look news india
Mumbai: Due to weak demand, the results of the second quarter indicate that the revenue growth and net profit growth of the companies have also slowed down in the second quarter of the current financial year.
According to a research firm report, an analysis of September quarter results of 167 companies revealed that the combined net profit of these companies grew by only five per cent year-on-year, while the net profit remained flat compared to the first quarter.
A strong increase of 16 percent was seen in the net profits of these companies in the second quarter of the financial year 2024.
In the second quarter of the last financial year, the net profit figure of 167 companies was Rs 86388 crore, which has increased by five percent to Rs 90685 crore in this period of the current financial year. In the first quarter this figure was Rs 87569 crore.
The report also said that net sales of companies (gross interest income in case of financial companies) grew by a modest seven per cent year-on-year. Total revenue stood at Rs 7.40 trillion as against Rs 6.92 trillion in Q2FY24. Except for the companies in the IT service sector, the results of the companies in other sectors look weak.
The results in the banking sector have been mixed. Banks' credit growth has slowed and margins have come under pressure. The report also said that demand in FMCG, cement, retail and auto sectors has been weak.