The corporate profit to gross domestic product (GDP) ratio declined sharply in the previous two quarters, reversing the steep rise seen in the second half of financial year 2020-21 (FY21) and FY22.
The combined net profit of the 3,361 listed companies in Business Standard's sample was equivalent to 3.48 per cent of India's GDP at current prices in the September quarter (Q2FY23), down from 3.57 per cent in Q1, and 4.39 per cent in Q2FY22, which was a decadal high. The Q2 figure was, however, higher than the pre-Covid average of 2.3 per cent.
The decline in the ratio was led by manufacturing companies, which saw their profit as a percentage of the GDP fall to a nine-quarter low. In contrast, firms in the services sector - especially banks, financial services, and insurance (BFSI) companies reported record high earnings in Q2 and increased their profit share.
The combined net profit of the firms in the sample declined 7.8 per cent year-on-year (YoY) in Q2 to ₹2.27 trillion from around ₹2.47 trillion a year ago. Quarterly corporate earnings were 18.2 per cent lower than the record high of ₹2.78 trillion seen in Q4FY22.
Esta historia es de la edición December 06, 2022 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición December 06, 2022 de Business Standard.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 8500 revistas y periódicos.
Ya eres suscriptor? Conectar
Multiple launches to boost Cipla's margin prescription
The shares of pharma major Cipla slipped by about 4 per cent on Tuesday, after gaining over 5.6 per cent a day earlier.
Novelis files papers in US for IPO
Novelis, Hindalco Industries' US subsidiary, has filed a registration statement on Form F1 for its proposed initial public offering (IPO) with US securities regulator Securities and Exchange Commission (SEC), the firm said.
MF investment strategy: Be wary of rich valuations
Mutual fund investors are in the crosshairs due to the widespread offloading of stocks by foreign institutional investors (FIIs), expensive valuations of the Indian markets compared to global peers, and nervousness ahead of the Lok Sabha election results.
MFS EMBRACE HEALTHCARE, FINANCE STOCKS AS SMALLCAPS BOUNCE BACK
Mutual funds (MFS) embraced smallcap shares across sectors like healthcare, hospitality, and financial services, as the net inflows bounced back in April from the March lows.
JSPL stock factoring in improving prospects
THE COMPASS DEVANGSHU DATTA Jindal Steel & Power's (JSPL's) Q4FY24 results were in line with consensus.
Ease penal action for glitches, Mils appeal to Sebi
Regulator to seek suggestions applicability of financial disincentives
Markets extend winning run
Vix dips after 13-day rise
US TARIFF HIKE ON CHINESE PRODUCTS - Experts fear China may dump EV, batteries
India should be cautious of any Chinese move to dump electric vehicles (EV) and its batteries following the United States' (US) move to increase tariffs on these products from Beijing, trade experts said on Tuesday.
India set to face hotter heatwaves amid preparation gaps: Study
As summer arrives, India braces for the onslaught of heatwaves, despite having substantial heat action plans in place.
STARS ALIGNED FOR Vi?
When Vodafone Idea (Vi) Chief Executive Officer Akshaya Moondra thanked customers last week for being \"an integral part of the company's story\", the telecom world took notice.