Corporate profit to GDP ratio hits 10-year high of 2.63% in FY21

India Inc's combined net profit was up 57.6% to Rs 5.31 trillion in FY21

The outbreak of the Covid-19 pandemic and the subsequent lockdowns to contain its transmission dented India Inc’s sales and revenues in 2020-21 (FY21), even as the decline in prices of raw materials and cost of capital boosted companies’ profits to a decade high.

The combined net profit of the listed companies was up 57.6 per cent to Rs 5.31 trillion in FY21. As a result, the corporate profit share in India's gross domestic product (GDP) hit a 10-year high of 2.63 per cent in the last financial year. The ratio was at a record low of 1.6 per cent in FY20,