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