Top 100 BSE companies see revenue fall to a 3rd in 2024, 5-fold profit rise

revenue growth of top 100 large and liquid companies listed on the Bombay Stock Exchange (BSE) slowed to a third last calendar year compared with 2023, even as their rates of net profit expansion surged five times, reflecting the evident success of cost control initiatives.
The financial performance by BSE100, a broad representation of the Indian equity market beyond the Sensex, revealed a sharp slowdown across manufacturing, services and consumer companies, showed ETIG compiled data.
Revenues of these companies climbed 9% while net profit rose 32% in 2024, compared with 25% increase in sales and 7% rise in profits during 2023.
«It is largely due to a slowdown in the overall consumption segment as well as oil, gas and steel businesses, where prices essentially remained benign and hurt value growth,» said Madan Sabnavis, chief economist, Bank of Baroda. «If BFSI is excluded, the overall growth will moderate even further. While profit was higher, it was largely due to high base effect, cost control by companies that include cost of production, and marginal salary hikes.»
Sabnavis expects better aggregate performance from this set of companies next year.

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«However, the outlook looks better next fiscal year although it will depend on the quantum of private sector investment and global inflation level,» he said.

This reflects in the numbers, too. For instance, consumer companies in the top 100 list posted 7% growth in 2024 versus 15% a year ago, while revenues of infotech companies expanded 5%. Metals, steel, oil and gas companies said revenue fell between 1% and 4%.

Prices Easing

Food inflation in India has started softening, leading to rate cuts after a prolonged pause. In addition, growth, especially in