H1Corporate results affirm uptrend CMIE

[Ulhas Joglekar]

> 7 November 1999 : Results affirm uptrend: CMIE
> Results affirm uptrend: CMIE
> MUMBAI: Analysis of the first half results (H1) of over a 1,000 listed
> corporates indicated a 18 per cent rise in sales and an 8 per cent rise in
> profits, testifying the recovery of the industrial sector. "The rise in
> profits is noteworthy as they come after nearly two years of decline," the
> Centre for Monitoring Indian Economy (CMIE) has said in its November
review.
> The manufacturing sector has led in the recovery, recording a 21 per cent
> rise in sales and a 15 per cent rise in profits.
> It said growth in interest costs has declined substantially, widespread
> across companies. There was, however, an increase in depreciation
> provisioning, while tax provisions increased by 22 per cent resulting in
> profits increasing by 15 per cent.
> "Multinationals have outperformed all other ownerships groups in terms of
> the rise in profits," it observed.
> The industrial sector continued on the recovery path, with the index of
> industrial production recording a 6 per cent rise in the first five months
> of the current fiscal, which was the forecast made by CMIE for the year.
> The CMIE report pointed out that the gross fiscal deficit of the Union
> government was lower in H1 of the current fiscal against H1 of 1998-99,
> reflecting the increase in tax collections in August and September, better
> non-tax revenues and stagnant non-Plan expenditure.
> Kharif cereal crops that had been withered due to lack of moisture
> experienced some benefit from the late rains in September-October,
> especially in Tamil Nadu and Karnataka.
> In Bihar, the standing kharif paddy received the required water during the
> last phase.
> During the monsoon season, with less than normal rainfall reported in most
> areas, there was fear of a lower harvest this season.
> CMIE has estimated the rabi rice output at 12 million tonnes against 12.9
mt
> last year.(PTI)
>
> For reprint rights: Times Syndication Service
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> Bennett, Coleman & Co. Ltd. 1999.
>
>