India Inc's bottom line conceals some harsh realities

On the face of it, it would appear that the corporate sector has put up a reasonably good show in the three months to September 2012. Despite the top line not growing as fast as it has in recent quarters, profits have been decent because companies have managed to protect their margins by keeping costs in check. However, the big picture hides the grim reality that capital expenditure is slowing; results for a sample of 1,200 companies show that depreciation in the September quarter has risen at the slowest pace in the last couple of years, apart from remaining virtually flat in the last three quarters.

Read Full Story>>