On the road to recovery

BS1000 is also about celebrating success. An eminent jury of 7 top decision-makers, led by Maruti Suzuki Chairman R C Bhargava, selected the winners of the BS Awards for corporate excellence in 2017

Financial year 2016-17 was challenging for corporate India. The cash shortage that followed the ban on high value notes on November 8, 2016 put pressure on the economy, which slowed down as the GDP growth rate dropped from 7.6 per cent in the September 2016 quarter to 6.1 per cent in the March 2017 quarter. BS1000 companies posted a revenue growth of seven per cent while net profit went up 17.2 per cent on the back of a strong commodity rally. But sectors such as automobiles, fast moving consumer goods, telecom and information technology weighed on corporate performance last financial year. Bank credit growth to the corporate sector too was at a multi-year low. However, mid- and small-sized companies posted better profit growth than the large companies — the median net profit growth of BS1000 companies was 41.9 per cent. 

 

Going forward, global economies are on a strong wicket, with the World Bank estimating growth of three per cent in 2017 and 3.1 per cent in 2018. Back home, the disruption caused by demonetisation and the introduction of the goods and services tax is behind us, and there is optimism in the air. The much-awaited recovery may be just around the corner, say industry veterans. Infrastructure projects that had been announced are being implemented, road projects have picked up pace, and the rural economy too is on a revival path. Equity analysts expect an acceleration in corporate earnings, based on the recent improvement in the index of industrial production and GDP growth, which touched a five-quarter high of 7.2 per cent in the October-December 2017 period.

 

The World Bank’s forecast of India's GDP growth at 7.3 per cent in 2018-19 also indicates that India Inc should be in good shape. Our cover story looks at the factors that will drive the recovery.

 

The Companies Act has mandated that every listed company must have a woman director on the board. How has India Inc progressed on this front? Read our story in the pages that follow.

 

BS1000 is also about celebrating success. An eminent jury of seven top decision-makers, led by Maruti Suzuki Chairman R C Bhargava, selected the winners of the Business Standard Awards for corporate excellence in 2017. Read the outstanding success stories.