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Sales growth of 6,500 Indian firms drop to 20% in Jul-Sept

NEW DELHI, (Asia Pulse) - The sales growth of about 6,500 Indian companies declined by 7 percentage points to 20 per cent in the July-September quarter compared to the previous quarter, a study by Assocham has said. "With rising interest rates, the cost of borrowing has increased, investments have dried up and profit margins have taken a hit," the study said.

The chamber reviewed 6,352 companies in private sector and 133 public sector firms by taking seven parameters like interest payment, net sales, investments and working capital.

"Key macro-economic indicators and financials of 6,485 companies has found dismal performance during the second quarter of current fiscal year.
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"The growth rate of net sales in Q2 slowed down to 20.41 per cent against 27.67 per cent in Q1," it said.