Rally in commodities, bonds rescues India Inc in Q3

Highest net profit growth in 8 quarters at 27.7%

The October-December 2016 quarter was bittersweet for Corporate India, with lower domestic demand going hand-in-hand with higher price realisations. The results for the quarter suggest demand shock from demonetisation was more than compensated by gains from higher commodity prices and treasury gains from a bond rally in the domestic market.

The combined net profit (adjusted for exceptional gains and losses) of 1,660 companies across sectors was up 27.7 per cent on a year-on-year (YoY) basis in the third quarter, growing at the fastest pace in at least two years. Their top line showed similar buoyancy, with combined revenues (including operating