India Inc ends FY24 on strong note, growth to continue next fiscal

Non-lending companies reported moderate expansion in operating margins helped by favourable commodity prices and better cost control

June 3, 2024

Given the continuity in government policies, corporate growth in the current fiscal year is also expected to be healthy

Revenue grew by 8.1% year-on-year in the March quarter, marking the fourth consecutive quarter of single-digit growth

Net profit, too, grew in double digits for as many quarters in a row, rising by 24.4% in the March quarter

Domestic cyclical sectors such as automobiles, financial services, healthcare, capital goods, and cement drove performance

Corporate India’s performance in the March 2024 quarter was on expected lines with year-on-year double-digit growth in aggregate net profit and a single-digit increase in revenue, as per media reports. In addition, non-lending companies reported moderate expansion in operating margins helped by favourable commodity prices and better cost control. Given the continuity in government policies, corporate growth in the current fiscal year is also expected to be healthy.

In a sample of 3,907 companies, revenue grew by 8.1% year-on-year in the March quarter, marking the fourth consecutive quarter of single-digit growth. Net profit, too, grew in double digits for as many quarters in a row, rising by 24.4% in the March quarter. The sample’s operating margin contracted by 30 basis points year-on-year to 16.4%. In the year-ago quarter, revenue and profit rose by 12.6% and 9.9%, respectively.

According to experts, domestic cyclical sectors such as automobiles, financial services, healthcare, capital goods, and cement drove performance. At the same time, global cyclicals, including metals and oil and gas, dragged aggregate profitability down.

Source: Economic Times

Recent Articles

Modi and Macron strengthen defence ties, emphasise ‘Make in India’

June 14, 2024

Prime Minister Narendra Modi and French President Emmanuel Macron agreed …

Read More

Surge in foreign firms registering in India, Aviation and Engineering lead

June 14, 2024

Airlines and engineering companies are at the forefront of foreign …

Read More

Government initiatives propel Indian toy exports; more support needed

June 13, 2024

Government measures such as mandatory quality control orders and increased …

Read More