Nov 17, 2022
By: Rounak JainAccording to a Bank of Baroda report analysing the performance of 1,917 companies, the total revenue in Q2 FY23 came in at ₹25.6 lakh crore, rising 24 percent.
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However, dampening the revenue growth is expenditure, which grew at a faster rate of 30.7 percent to ₹20.66 lakh crore.
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India Inc.’s net profit registered a decline of 5.4 percent to ₹2.18 lakh crore – the BoB report credits this to a rise in expenditure.
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Cumulative revenue for non-BFSI and non-IT companies stood at ₹19.3 lakh crore, growing at a faster clip of 26.7 percent when compared to BFSI and IT companies – which reported a 16 percent growth.
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However, these companies were hit much worse by inflation, with their expenses rising at a much faster rate of 34.4 percent to ₹17.4 lakh crore.
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With expenses remaining elevated, non-BFSI and non-IT companies reported a 22.8 percent decline in net profit – over 4 times worse than all the companies as a whole.
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Auto, retail, trading, hospitality, aviation, industrial gases and fuels, gas, power, paper, chemicals, and logistics reported above average revenue growth in the range of 25-110 percent.
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Infrastructure, diamond and jewellery, capital goods, realty, textile, and consumer durables reported a significant slowdown in revenue growth during the quarter.
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Mining and photographic products reported negative growth in both revenue and profit during the September quarter.
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Realty, diamond and jewellery, infrastructure, and consumer durables reported the highest profit growth even as their revenue slowed down significantly.
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