India Inc’s core problem

India Inc’s numbers for the December 2011 quarter weren’t expected to be anything more than mediocre; in reality, they’re turning out to be a little less than ordinary. Most heavyweights have disappointed the Street, whether it is Reliance Industries, Maruti Suzuki or JSW Steel, and smaller firms haven’t fared any better. And the management commentary isn’t always comforting; whether it is Infosys or Bajaj Auto, the tone is circumspect. For a sample of 463 companies (excluding banks and financials), net sales have risen a reasonably good 25% but operating profit margins have crashed 400 basis points y-o-y, driving down the operating profit.

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