look news india
Mumbai: Profit growth of Indian companies has weakened in the June quarter of the current year as a result of various unfavorable factors. Factors such as rising raw material prices, reduced government capital expenditure due to elections and weak demand due to heat wave have impacted the profitability of companies.
Despite the increase in sales, the company's profit growth has slowed down considerably. According to a report, this figure has been seen as compared to the growth of 2.30 percent and 37.10 percent respectively in sales and net profit of about 3000 companies in June of the current year.
The growth in corporate profits in the current year has been mostly witnessed in the banking and financial services sector. Profit growth in the financial sector has been high as a result of growing business and strong performance across all financial metrics.
Excluding banks and financial services companies, the 2539 companies analysed recorded a growth of 5.20 per cent in sales while net profit declined by 3.10 per cent, the report said.