India Inc is back to profitable ways,with every three out of four blue-chip companies reporting a surge in bottom line for the June quarter. Analysis of the net profit of the top 30 Sensex firms in the April-June quarter shows that their bottom line rose,on average,36 per cent over the year-ago period,after three quarters of weak earnings. The global economic gloom notwithstanding,the Bombay Stock Exchange Sensex firms together saw their top line climb an average of eight per cent in the June quarter. "Earnings for corporate India remain meaningfully ahead well into the current reporting season . average earnings growth is mid-teens,and a good 5-10 per cent ahead of our expectations,across various aggregates," Citigroup said in its India Equity Strategy report. Companies that have reported a significant surge in June quarter profit include Jaiprakash Associates (292 per cent),Mahindra & Mahindra (152 per cent),Tata Power (144 per cent),Hero Honda (83 per cent),and cement firm ACC Ltd (79 per cent). Analysts say that even as the margins of the companies are improving,sales are poor as there is slack in demand.
