The Economic Survey 2016-17 tabled in Parliament on Tuesday by Union Finance Minister Arun Jaitley revealed a robust growth trend in corporate sector’s net profits during the second quarter (Q2) of 2016-17.
According to the survey, the performance of corporate sector (Reserve Bank of India, January 2017) highlighted that the growth in sales stood at 1.9 per cent in Q2 of 2016-17 as compared to near stagnant growth of 0.1 per cent in Q1 of 2016-17.
“The growth of operating profits decelerated to 5.5 per cent in Q2 of 2016-17 from 9.6 per cent in the previous quarter,” the survey pointed out.
The survey elaborated that the year-on-year growth in interest expenses remained flat in Q2 of 2016-17, as compared to 5.8 per cent in the previous quarter.
“Growth in net profits registered a remarkable growth of 16.0 per cent in Q2 of 2016-17, as compared to 11.2 per cent in Q1 of 2016-17,” the survey showed.