The corporate earnings season for the fourth quarter of FY21 has started on a positive note for India Inc.
The combined net profit of 81 companies that declared their quarterly results by Monday evening is up 36.2 per cent year-on-year (YoY).
These companies reported all-time high net profits of Rs 39,540 crore in Q4FY21, up from Rs 29,033 crore a year ago.
The early-bird companies’ earnings are, however, down 4 per cent on a quarter-on-quarter basis, hinting at a plateauing of corporate profitability after three quarters of recovery from Covid-19 lockdown.
The companies’ combined revenues, including banks’ other income and fee income, were up 35.8 per cent YoY during Q4FY21. Growth was amplified by a low base in the corresponding quarter a year ago.
The revenues of these companies were down 12.3 per cent YoY in Q4FY20 due to the national Covid-19 lockdown imposed by the Central government on March 23 last year. For comparison, these companies’ revenues are up 19.1 per cent over the March 2019 quarter.
Earnings growth in the early-bird sample has been driven BY banks and iron & steel companies. While banks gained from a decline in interest cost, steel producers saw a sharp rise in their product prices, resulting in higher margins and profits.