The analysis is based on a sample of 2,076 listed non-finance companies. The main findings of the report are summarised below:
Highlights:
- Operating profit grew at an 8-quarter high of 26% (y-o-y).
- Lower expenditure due to falling raw material costs supported profitability.
- Net sales were muted with a growth of 0.6% (y-o-y), slowest in 11 quarters.
- Base effect, weak overseas demand, and lower global commodity prices weighed on net sales growth.
- Operating profit margin improved significantly to 17.8% in Q1 FY24 from 14.1% a year ago.
- Profitability was steered by sectors like automobiles, infrastructure, oil & gas, etc.
- Performance of textile and IT sectors was impacted by weak external demand.
- Sales of sectors such as chemicals and non-ferrous metals were adversely impacted by lower commodity prices.
- Going ahead, the domestic demand scenario, volatility in crude oil prices, and external headwinds remain key monitorable.
