Top 100 BSE companies see revenue fall to a 3rd in 2024, 5-fold profit rise

The pace of revenue growth of top 100 large and liquid companies listed on the Bombay Stock Exchange (BSE) slowed to a third last calendar year compared with 2023, even as their rates of net profit expansion surged five times, reflecting the evident success of cost control initiatives.

The financial performance by BSE100, a broad representation of the Indian equity market beyond the Sensex, revealed a sharp slowdown across manufacturing, services and consumer companies, showed ETIG compiled data.

Revenues of these companies climbed 9% while net profit rose 32% in 2024, compared with 25% increase in sales and 7% rise in profits during 2023.


"It is largely due to a slowdown in the overall consumption segment as well as oil, gas and steel businesses, where prices essentially remained benign and hurt value growth," said Madan Sabnavis, chief economist, Bank of Baroda. "If BFSI is excluded, the overall growth will moderate even further. While profit was higher, it was largely due to high base effect, cost control by companies that include cost of production, and marginal salary hikes."

Sabnavis expects better aggregate performance from this set of companies next year.

"However, the outlook looks better next fiscal year although it will depend on the quantum of private sector investment and global inflation level," he said.

This reflects in the numbers, too. For instance, consumer companies in the top 100 list posted 7% growth in 2024 versus 15% a year ago, while revenues of infotech companies expanded 5%. Metals, steel, oil and gas companies said revenue fell between 1% and 4%.

Prices Easing

Food inflation in India has started softening, leading to rate cuts after a prolonged pause. In addition, growth, especially in villages, has recovered over the past few quarters, while urban consumption has shown signs of recovery. Inflation has trended down lately, although the consumer index is yet to settle durably below the 4% legal mandate of India's rate-setting panel.

Harsh Goenka, chairman at RPG Enterprises, said 2024, an election year, meant a slowdown in government spending. A prolonged monsoon and a host of geo-political disruptions also dented consumption. "The markets have been on edge for quite some time. Trump triggered the shake-up with his pronouncements. Some degree of uncertainty has prevailed since then," said Goenka.

Shekhar Bajaj, Chairman, Bajaj Electricals, believes competition has been tough, though the demand outlook is likely improving. . "The rural markets have been comparatively stronger than urban markets," Bajaj said.

"Competition too has been tough across markets. Going ahead, I expect demand to gradually pick up in line with the GDP growth, and companies offering good products and right value will grow."

As a group, RPG bucked the trend, he said, adding that India, in general, has started seeing some green shoots, with higher crop output, increased government spending, and larger GST collections.

'Beyond Our Control'

"We are living in uncertain times. A lot depends on macro factors - geopolitics and macroeconomics, especially for those businesses that depend significantly on exports.

In India, during elections last year, government spending on infrastructure reduced, but there is a definite pick up. Enquiries are reasonable, especially in renewable energy, bioCNG and the like," said Meher Pudumjee, chairperson at Thermax.

Analysts too said trade tensions will likely remain a drag on Asia's growth outlook but India is still the best placed in the region against this backdrop - low goods exports, strong services exports and policy support for domestic demand.