Preliminary fourth-quarter results signal profit growth

Mumbai: For the final i.e. fourth quarter of the financial year 2022-23, the results of the companies announced so far show that the profits of the companies have increased. A report by a research firm said that the increase in profits was due to a reduction in raw material costs and lower provisioning for banks.

In an analysis of the results of 66 companies, the combined net profit of these companies for the fourth quarter increased by 15.20 percent year-on-year. In the third quarter of the last financial year, the profit increased by 4.30 percent year-on-year.

However, the net sales growth of these companies slowed down to 11.50 percent. Which is the slowest in the last eight quarters.

These 66 companies have achieved a net profit of Rs 67527.10 crore in the fourth quarter of FY 2023 as compared to Rs 58614.80 crore in the fourth quarter of FY 2022. In the third quarter of last financial year, the figure was Rs 62667.50 crore.

The report also noted that the net sales of these companies in the fourth quarter of the financial year 2022 was Rs 4.17 trillion, which was Rs 4.65 trillion in the same period of the last financial year.

In the fourth quarter of the last financial year, the combined cost of raw materials of these companies was lower by 5.10 percent year-on-year. In the fourth quarter of financial year 2022, the cost of raw materials increased by 41.90 percent.

The report also mentioned that the preliminary results indicate that the margins of companies in the manufacturing sector are shrinking.