Q4 earnings: Profit-hungry cos go lean on employee costs

Staying afloat

- Manjul Paul

Amid geopolitical uncertainty and market volatility, Indian companies managed to keep their profits afloat in the March quarter (Q4). However, a detailed analysis of the profitable companies shows that much of the profitability involved a reduced wage bill as companies aggressively protected their bottom lines.

An analysis of BSE-listed companies, based on standalone data sourced from Capitaline, reveals that for a growing majority of profit-making firms, net profit growth overtook growth in employee costs in the March quarter, highlighting a concerning trend.