Non-BFSI companies' net profits shrink sharply for second quarter

Banks account for most of incremental growth in India Inc earnings

Krishna Kant Mumbai
Non-BFSI companies' net profits shrink sharply for second quarter

Net sales growth for listed companies excluding banks, finance, insurance, and stockbroking declined to an eight-quarter low of 17.1 per cent year-on-year (YoY) in Q3FY23, down sharply from the 29.2 per cent in Q2FY23 and 28.4 per cent in the third quarter of FY22

Corporate results for October-December 2022 (Q3FY23) suggest a sharp slowdown in economic activities in non-financial services, including manufacturing.
On costs, companies got some respite from rising prices of commodities and energy but these gains were offset largely by faster growth in interest expenses. A combination of slowdown in revenue growth and a faster rise in expenses adversely affected the earnings of non-BFSI (banking, financial services, and insurance) companies.
In contrast, a rise in the interest burden for India Inc translated into an earnings bonanza for lenders, especially banks. The third quarter was the best for banks in at least four quarters and they accounted for most of the incremental growth in corporate earnings in the period.

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First Published: Feb 16 2023 | 11:50 PM IST

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