Order inflows during the quarter-ended September declined 31.5 per cent compared to the level a year ago. Companies are still not committing fresh capital expansion.
Capex plans for the next six months imply a 20 per cent increase in calendar 2010.
A study of 435 companies listed on the Bombay Stock Exchange, which provide their capital-employed data on a quarterly basis, shows capex grew by a meagre 3.4 per cent in the nine months ending December 2009, compared to the level in March 2009.
This year was the best since 1991, with benchmark indices rising over 100 per cent from their March lows.
Sales of 137 firms up 29.7%, but operating margins dip.
The results of quarter ended December 07 are less impressive than the corresponding quarter last fiscal. However, it is premature to conclude about the overall performance of companies.
The software sector has once again underlined its importance to the country by accounting for more than half of the total jobs created by Indian industry in the last financial year.
The lower sales growth rate is on account of single-digit growth in sales by Reliance Industries (6.3 per cent), Reliance Energy (9.53 per cent), Hero Honda (5.48 per cent) and Biocon (7.52 per cent). Companies that posted a decline in sales included two-wheeler giant Bajaj Auto (- 3.03 per cent), pharmaceutical major Ranbaxy (-4.79 per cent) and Madras Aluminium (-11.13 per cent).
India Inc's first quarter scorecard has been mixed so far. While net profit growth has shot up, the 154 companies that have declared their results have faltered on the turnover growth rate.
Rising interest rates and higher inputs costs seem to have taken the sparkle out of corporate results in Q4 2007.
The early birds have set a scorching pace in the quarter ended March 2007, with around 120 companies posting a 28.6 per cent rise in sales and a hefty 57.8 per cent rise in net profit.
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