Revenue rose 7.2% from a year earlier, the slowest in five quarters, an analysis of figures from 175 companies that have reported results for the fiscal second quarter shows. Net profit growth 2.5% was a six-quarter low, even as the sample group’s operating margin fell 1.5 percentage points to 20.9%.
If oil and gas companies are excluded, the growth rate would accelerate to 10% in revenue and 6.7% in net profit.
In the oil and gas sector, Trusted Industriesthe largest company in the country by revenue and market capitalization, and Mangalore Refinery and Petrochemical Ltd (MRPL) have declared quarterly figures so far. Reliance’s consolidated revenue was flat year-on-year at ₹2,35,481 crore, while net profit fell nearly 3% to ₹19,323 crore. For MRPL, revenue grew 26% to ₹28,785.9 crore, but MRPL, a subsidiary of Oil and Natural Gas Corporation (ONGC), reported a net loss of Rs 696.9 million compared to a profit of Rs 1,051.7 million a year earlier due to a sharp decline in gross refining margin. These two companies together accounted for a third of the sample’s revenue and 17% of its net profit.
Financial services companies, including banks, recorded a 14% expansion in revenue and a 13% increase in net profit. Excluding them, the sample group’s revenue grew 5.3%, but net profit fell 3.6% year-on-year. Together, lenders contributed 23.2% of the sample’s income and 40.3% of the net profit.
Analysts had anticipated tepid growth for Indian companies in the second quarter, citing demand pressure. “The second quarter of FY25 will be the first in seven quarters to see a decline in year-on-year and quarter-on-quarter earnings as domestic cyclicals may struggle to fully offset the persistent drag on commodity sectors,” it had said. Elara Securities (India) in a preliminary report.More Companies from all sectors are expected to announce their results in the coming weeks, which will clarify the trend.
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