IIPM EDITORIAL: Now, that’s a healthy sheet!

However, here’s some good news for the weak-hear

ted: A majority of pundits are of the opinion that interest rates might have peaked, but mind you, so have the profitability of the Indian companies. The FY07 performance of companies listed in India appears good considering the fact that consumerism (domestic demand)in India is at its life-time high, coupled with company favourable global macro-economic indicators like higher crude oil and metal prices. Results from telecom, cement, banking, automobile and metals space is a testimony to the above statement. The big three of Telecom – Bharti- Airtel, Reliance Communications and Idea Cellular rang in stupendous results. Top-line of Bharti-Airtel grew by 58% and profits almost doubled; ditto with Reliance Communications (annual profit touched Rs.24.09 billionin a short span of time). Says Harit Shah, Telecom Analyst, Angel Broking, “Financial performance of telecom majors was mainly driven by strong subscriber additions. Strong subscriber additions and usage drove the top-line growth.” Cement companies also deserve a special mention as they refused to cower down before government arm twisting, and yet surprisingly came out with a good set of numbers. In fact, the lowering of prices actually worked in favour of companies, as demand at lower price levels was quite enough (considering the explosive construction activity undergoing) to offset the price decrease. Moving on further, profitability of banks too peaked, as the appetite of mid-size companies, retail lending and Indian consumerism was at new peak last financial year.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Labels: Arindam Chaudhuri, Guru and Economist, Guru Arindam Chaudhuri, IIPM, IIPM-Article, IIPM-Delhi, IIPM-India, Management Guru, news weekly, renowned management guru, the sunday indian