India Inc does not seem to be coming out of the woods with regard to growth in corporate earnings. A look at the results of the 46 companies (including banks and financial services) that form a part of the BSE 500 and which announced their Q4 results as of Friday shows that their aggregate net profit fell 7.4 per cent over that registered in the corresponding quarter last year.
Barring banks and other financial institutions, companies across all other sectors have remained under pressure. The 10 financial institutions in the list including HDFC Bank, Yes Bank and Indiabulls Housing saw an aggregate jump of 23 per cent in their net profits and their incomes rose by 21 per cent as interest rates continued to rule high.
On the other hand, if the results of 36 non-financing entities (including RIL, TCS, Infosys, Wipro, Hindustan Zinc and HCL Tech among others) are looked at in isolation, then it paints a grim picture. The aggregate net profit of these companies fell by 13.6 per cent over that in the same quarter last year and the revenue declined 22 per cent.
The drop in aggregate revenue by 22 per cent was primarily driven by decline in revenue of RIL which witnessed a drop following a sharp decline in crude oil prices. RIL however, contributed strongly in the profit growth as its standalone profit jumped 10.9 per cent to Rs 6,243 crore.
The results of the leading four IT majors — TCS, Infosys, Wipro and HCL Technologies has not been very encouraging. TCS announced a dip in profits by 25 per cent for the quarter, while Infosys standalone profits rose by only 5 per cent. On an aggregate, while the revenues of the four players rose 8.7 per cent, their aggregate profits for the quarter ended March 2015 declined by 9.7 per cent on a year on year basis.