look news india
The results of Indian companies for the first quarter of the financial year 2024-25 April-June are out. Indian corporate profits fell by 3.1 percent.
This matter is very serious, because in the same period of the previous financial year, the profits of Indian companies had increased by 31 percent. In terms of earnings growth, this is the worst performance of the company since the first quarter of the financial year 2020-21. At that time, the graph of companies had gone down due to the Corona epidemic. During the first quarter, despite stable interest rates, low input costs, the growth rate of companies remained slow. However, the unbearable heat and elections in the country during April-May are also the main reasons for this negative situation of Indian companies.
The combined net sales of 2,539 companies in the first quarter of 2024-25 was Rs 22.9 lakh crore. Which was 5.2 percent more than Rs 21.7 lakh crore in the same period last year. However, the total expenditure during this quarter increased by 6.4 percent to Rs 19.6 lakh crore. This figure was Rs 18.5 lakh crore in the same period last year. During the first quarter of the financial year 2024-25, the companies had a combined net profit of Rs 1.9 lakh crore. In which there was a contraction of 3.1 percent. In the first quarter of the financial year 2023-24, the companies had a combined net profit of Rs 1.97 lakh crore.
The graph of companies fell
Sales growth was slow, sales growth was in single digits, which was a very worrying situation
Sales of sectors such as cement, aluminium, steel were impacted by the heatwave, and elections also impacted sales growth, however the durables sector witnessed a boom due to the heatwave in the country during the first quarter, recording its best ever quarterly performance.
Slower profit growth hit gross value added, forcing the Reserve Bank of India to lower its GDP forecast for the first quarter of 2024-25.
Despite slow profit growth, companies had no trouble paying interest while keeping debt under control