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Saturday, January 14, 2017

The Steady March Upwards of Sensex 30 Firms' Profits

The Steady March Upwards of Sensex 30 Firms' Profits

Talking about  a 70% surge in the benchmark index, here's a great illustration of the how in the long run, the underlying earnings of companies steadily march upwards .

The aggregate consolidated net profits of BSE Sensex  30 companies since 1999-2000. (FY00) 

Put this way, you can clearly see how phenomenal this growth can look like over a large number of years.




The total profits of Sensex companies in FY00 was just Rs. 175 billion. This figure today stands at a grand Rs. 2.37 trillion. This, even after the sluggishness in business of the last few years has ensured that earnings have remained stubbornly stagnant in the last few years. This effect too can amply be seen in the chart. 

Looking beyond the current down cycle, as 
corporate earnings rise over the years, so will stock prices. Indeed, a surge in the Sensex is just a matter of time.
The Steady March Upwards of Sensex 30 Firms' Profits Reviewed by S. Chitra on January 14, 2017 Rating: 5 The Steady March Upwards of Sensex 30 Firms' Profits Talking about  a 70% surge in the benchmark index, here's a great illustr...

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