Indian companies registered double-digit growth in revenue for the eight straight quarter in December, but profits lagged due to rising input and interest costs, a study by the ET Intelligence Group shows. An analysis of 1,400 companies, excluding those in banking, finance, oil and gas, shows that aggregate revenue of the sample rose 19% year-on-year, but profits failed to match this pace. Profit before depreciation, interest, tax and other income, or PBDIT, grew only 3.5%, the slowest in nine quarters, reflecting the inability of companies to fully pass on the rising burden of input costs to users. Net profit dropped 9.7%, the second consecutive quarterly fall. Earnings had declined by 31.4% in the September quarter.
Source: Economic Times
No comments:
Post a Comment