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Non-BFSI companies' net profits shrink sharply for second quarter

Banks account for most of incremental growth in India Inc earnings

Non-BFSI companies' net profits shrink sharply for second quarter
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Net sales growth for listed companies excluding banks, finance, insurance, and stockbroking declined to an eight-quarter low of 17.1 per cent year-on-year (YoY) in Q3FY23, down sharply from the 29.2 per cent in Q2FY23 and 28.4 per cent in the third quarter of FY22

Krishna Kant Mumbai
Corporate results for October-December 2022 (Q3FY23) suggest a sharp slowdown in economic activities in non-financial services, including manufacturing.

On costs, companies got some respite from rising prices of commodities and energy but these gains were offset largely by faster growth in interest expenses. A combination of slowdown in revenue growth and a faster rise in expenses adversely affected the earnings of non-BFSI (banking, financial services, and insurance) companies.

In contrast, a rise in the interest burden for India Inc translated into an earnings bonanza for lenders, especially banks. The third quarter was the best for banks in at least four

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First Published: Feb 16 2023 | 11:50 PM IST

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