India Inc's Q4 net profit takes a 22% hit due to Covid-19, says ICRA

While margins contracted by 30 basis points on y-o-y basis, they fell a sharper 120 basis points on a sequential basis to 16.8 per cent

Financials of Indian companies saw sharp decline in the March quarter — both on sequential and year-on-year (YoY) basis — due to the Covid-19 pandemic.

An ICRA results analysis of 184 companies, excluding financial sector entities, indicates 22 per cent fall YoY in net profit in the March quarter. The March quarter performance also dented 2019-20 (FY20) bottom line, which fell 12 per cent over the year-ago quarter.  

While aggregate revenues were down 2.9 per cent YoY, the impact on margins was higher. While margins contracted 30 basis points (bps) on YoY basis, they fell sharp by 120 bps on sequential basis