Profits in UPA were low and the revenue was high
Heavy scoring was done by India Inc on many counts for the past decade or so, under the UPA regime, however the same cannot be said for the hard knocks it gave on the profits.
From 2003-04 until 2013-14, without banking and finance in the picture the combined revenues for fortune 500 companies listed under BSE was said to have risen nearly 7.5 times more, and the growth rate or CAGR was that of 22.2 percent recorded, says a source. However, profits is what India lacked big time.
CAGR net expansion was 19 percent while the period was on, especially on interest payments and employee costs which revenues couldn’t match up with. The salary bill of India Inc grew for CAGR at 23.6 percent over the decade, and the payments on interest expanded at 19 percent rate annually too.
It is also believed that profits would plummet furthermore, since many companies around are debt-laden, namely;
- Metals
- Energy
- Construction and infrastructure
- Automobiles to name a few, most of which haven’t declared their results yet for the fiscal 2013-14.
Revenue growth they say was across the whole board, and some stats show;
- Infotech exporters topping with 30 per cent
- Real estate with 27 per cent
- Automobiles with 25.4 per cent
- Construction and infrastructure with 25.3 per cent
- Telecom with 25 per cent
The laggards were;
- Power generation firms at 17.8 per cent
- Pharmaceuticals and agrochemicals at18.2
With the new incoming government taking charge, we can only hope the changes happen for the best.
Source: Business Standard
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