Report card of corporate India
Last five years have not seen the growth as analysts were expecting.
Last five years have not seen the growth as analysts were expecting.
Brief:
Business Standard reports that past five years haven’t been good for the corporate India.
Corporate India invested less than before. Growth happened due to a surge in retail credit and higher revenue spending by the government.
Only a third of the business groups’ revenue grew by double digits. Only half of the businesses’s profit grew by double digits. And there was decline in revenues in the last five years.
Who gained the most?
The report calculated compounded annual growth rate ( CAGR) for revenue, net profit and market capitalisation.
Bajaj grew the fastest. BS reports that the combined m-cap of the group is up four times to Rs 4.08 trillion as on March 22, 2019, against Rs 1 trillion on May 26, 2014
Hinduja, Mukesh Ambani’s RIL, Murugappa and Adani followed Bajaj.
Reliance Industries has been the single-largest investor in the private sector in the last five years.
Who lost the most?
Anil Ambani’s Reliance Group lost 85% of the the market capilisation in the last five years.
Naveen Jindal, Sun Pharma, Bharti and Munjal Hero lost the most after Anil Ambani’s group firms.
In the last five years, the market also punished firms with unsustainable levels of debt and poor cash flows regardless of the sector.
Who went the insolvency way?
4 are from Delhi-NCR
Jaiprakash (Delhi-NCR)
Lanco Infratech (Delhi-NCR)
Amtek Auto (Delhi-NCR)
Bhushan Steel and Bhushan Power (Delhi-NCR)
Alok Industries
Essar Group
Videocon