crisis as PAT rose by 16% in the March-2009 quarter and its growth further accelerated to 19.9% in the June-2009 quarter, CMIE said.