India Inc will clock 23% net profit in FY10: report

New Delhi: Despite slowdown in the global economy and bad monsoon, corporate India is likely to clock 22.8% growth in net profit in 2009-10 because of the improvement in the margin due to fall in input cost, said the Centre for Monitoring Indian Economy (CMIE).      According to the CMIE report, the revenue of the companies will grow at much slower pace. The report said, "Corporate sales growth will average at a meagre 4.1% in 2009-10. At the same time, profit after tax (PAT) will rise by a robust 22.8%.'' The performance of the manufacturing sector, excluding petroleum sector, would be encouraging. The report said the sector's PAT would manage to grow at 24.3% mainly on account of low raw material prices and soft interest rates. PAT of the financial and nonfinancial services would rise by 32.2% and 20.4% respectively, the report said.      According to the report, corporate India took a hit on its sales due to the fall in commodity prices, drying up of export demand and postponement of purchases by the domestic consumer following the global liquidity crisis.      "From 35% in the first-half of 2008-09, its sales growth slumped to 12.1% and 0.1% in December 2008 and March 2009 quarters, respectively, the report said. However, the corporate houses managed to protect their profits from the impact of the global liquidity crisis as PAT rose by 16% in the March 2009 quarter and the growth further accelerated to 19.9% in the June 2009 quarter, CMIE said.