Base effect

Q3 headline profits look impressive but worries remain

India Inc registered strong gains in profit in the third quarter of 2019-20. While the conventional wisdom would point to the cut in corporate tax rates and low crude oil prices, a closer look at the data indicates that a lower base in the year-ago quarter had a more important role to play. An analysis of the results of 1,139 listed companies reveals a lopsided pattern. Overall, this sample registered a massive 43.9 per cent growth rate in pre-tax profit and 63.6 per cent year-on-year rise in profit after tax despite registering a mere 2.2 per cent rise in net