India Inc faces new challenges to maintain growth momentum in FY23

The interest burden on India's public finances will be even bigger if the RBI hikes rates further to tame inflation

A strong double-digit recovery in revenue and profit in 2021-22 (FY22)   ended a three-year growth drought for India’s top 1,000 listed (BS1000) firms. Their combined revenue was up 33.9 per cent year-on-year (YoY) in FY22, while aggregate net profit was up 72.5 per cent.

In contrast, combined revenues had contracted for two successive years in 2020-21 (FY21) and 2019-20 (FY20). They grew at a compound annual growth rate (CAGR) of just 2.2 per cent from 2017-18 (FY18) to FY21.

Similarly, aggregate net profit was down 42.4 per cent YoY in FY20, followed by an earnings recovery in FY21 and FY22.