Bottom line up

Corporate India's sales grew 5% in the June 2009 quarter over the June 2008 quarter compared with a 14% growth in the trailing 12 months (TTM). Election-related spending and continued buoy­ancy in the rural sector supported the modest sales growth. OPM improved from 28.1 % to 31.4%, boosting operating profit (OP) 17%. Notably, this growth was higher than the 14% growth in OP achieved in TIM. Other income also increased 21 % compared with a 9% fall recorded in the TTM. Growth in profit before interest, depreciation and tax was, therefore, 17% compared with a 13% growth in the TIM. Interest cost increased 19% compared with a 27% rise in the TTM. Provision for depreciation was 21 % higher in the quarter compared with 18% higher in the TTM. Thus, profit before tax rose 14% in the quarter compared with a 2% fall in the TIM. Tax provision surged 23% compared with a 10% dip in the TTM. Cash profit was up 13% and net profit II % in the quarter. Cash profit increased 4% and net profit was flat in the TIM.
The result season began on a positive note with better-than­expected numbers from software exporters. Due to the slowdown in the global markets, the software industry was expected to post negative volume growth over the sequential quarter and could have taken a hit due to the rupee appreciation. However, most software majors managed this quarter very well and reported quarter-on­quarter growth. While the cement, FMCG, automobile and banking sectors were expected to post good results, actual results were even better than expected.
Textile-blended, textiles-silk, sugar, glass, and computers-hard­ware sector reported profit in the quarter compared with losses in the corresponding previous quarter. Industry toppers by net profit growth included cables-telephone, textiles-products, tyres, textiles­composite, tractors, refineries, auto-two wheelers, moulded lug­gage, computer-education, healthcare, PSU banks, dyes and pig­ments, plastic products, and cement-north India. Industries report­ing a massive fall in profit included hotels, steel-pig iron, textile machinery, textile-jute, compressors, chlor alkali/soda ash, ceram­ics-tiles, automobile-LCV, steel-medium/small, shipping, and cast­ings & forgings.
Among industrial groups, MNC associates reported the fast-