Corporate India's net profit grew 15.5% in Q4 FY25
Corporate India's net profit growth rate increased moderately to 15.5% in the fourth quarter of fiscal 2025, as against 14% in the year ago period according to data from Centre for Monitoring Indian Economy (CMIE). The profit after tax (PAT) as a share of total income was at 10.85% in the quarter ended March 2025. This was slightly more by one percentage point over the corresponding period of the previous quarter.
The growth rate of income from sales slowed to 6.3% in the quarter-under-review from about 8.4% in the year ago period. Other income increased at a pace of 7% in Q4FY25 , much slower than the corresponding period in FY24, when it grew over 14%.CMIE gives data on corporate India's performance for more than 4,200 companies. To be sure, a larger and consistent sample of companies would increase accuracy.
Total expenses increased marginally at a rate of 6.7% in the fourth quarter compared with 6.4% in the year ago period. While total expenses stayed flat, a disaggregation of the expenses show a different picture. Raw material and purchased finished goods cost grew at 6% in the quarter under review. This measure grew just 2% in the corresponding period last year. However expenses incurred on wages and salaries grew at a pace of 6.3% in Q4FY25 , among the slowest since fourth quarter of 2017. Expenditure on salaries and wages had grown 10.2% in the year ago period
The net profit of Nifty 50 companies which are the most representative of corporate India grew just over 12.4% in the fourth quarter of FY25 as against a growth rate of about 24.5% in the same quarter last year.
Equity analysts feel that the value of the stocks of companies across sectors are too expensive in valuations and may not justify their fundamentals.'We would note that valuations have stayed at high levels in several sectors and stocks despite meaningful earnings downgrades,' said analysts at Kotak Institutional Equities.
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