 "return on capital employed, corporate profitability, CMIE, capital efficiency, RoE, manufacturing sector, foreign portfolio investors, earnings outlook, shareholder returns, Indian companies")
Companies are squeezing more profits from their operations relative to the capital they put to work, the highest now since 2011.
Profit after tax relative to capital employed came in at 10.47 per cent in September, shows data from the Centre for Monitoring Indian Economy (CMIE), higher than the 8.41 per cent seen in September last year. This is the highest since March 2010.
The latest numbers cover 3,307 non-financial sector companies. Capital employed includes money invested by shareholders as well as borrowed funds. Higher numbers indicate that the company is able to deploy funds in a profitable manner. Other
