India Inc not out of the woods

The trend in corporate results in the quarter ended September 30, 2011 (Q2, 2011-12) is grim and unequivocal. India Inc is struggling to cope with a toxic combination of high inflation, rising interest costs and unpredictable currency movements. Overall, this bids fair to be the worst quarterly corporate performance since October-December 2008. There are a few isolated outperformers. But most firms in the Business Standard database of 1,457 listed companies have not been able to maintain margins in the face of adversity. As many as 339 have reported outright losses, while another 689 have reported lower profit after tax (PAT) compared to the quarter ended September 2010 (Q2, 2010-11). Overall, PAT dropped 12 per cent for the entire sample in comparison with Q2, 2010-11.

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