Indian companies' revenue surge in FY24 however wage growth of employees moderate: SBI Report
State Bank of India (SBI).
While the growth in revenue was moderate, the earnings before interest, taxes, depreciation, and amortization (EBIDTA) and profit after tax (PAT) saw a robust increase of 28 per cent and 32 per cent, respectively.
It said «Around 4000 listed entities reported 6 per cent growth in top line in FY24, while EBIDTA and PAT grew by 28 per cent and 32 per cent respectively. However, Employee expenses grew by only 13 per cent in FY24 as compared to 17 per cent in FY23».
Interestingly, the report highlighted a notable moderation in employee expenses. Employee costs grew by only 13 per cent in FY24, a decline from 17 per cent recorded in FY23. This suggests that companies are focusing on optimizing their wage bills while maintaining profitability.
Over the past four years, the report stated that the Indian companies have consistently maintained an average EBIDTA margin of 22 per cent. During the same period, the average annual growth in wage bills has been around 12 per cent. This reflects a careful modulation of employee expenses and other cost components, ensuring a healthy margin of safety.
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