India Inc is headed for a profit boom

 Going by first quarter corporate results, this year could see a boom in profits. Firms are reporting record growth in profits for the quarter ended June 2003.

 Indeed, the 467 companies which have reported their results so far, recorded 54.4 per cent growth in profits and 17.5 per cent rise in sales. As many as 74 firms recorded net profit growth in excess of 100 per cent. Sales of 30 companies rose by over 100 per cent.

 In absolute terms, net profit of the 467 companies increased by 54.42 per cent to Rs 3,951 crore. Their sales shot up by 17.47 per cent to Rs 56,245 crore. Their interest costs fell by 13.9 per cent to Rs 1,845 crore, while their tax provision went up by 44.71 per cent to Rs 1,435 crore.

 Of the 467 firms, 168 recorded rise in net profit margins, 51 reported turnarounds, and 34 reduced net losses during the quarter. However, 70 companies continued in the red.

 All profit margins