Sales cheer for India Inc, but recovery still uneven
Corporate India has shown signs of renewed energy in the financial year 2024-25. Listed private non-financial companies reported a commendable sales growth of 7.2%, an improvement from the previous year's modest 4.7%.
This surge in performance, highlighted by data from the Reserve Bank of India, is based on the financial statements of 3,902 listed non-government non-financial firms.
However, this recovery remains uneven, largely impacted by increasing input costs and tightening margins.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Secure Your Child's Future with Strong English Fluency
Planet Spark
Learn More
Undo
A story of mixed results
The manufacturing sector experienced a sales increase of 6.0%, up from 3.5% the year prior. This improvement can be attributed to strong performances in key industries such as automobiles, electrical machinery, food and beverages and pharmaceuticals.
However, the growth in manufacturing was somewhat tempered by contractions in sectors like petroleum and metals, especially iron and steel. These declines can be linked to volatility in commodity prices and a slowdown in global demand.
Live Events
In contrast, the services sector displayed even more robust performance. Information technology firms reported a growth rate of 7.1%, up from 5.5% in the previous year.
More notably, non-IT services experienced double-digit growth, driven by thriving activities in telecom, logistics, and trade. This segment's resilience highlighted the adaptability of services amidst global economic uncertainties.
TNN
Challenge of cost pressures
Despite the positive sales figures, cost pressures are a significant concern for businesses. Manufacturers faced a 6.6% increase in raw material costs, with the ratio of these costs to sales rising, indicating more challenging operating conditions ahead.
Staffing costs also escalated, with manufacturers seeing a 10% increase, IT firms 4.4%, and non-IT services experiencing a notable 12% rise. These wage pressures are occurring within a still-tight labour market, leading to squeezed profit margins.
Consequently, manufacturing firms reported a decline in their operating profit margins, dropping by 20 basis points to 14.2%.
As Corporate India navigates through these challenges, the interplay between growth and rising costs will be crucial for the sustainability of this recovery. The coming months will be pivotal in determining how businesses adapt to these economic pressures while striving for continued growth.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
40 minutes ago
- Time of India
Automated resumes flood US job market as AI drives 11,000 applications per minute
Applicant tsunami floods US job market as AI drives 11,000 résumés per minute. (AI Image) A wave of artificial intelligence (AI)-generated résumés is inundating the US job market, leaving employers overwhelmed and job seekers frustrated. According to LinkedIn data, the number of applications submitted on the platform has jumped more than 45 percent over the past year, with an average of 11,000 job applications being submitted every minute. Much of this surge is being fueled by generative AI tools like ChatGPT, which can instantly tailor résumés to match job descriptions. This surge has thrown a wrench into the traditional hiring process. Recruiters now find themselves buried under a mountain of nearly identical résumés, often generated with minimal human input. As reported by The New York Times , Katie Tanner, a human resources consultant in Utah, posted a remote tech job requiring only three years of experience and was stunned by the response: 400 applications in 12 hours, 600 in 24, and more than 1,200 before she removed the listing. Recruiters face an 'applicant tsunami' The application deluge is leading to what some experts describe as an 'applicant tsunami.' Hung Lee, a former recruiter and current writer of a popular industry newsletter, described it to The New York Times as a crisis that is 'just going to get bigger.' With job seekers increasingly relying on AI to generate and submit applications, employers are turning to automation themselves in an escalating arms race. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Thị trường có dấu hiệu suy thoái không? IC Markets Đăng ký Undo Companies like Chipotle have begun using AI-powered chatbots for screening and scheduling interviews. Chipotle's chief executive Scott Boatwright said at a recent conference that their tool, named Ava Cado, reduced hiring time by 75 percent, The New York Times reported. Meanwhile, platforms like HireVue offer AI-driven video interviews and assessments, including games designed to test skills like memory and pattern recognition. However, the use of AI on both sides has led to recruiters facing a new dilemma: determining which candidates are genuinely qualified and which are simply good at gaming the system. As The New York Times noted, 'we end up with an AI versus AI type of situation,' according to Hung Lee. Identity fraud and fake applicants on the rise Another rising concern is the use of fake identities in the application process. According to The New York Times , in January, the US Justice Department indicted individuals in a scheme to place North Korean nationals in remote IT roles at US companies. Emi Chiba, a human resource technology analyst at Gartner, stated that cases of candidates using false identities have been 'growing and growing and growing.' A Gartner report co-authored by Chiba projected that by 2028, about one in four job applicants could be fabricated. The report recommended that companies adopt more advanced identity verification technologies to stay ahead of increasingly sophisticated fraud tactics. AI rewires job search behavior Job seekers, frustrated by automated screening systems, are turning to AI to level the playing field. Alexa Marciano, managing director of recruiting agency Syndicatebleu, told The New York Times that candidates are responding to the cold automation of hiring with tools of their own. She noted that many applicants invest time in highly customized applications, only to face bots on the receiving end. Jeremy Schifeling, a career coach who trains students in tech-driven job searching, told The New York Times that this cycle of automation is likely to continue, with both sides escalating efforts. 'A lot of people are going to waste a lot of time, a lot of processing power, a lot of money until we reach that realization,' he said. The road ahead for US hiring As AI continues to disrupt hiring at scale, employers and job seekers alike are caught in a loop of escalating automation. While AI can offer efficiency, it also introduces new complexities—bias, fraud, and a loss of human connection in recruitment. With no federal law currently regulating the use of AI in hiring, companies are navigating a murky legal and ethical landscape. As The New York Times reported, US anti-discrimination laws may eventually come into play if AI-based decisions lead to unfair outcomes. Meanwhile, the European Union has already classified AI use in hiring as 'high-risk,' signaling where regulation may be headed globally. Is your child ready for the careers of tomorrow? Enroll now and take advantage of our early bird offer! Spaces are limited.
