Robust Start

Early-bird results for the January-March 2024 quarter indicate a double-digit growth in consolidated profits for India Inc.

- RAHUL OBEROI

THE FOURTH QUARTER of FY24 has brought happy tidings for India Inc. A calculation of the results declared till May 6 shows that consolidated net profit rose 30% year-on-year (YoY) in Q4FY24, against a 4% rise in the year-ago period. The top line witnessed a rise of 14% YoY to ₹8.8 lakh crore.

A total of 28 companies in the Nifty 50 index had reported their results in Q4FY24 till May 6. While some of them showed resilience and growth, others grappled with challenges stemming from economic uncertainties and shifting consumer behaviour.

Let us take a closer look at the sectors. The IT sector reported a mixed set of results. While TCS and Infosys posted 9.14% and 30% YoY growth, respectively, in consolidated net profit, to ₹12,434 crore and ₹7,969 crore, for HCLTech, the number was almost flat at 0.08% YoY to ₹3,986 crore. The net profit of Tech Mahindra, LTIMindtree, and Wipro witnessed a decline of 41%, 1.23% and 8% respectively.

“The IT services industry is poised to continue moderate revenue growth in the near term. However, operating profits are expected to improve with cost optimisation measures,” says Vinod T.P., Research Analyst at Geojit Financial Services. The gross sales of TCS and Infosys rose 3.5% and 1.3%, respectively, YoY, while Tech Mahindra and Wipro reported a fall of 6.1% and 4.2% YoY.