Margin increased but pressure on profits – Margin Increased But Pressure on Profits

The results of companies that have come so far in the fourth quarter of FY 2025 suggests that the increase in profits of the companies has been soft despite the cost decreasing and improvement in margin. So far 175 companies have released the results. The total net profit of these companies increased by 3.8 per cent in the fourth quarter of FY 2025, which is the slowest growth in the last 17 quarter. The total net sales of these companies have increased by 8.5 per cent as compared to 8.1 per cent in the third quarter of FY 2025. Sales increased by 11 per cent in the fourth quarter of FY 2024.

In the fourth quarter of FY 2025, the operational expenses of these companies increased by 2.3 percent. The total operating profit of companies has increased by 11.7 percent. The total net profit of companies releasing the results of the fourth quarter of FY 2025 was Rs 1.19 lakh crore, which was Rs 1.15 lakh crore in the fourth quarter of FY 2024 and Rs 1.14 lakh crore in the third quarter of FY 2025. The total net sales of these companies increased to Rs 9.46 lakh crore, which was Rs 8.71 lakh crore in the fourth quarter of FY 2024.

The results of private sector lenders and IT companies have been reported. Companies of these two regions account for 69 per cent and 52 per cent of the total sales in total net profit. The fourth quarter of FY 2025 saw the profit and income of the bank, finance and insurance (BFSI) sector and softening. The total net profit of 44 BFSI companies included in our sample increased by 4.9 per cent in the fourth quarter of FY 2025, which is the slowest growth after June 2021. The total net sales of BFSI companies increased by 9.6 per cent during this period, the lowest growth in the 14 quarter.

However, private sector lender-ICICI Bank and HDFC Bank contributed the most to the total profit growth in the fourth quarter of FY 2025. Except for BFSI, the total net profit of the rest of the companies that released the results increased to just 3 per cent in the fourth quarter of FY 2025, while the profit had increased by 4.7 per cent in the same period of the previous financial year.


First Published – April 27, 2025 | 10:20 PM IST



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