The meltdown at the bourses has left corporate India not even worth its revenue base with the collective market capitalisation of all the listed companies slipping below their cumulative latest fiscal revenues.
After a 1,071-point Sensex plunge on Friday, the market value of all the listed companies plummetted to about Rs 27,75,000 crore -- which is less than the total full-year revenue of close to Rs 30,00,000 crore reported by these companies in their latest financial years. Besides, two fiscal quarters have already passed for a majority of the companies -- as most of the Indian companies follow April-March financial year -- and the industry has witnessed a considerable revenue growth in this six-month period. Even a modest estimate of 10 per cent revenue growth for the current fiscal would take the total revenue to near Rs 33 trillion, while the market capitalisation are said to be under further pressure given no signs of recovery in global markets. In another interesting turn of events, the market value figure for a majority of the companies have slipped below their latest fiscal revenues, marking a reversal of the trend till early this year prior to the beginning of the downslide on the bourses. As on January 10, the day when the Sensex had scaled its all-time high of 21,206.77 points before embarking on its downhill path, close to 2,000 companies had a market capitalisation figure higher than their full-year revenues. In comparison, just about 1,000 companies' market values were below their full fiscal revenue figures. In comparison, there are only about 800 companies left today which have their market value higher than their latest fiscal revenues, against more than 2,000 firms having a market value lower than their full-year revenue. http://economictimes.indiatimes.com/India_Incs_valuation_slips_below_its_revenue_base/articleshow/3643038.cms To keep a lamp burning, we have to keep putting oil in it --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "Kences1" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/kences1?hl=en -~----------~----~----~----~------~----~------~--~---
