India Inc’s third-quarter profit growth remains robust, sustaining a double-digit trajectory, buoyed by stable input costs and reduced interest expenses for manufacturing firms. However, revenue expansion stayed below 10% for the third consecutive quarter.
Corporate India is currently reaping the benefits of remarkably elevated margins and profits. The collective net profit for publicly listed companies achieved an unprecedented peak in the quarter spanning April to June 2023. This achievement can be attributed to a significant upswing in both operating and net profits due to a moderation in cost of raw materials. The expansion of profit margins has effectively counterbalanced the deceleration in revenue growth, which during the same time period, dipped into single-digit territory for the first time in nine quarters.
The corporate results of first quarter of FY24 so far (excluding financial services firms) have reflected a substantial surge in profits but a decline in net sales,. Out of the 635 non-financial companies that have reported their results, the combined sales have decreased by 2.82% to reach ₹13.91 lakh crore, according to data from the CMIE. Remarkably, even Reliance Industries, the country’s largest revenue-generating company, faced a 4.69% drop in revenues, totaling ₹2,31,132 crore, alongside a 10.8% decrease in net profit, amounting to ₹16,011 crore.
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Emerging market stocks have been overlooked by investors for most of 2022 & this year, but it’s time to take notice as this undervalued asset class could make a come back in the second half of 2023.
Emerging markets (EM) have experienced a more turbulent ride than the already volatile U.S. stock and bond markets over the past 2 years. Currently, EM stocks are enduring one of their longest bear markets, with the MSCI Emerging Markets Index down approximately 40% from its peak in February 2021.