"INDIA INC'S TOP GUNS MAY POST 45% RISE IN Q3 NET" ...reads the front page of today's Economic Times.
Well, the mathematics here is simple.Last year, the quarter Oct-Dec 2008 followed the collapse of Lehmann Brothers!! It was by far one of the worst quarters for Indian Companies in recent history. The BSE 500 companies posted a Net Profit of Rs.35,000 crores. In the quarter that has gone by ie Sep 2009 the BSE 500 companies have posted a Net Profit of Rs.51,000 crores.
So even if we maintain the same figures we shall be up 45%!!! And with the October IIP numbers and the Finance Ministers revised estimates of the GDP to 8-9% in the next 2-3 years, that doesn't seem so difficult.
Fundamentals for now are pointing to a northward journey!
