‘Manufacturing to boost corporate India’s profits’

Improvement in performance of the manufacturing sector is expected to boost the profitability of corporate India this year, according to Centre for Monitoring Indian Economy.’We estimate net profits to have grown by a whopping 111.9 per cent in September 2012 quarter compared to the preceding quarter.’The net profit margin too is expected to have bounced back strongly to 7.4 per cent, after dropping to a 14-year low of 3.3 per cent in the June 2012 quarter,’ CMIE said in its monthly review.’We expect profitability to improve further to 7.9 per cent in the December 2012 quarter and 8.7 per cent in the March 2013 quarter,’ the economic think-tank said.The improvement in corporate profitability will be driven by the manufacturing sector, which had slipped into losses in the June 2012 quarter and had pulled down the profitability of corporate India dramatically.