GST impact: India Inc net dips 16% to Rs 87,475 cr in Q1, says CARE Ratings

Profitability of services sector like hospitality and retailing also impacted

India Inc profits dipped by 15.7 per cent to Rs 87,475 crore in the first quarter of the current financial year, largely owing to destocking of goods by companies before execution of Goods and Services Tax (GST) regime from July 1, said a report on Monday.

According to an analysis of 2,108 companies by credit rating agency CARE Ratings, the corporate net profits stood at about Rs 1.04 lakh crore in April-June period of 2016-17.

Besides, net sales of companies slowed down to 8.7 per cent in the three months ended June 2017, after registering a growth of 9.5 per cent in