India Inc's profit to grow by 77%

Recession-hit India Inc may not have done well in terms of Profit After Tax (PAT) growth in the previous fiscal, but FY 10 could see it clocking a robust over 77 per cent growth in PAT, an economic think-tank forecast in its latest report.

"India Inc is expected to post a robust 77.9 per cent growth in PAT in 2009-10," the Centre for Monitoring Indian Economy (CMIE), said in the report.

This would be a substantial growth, considering that the December 2008 quarter witnessed a sharp 39.7 per cent decline in the same on account of a sudden and steep fall in commodity prices, poor export demand, high cost of borrowings and inventory losses incurred by a host of companies, the report said.

CMIE attributes this projected high growth to expectation that the petroleum products sector would return to profit from March 2009 quarter.

The sector had incurred losses during April-December 2008 due to under-recoveries and had eaten away more than one-third of the profits of the rest of corporate India, the report said.

"Excluding the petroleum product sector, the rest of Indian corporates are expected to report a 23.1 per cent rise in aggregate PAT in 2009-10," CMIE said.