India Inc's Q4 net soars 40%, highest in 11 quarters

MUMBAI:

Lower Commodity Price, Other Income Boost Performance
India Inc is finally showing signs of a turnaround in terms of revenues and profits. An analysis of top listed companies' results, barring some exceptions, showed that net profit growth in the JanuaryMarch quarter (Q4FY16) soared 40% on a yearly basis, which is the highest in the last 11 quarters

The analysis by Crisil also showed that total revenues of these 642 companies grew at 6.1%, the fastest in the last five quarters, while growth of ebitda ( earnings before interest, taxes, depreciation and amortisation), at 15.2% was at a six-quarter high.

“The performance (of India Inc) has been driven by a combination of improvement in operating performance and extraordinary gains. Without the one-offs too, bottom line growth is an impressive 17.3%,“ said Prasad Koparkar, senior director, Crisil Research.

“While aggregate top line growth was 6.1%, ebitda grew faster at 15.2%, a six-quarter high, which was aided by low commodity prices,“ Koparkar said.

Data showed that during Q4FY16, these 642 companies, which represented 72% of NSE's total market capitalisation, earned a total net profit of Rs 49,349 crore from a total revenues of Rs 6.18 lakh crore.

On an annual basis, during FY16 these companies earned an aggregate net profit of Rs 1.79 lakh crore, up 16.7% on FY15 from an aggregate revenue of Rs 22.98 lakh crore, which was up 2.5% on the years.

These figures do no include results by financial and oil companies, Vedanta and TCS, the last two since there were large one-offs for these companies during FY16 and hence strictly not comparable.