Bottom line up

Corporate India has benefited significantly from cost cutting and favourable exchange rate in the quarter ended June 2009. Most com­modity prices crashed in the October 2008 to March 2009 period. However, due to higher-cost inventories, companies had not ben­efited from it fully in the previous two quarters. Companies gained from substantially lower prices of raw materials as the older higher­cost inventories got exhausted in the June 2009 quarter. Moreover, cost controls were applied on most of the cost heads including staff cost. Thus, cost increase was lower than sales increase. Benefits of lower excise duty was also not fully passed on. So even though volume growth was not significant and sales realisation also dipped in many cases, the operating profit margin (OPM) improved. Banks continued to book huge treasury gain due to lower interest rate and, at the same time, kept on restructuring bad loans to keep provisions

Corporate India in June 2009 quarter
Quarter ended TIM ended
June 2009 June 2008 Var. (%) June 2009 June 2008
Sales 541776 516996 5 2206652 1934536
OP 169840 145499 17 617295 536100
Other Income 8976 7428 21 46313 50782
PBIDT 178816 152927 17 663608 588881
Interest 82003 68845 19 328378 257781
PBDT 96813 84082 15 335230 331101
Depreciation 17346 14337 21 70077 59626
PBT 79467 69745 14 265153 271475
Tax# 20996 17118 23 49538 54961
Cash Profit 75817 66964 13 285692 276140
PAT 58471 52627 11 215615 216514
OPM (%) 31.4 28.1 28.0 27.8
PBIDTM (%) 33.0 29.6 30.1 30.4
PBDTM (%) 17.9 16.3 15.2 17.1
CPM (%) 14.0 13.0 13.0 14.3
PBT (%) 14.7 13.5 12.0 14.0
PATM (%) 10.8 102 9.8 112

Till now about 2,100 companies have declared their results for the quarter ended June 2009. They account for almost 93% of the total mar1Figures in As crore. Source: Capifaline Database to the minimum, also boosting Corporate India's aggregate profit. The rupee appreciated 6% in the June 2009 quarter compared with a 7.5% depreciation in the June 2008 quarter, benefiting aggregate profit, which remains tuned to rupee appreciation.