What a dismal quarter

It’s true that much of the damage to corporate bottom lines in the three months to September 2011 has been caused by the sharp depreciation of the rupee, which lost nearly 10% in a month. But it’s not just the debilitating effect of a weakening currency that has hit profits so hard; for a sample of 2,437 companies (excluding banks, NBFCs and oil marketing companies), net profits have actually crashed by some 50% y-o-y. In fact, it’s the first quarter in two years to see a fall in the profits of the Nifty 50. The adjusted net profits for the Sensex set of companies have risen 10.8% y-o-y but ex-energy they’re just flat.

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