The Crossbill News Desk
India’s corporate sector posted a tepid performance in the March 2025 quarter, with both profit and sales growth showing signs of a slowdown.
A recent analysis by the Bank of Baroda, covering 1,787 listed companies, revealed that profit after tax (PAT) growth dropped to 9.2 per cent in Q4 FY25, compared to 12.6 per cent in the corresponding quarter last year, The Indian Express reported.
In absolute terms, the combined net profit of these companies stood at Rs 3.43 lakh crore in Q4 FY25, down from Rs 3.13 lakh crore in the same period a year ago.
Sales growth also saw a similar downward trend, falling from 9.2 per cent in the previous year to 5.7 per cent in the March 2025 quarter.
The decline in profitability and revenue has been attributed to weak macroeconomic conditions that have weighed on demand.
Rising input costs and persistent trade uncertainties further eroded companies’ ability to maintain healthy margins.
In a related development, the Ministry of Statistics and Programme Implementation released the latest Quick Estimates of the Index of Industrial Production (IIP), which also pointed to a sluggish industrial climate.
The IIP growth rate slipped to 2.7 per cent in April 2025, down from 3 per cent in March, marking the lowest level in eight months.
Sector-wise, mining recorded a marginal growth of 0.2 per cent, manufacturing expanded by 3.4 per cent, and electricity generation grew by 1.1 per cent in April 2025, according to Business Standard.
Under the use-based classification, primary goods saw a muted growth of 0.4 per cent, while capital goods posted a strong increase of 20.3 per cent. Intermediate goods and infrastructure/construction goods rose by 4.1 per cent and 4 per cent, respectively.
Consumer durables recorded a healthy 6.4 per cent growth, but consumer non-durables contracted by 1.7 per cent, indicating subdued household demand.
Together, the corporate earnings data and industrial output figures reflect a broader economic deceleration as businesses grapple with challenging market conditions.
A recent analysis by the Bank of Baroda, covering 1,787 listed companies, revealed that profit after tax (PAT) growth dropped to 9.2 per cent in Q4 FY25, compared to 12.6 per cent in the corresponding quarter last year, The Indian Express reported.
In absolute terms, the combined net profit of these companies stood at Rs 3.43 lakh crore in Q4 FY25, down from Rs 3.13 lakh crore in the same period a year ago.
Sales growth also saw a similar downward trend, falling from 9.2 per cent in the previous year to 5.7 per cent in the March 2025 quarter.
The decline in profitability and revenue has been attributed to weak macroeconomic conditions that have weighed on demand.
Rising input costs and persistent trade uncertainties further eroded companies’ ability to maintain healthy margins.
In a related development, the Ministry of Statistics and Programme Implementation released the latest Quick Estimates of the Index of Industrial Production (IIP), which also pointed to a sluggish industrial climate.
The IIP growth rate slipped to 2.7 per cent in April 2025, down from 3 per cent in March, marking the lowest level in eight months.
Sector-wise, mining recorded a marginal growth of 0.2 per cent, manufacturing expanded by 3.4 per cent, and electricity generation grew by 1.1 per cent in April 2025, according to Business Standard.
Under the use-based classification, primary goods saw a muted growth of 0.4 per cent, while capital goods posted a strong increase of 20.3 per cent. Intermediate goods and infrastructure/construction goods rose by 4.1 per cent and 4 per cent, respectively.
Consumer durables recorded a healthy 6.4 per cent growth, but consumer non-durables contracted by 1.7 per cent, indicating subdued household demand.
Together, the corporate earnings data and industrial output figures reflect a broader economic deceleration as businesses grapple with challenging market conditions.
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