The economy may be faced with many uncertainties, but Corporate India has pulled through a difficult decade and is now in a position where it has never had it so good. For a sample of 2,785 companies listed on the stock exchanges, net profits in 2021-22 were 9.7 per cent of sales, a level not seen in the last decade and probably not since the financial crisis of 2008 (Data source: Capitaline). Just a little more than two years ago, in 2019-20 (mostly pre-Covid), profits were as low as 3.4 per cent of sales. The best year before the latest one was 2016-17, when the profit margin was 7.2 per cent. In most other years, it hovered around the 6 per cent mark, give or take a bit. Against that backdrop, 9.7 per cent is stratospheric.
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First Published: Fri, June 03 2022. 19:00 IST