look news india
Mumbai: The third quarter of the current financial year has seen a high double-digit growth in the net profits of the country's companies. Margins of companies have seen improvement due to fall in raw material prices and reduction in energy costs.
Revenue growth slowed in the third quarter but was not reflected by higher margins.
An analysis by a research firm that reported quarterly results of 3,340 listed companies till the first fortnight of February said the companies' combined net profit rose 24.70 per cent to Rs 3.18 lakh crore from Rs 2.55 lakh crore. The third quarter of the last financial year was crores.
The combined net sales of 3,340 companies increased by 7.80 percent year-on-year. However, net sales increased by 16.80 percent in the third quarter of the last financial year.
The combined net sales of companies in the third quarter of the current financial year stood at Rs 34.63 lakh crore, which was Rs 32.13 lakh crore in the same period of the last financial year.
The combined net profit margin of the companies also increased by 1.12 percent to 8.66 percent from 7.54 percent in the third quarter of FY 2023.
Margins of companies in most sectors except IT services companies have seen an increase. Margins of IT services companies have been under pressure due to the mismatch between growth in net sales and growth in wage costs.
The biggest increase in margins has been seen in the margins of companies in the oil and gas sector. After that, the ranking of companies in mining, metal and auto sectors is also given in the report.
Due to increase in demand in the country, the performance of companies is improving. Purchasing Managers' Index (PMI) of manufacturing and service sector companies is also seen continuously high.