Q1 results shocker: 40 companies report more than 50% drop in profit
ET Markets analysed data of all companies with a market capitalization of at least Rs 5,000 crore and found that there were 40 companies which reported over 50% drop in their net profits in Q1.
Allcargo Logistics reported 96% YoY decline in its net profit to Rs 4.28 crore in June 2024 from Rs 118.94 crore in June 2023, according to data from ACE Equity. The company's shares have lost about 18% of its value so far in the year.
Similarly, Rajesh Exports, VIP Industries, Mangalore Refinery and HPCL also saw over 90% fall in profitability during the quarter.
Westlife Foodworld, the shares of which have rallied just 3% so far in the year, saw its profit falling as much as 89% to Rs 3.26 crore in the quarter.
Others in the list include MTAR Tech, Inox Green Energy, Anupam Rasayan, Tata Chemicals, JSW Steel, Adani Power, Laurus Labs and GMM Pfaudler besides PSUs like IOC, BPCL, Mishra Dhatu Nigam and SAIL.
Who shrunk my profits?
An analysis of India Inc's report card of 2,539 companies (excluding BFSI) by Bank of Baroda shows that June quarter sales grew 5.2% YoY, a significant improvement from a decline of 2.5% in Q1 of FY24.
PAT growth fell 3.1% YoY as against a growth of 31.3% in the same quarter of the previous financial year. This was India Inc’s worst Q1 earnings growth since the Covid pandemic.
«The continued drag on sales growth is alarming as it signals weak domestic demand. Notably, there is a decline in profit growth for this segment which can be attributed to the pickup in expenditure growth. This
