India INC profits dip by 16 % in first fiscal

New Delhi Aug 22: India has successfully rolled out Goods and Services Tax from July 1. The effects of the new tax regime are yet to be known. However, some data has been revealed.

* India Inc profits dipped by 15.7 per cent to Rs 87,475 crore in the first quarter of the current fiscal.

* Many companies have destocked their goods in the month of June before the implementation of the new tax regime.

* 2,108 companies profits were analyzed by credit rating agency Care Ratings

* The corporate net profits stood at about Rs 1.04 lakh crore in April-June period of 2016-17.

* Net sales of companies slowed down to 8.7 percent in the three months ended June 2017,

* A growth of 9.5 percent in sales took place in the same period year-ago.

* seven industries reported net loss,

* 33 industries reported lower growth in net profit during the quarter ended June 2017. The following sectors saw a decline in sales.
# consumer goods
# automobiles and related segments
# construction & real estate
# finance# refineries
# paper & paper products
# pesticides & agrochemicals
# hospitality
# retail

* 40 industries saw positive growth in sales in the first quarter of 2017-18.the industries are as follows
# sugar
# electronics
# passenger cars
# tractors
# capital goods
# metals
# NBFCs
# hotels
# resorts
# restaurants
# mining
# refineries
# plastic products
# industrial gases
# fuels
# textiles
# durables
# auto segment

* 9 industries witnessed negative growth in net sales such as
# pharmaceuticals and drugs
# auto trucks/LCVs
# ferrous metals
# telecom service providers