Time of India
42 minutes ago
- Time of India
PU releases third list, 1,618 seats up for grabs
1 2 3 Patna: Patna University (PU) on Friday released the third cut-off list for admissions to undergraduate courses in both conventional and self-financing (vocational) streams in different colleges under it in the current academic session 2025-26. Dean, students' welfare, Anil Kumar, said altogether 1,618 sanctioned seats in different honours subjects in the faculties of arts, science and commerce in Magadh Mahila College, BN College, Patna College, Vanijya Mahavidyalay and Patna Science College are up for grabs after the admissions of 2,913 students from the first two cut-off lists. Counselling and admission to different honours courses would be held on June 30 and July 1 respectively, he said. "The merit list of 1,235 candidates was uploaded on the PU website on Friday. Candidates will have to download their allotment letter with the help of their application ID and password. Further, after depositing the fee online, candidates would report for admission to the college concerned with the allotment letter, payment slip, printout of application form and original as well as photocopies of all certificates, and four copies of their passport-size photographs on Monday and Tuesday. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Cuối cùng, chơi miễn phí game chiến thuật hay nhất 2025! Sea of Conquest Phát ngay Undo If a candidate fails to take admission till July1, their claim for admission will automatically lapse," he said. Students who took admission in the second round and opted for the sliding option will be considered for an upgrade (of the choice of college or honours subject or both) in the third round, subjected to the availability of seats, said the dean. Meanwhile, the entrance test for admission to four-year bachelor of fine arts (BFA) course will be held from 10am to 1.3 pm on Saturday at Magadh Mahila College. Candidates have been directed to download their admit cards from the PU website and reach the examination centre at least one hour before the commencement of the test. College-wise induction meet of newly admitted students will be held on July 2. The classes of the new batch will commence on July 3, the dean said.
Time of India
42 minutes ago
- Time of India
US stock market today: Wall Street heads for record finish as S&P 500 nears all-time high; global markets rally on trade optimism
US stock markets pushed higher on Friday, with the S&P 500 and Nasdaq Composite both within striking distance of all-time highs, as investor confidence was buoyed by easing global tensions and signs of progress on a US-China trade deal. The S&P 500 rose 0.3% in early trading, poised to surpass its record set in February. The Nasdaq Composite also climbed 0.3%, while the Dow Jones Industrial Average added 0.4%. If gains hold, it would mark a dramatic reversal for the benchmark S&P 500, which had plunged nearly 20% earlier this year on fears over President Donald Trump's aggressive tariff policies, according to an AP report. About 20 minutes into trading, the broad-based S&P 500 stood at 6,161.77, up 0.3 percent and above the index's all-time closing high, AFP reported. Nike surged 14% despite warning of a steep hit from tariffs, helping power the market higher. Wall Street's rally capped a week dominated by macroeconomic developments, including the Israel-Iran ceasefire and renewed US-China trade talks. According to AP, US President Trump said a trade deal with China had been signed, although Commerce Secretary Howard Lutnick offered few details. China's Commerce Ministry said the two sides had 'further confirmed the details of the framework' for negotiations but made no mention of rare earth access for US firms. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Skal I på bilferie til sommer? Scandlines Læs mere Undo European stocks followed suit. Germany's DAX jumped 0.8%, France's CAC 40 rose 1.3%, and Britain's FTSE 100 gained 0.5%, tracking Wall Street's bullish mood. In Asia, however, sentiment was mixed. Tokyo's Nikkei 225 rose 1.4% after inflation data showed some easing, while Shanghai's Composite Index fell 0.7% following a sharp 9.1% drop in May industrial profits. Hong Kong's Hang Seng also slipped 0.2%. Stephen Innes of SPI Asset Management told AP 'Beijing may have paused the worst of the trade fight with Washington, but the tariff scars are showing—and unless demand picks up or pricing stabilizes, the pressure on margins and business sentiment will linger.' Back in the US, economic data released Thursday suggested resilience despite the tariff overhang. Durable goods orders beat expectations, and jobless claims fell. However, the economy contracted more than previously estimated in Q1 2025, a drop economists attributed to stockpiling ahead of tariff deadlines. In commodities, US benchmark crude rose 46 cents to $65.70 per barrel, while Brent crude gained 41 cents to $67.10. The US dollar slipped to 144.37 yen, and the euro edged up to $1.1710. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
