look news india
At the beginning of the financial year 2024-25, the shine of Indian companies seems to be fading. The figures of decline in net profit and reduction in revenue testify to this.
Results of 488 companies came in the first quarter of April-June. It has been found that the net profit of the companies has declined by 1.6 percent year-on-year. Which is the weakest performance in the last seven quarters. The reason for the contraction in these figures of corporate results is the decline on the demand front. These 488 companies account for about 60 percent of the total market capitalization of all the companies listed on the BSE. Of course, the net profit of the companies has increased by 13.6 percent combined compared to the previous quarter. These figures are for the fourth quarter of FY 2023-24. Also, the net profit in the last fourth quarter increased by 65.2 percent on a compounded annual basis compared to the first quarter of FY 2023-24.
The first quarter of 2024-25 has seen the weakest quarterly performance of companies since September 2022. In September 2022, the net profit of companies saw a decline of 20.5 per cent.
Talking about the first quarter of the financial year 2024-25, the total net income of these companies was $ 2.65 lakh. That is, compared to the fourth quarter of 2023-24, this net income has declined by a record 9.5 percent. In the fourth quarter of 2023-24, the net income of these companies was $ 2.93 lakh. Also, in the first quarter of 2023-24, this figure was $ 2.69 lakh.
Net sales declined to 8.8 per cent year-on-year in the first quarter of 2024-25 from 9.1 per cent in the fourth and final quarter of 2023-24. This includes total interest income of banks and non-banking sectors. However, the net sales figure in this quarter has increased from seven per cent in the same quarter of the previous financial year. For April-June 2024, the net sales figure of these companies was reported to be Rs 25.57 lakh crore combined. In the previous quarter April-June, this figure was Rs 26.12 lakh crore. However, this figure is higher than the figure of Rs 23.5 lakh crore for the first quarter of FY 2023-24.
Corporate earnings in FY2024-25 were led by companies in the banking, finance, services and insurance (BFSI) sector as compared to the previous quarter. Also, the overall earnings of companies in the oil and gas, mining, metals sector were impacted. Even though BFSI companies led corporate earnings on a year-on-year basis, the BFSI automotive sector saw slower revenue growth in the first quarter of 2024-25. Also, the rate of profit growth was sluggish. The cement and specialty chemicals sector also performed poorly during the quarter.
