New Delhi: Corporate profits from January to March, or Q4 of financial year 2022-23, are up just 2-3% year-on-year, Business Standard reported. This number is based on the 390 companies that have declared their fourth-quarter results.
This is the companies’ worst performance since April-June 2020.
“In comparison, their combined net profits were up 47.6 per cent YoY in Q4FY22 and 3.4 per cent in Q3FY23. Corporate earnings have taken a beating from a slowdown in revenue growth and a sharp rise in interest expenses,” the Business Standard report said.
Combined net sales (gross interest income in the case of banks and non-bank lenders) of these same companies were up 13.8% year-on-year in January-April 2023, which is the slowest growth in the last nine quarters.
“In comparison, net sales were up 22.4 per cent YoY in Q4FY22 and 18.7 per cent in Q3FY23,” Business Standard reported.
“The aggregate performance has been led by BFSI (banks, financial services and insurance) and automobiles while it has been dragged (down) by weaker than expected performance of metals and mining companies,” said Gautam Duggad and Deven Mistry of Motilal Oswal Securities.