On the back of an expected quantum jump in sales of shipping, software and hotel industries, non-financial services are likely to clock an around 22 per cent growth in their net profits, an economic think-tank said.
“We expect the growth in net profits of the non-financial services sector to accelerate to 21.9 per cent in 2010-11 from the 8.7 per cent estimated in 2009-10,” the Centre for Monitoring Indian Economy (CMIE) said in its forecast on the domestic economy.
The growth would be driven by a 16.5 per cent rise in sales, it said, adding the PAT margins too would expand by 0.50 per cent.
CMIE said that shipping, software and hotel industries would benefit from the improvement in the global economy and this would lead to these sectors posting a robust growth of 18 per cent, 39.6 per cent and 30.8 per cent in sales, respectively.
The aviation sector, which was hit by the global meltdown, may also see a rise in sales along with the transport logistics sector due to the improvement in domestic, industrial and trading climate, the CMIE said.
“We also expect sales of LNG (Liquefied Petroleum Gas) storage and distribution sector to rise by a handsome 27.8 per cent because of the transmission of additional gas coming from Reliance Industries’ KG basin,” it said.
At the same time, PAT of the hotel sector will rise by 72.2 per cent and that of the shipping sector by 122 per cent after falling in the last fiscal, the think-tank said.
The transport services and LNG storage and distribution sectors’ PAT would rise by around 15 per cent whereas the software sector is likely to clock a 25 per cent growth in PAT, CMIE said.