Corporate India net expected to grow at 24.5 %

The net profits of corporate India are expected to grow by a robust 24.5-per cent in financial year 2013 with the softening of commodity prices and steady interest rates, CMIE has said.

''The net profit margin of corporate India too is expected to inch up to 7.2 per cent from 6.8 per cent in financial year 2011-12,'' Centre for Monitoring Indian Economy (CMIE) said.

The factors that are expected to moderate the topline growth - softening of commodity prices and steady interest rates, are expected to boost  its bottomline, with a slower growth in other expenses compared to financial year 2011-12 also expected to help.

The companies are also not likely to incur forex losses in financial year 2012-13, after the rupee depreciated 9 per cent in each of the two quarters ended September, 2011 and December 2011.

Growth of the banking industry would also slow down to 16.4 per cent in financial year 2013 from 33.7 per cent in financial year 2012, due largely to stable interest rates. Interest rates had risen last year pushing the industry's income growth.

CMIE said the rest of corporate India would only see a mild deceleration in sales growth to 14.3 per cent in financial year 13 from 16.1 per cent in financial year 12.