Latest news with #Nifty-500Universe
Time of India
a day ago
- Business
- Time of India
India corporate profits hit 17-year high in FY25; profit-to-GDP ratio rises to 4.7%: Motilal Oswal report shows
NEW DELHI: Indian corporate profits hit a remarkable 17-year high in FY25, with Nifty-500 companies achieving a profit-to-GDP ratio of 4.7%, according to a report by Motilal Oswal. "In 2025, the corporate profit-to-GDP ratio for the Nifty-500 Universe remained at 4.7%, marking a 17-year high," the report said. For all listed companies, the ratio stood even higher at 5.1%, the highest level seen in 14 years, it added. The sustained increase in profit-to-GDP ratio received support from various sectors' strong performance. Notably, Telecom shifted from a seven-year negative contribution to positive territory in FY25. Additional positive contributions came from PSU Banks (0.07%), Healthcare (0.04%), Consumer (0.04%), Metals (0.03%), and Infrastructure (0.2%). Conversely, several sectors experienced decreases in their profit-to-GDP ratio share. Oil & Gas showed the largest reduction at 0.28%, followed by Automobiles (0.03%), Cement (0.02%), Utilities (0.02%), Private Banks (0.01%), and Retail (0.01%). Nifty-500 companies demonstrated resilience with 10.5% year-on-year profit growth in FY25, building upon FY24's 30.5% increase and achieving a five-year CAGR of 30.3%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo "The corporate profits for the Nifty-500 universe experienced double-digit growth, rising 10.5% YoY in FY25," the report added. These results were achieved despite weak consumption, reduced government expenditure during election-related first half, and export volatility amidst global uncertainty. The overall listed companies' profit-to-GDP ratio increased marginally from 5.0% in FY24 to 5.1% in FY25. Including both listed and unlisted firms, the ratio had increased to 7.3% in FY24 from 6.3% in FY23. Ownership analysis revealed private companies within Nifty-500 reached a record profit-to-GDP ratio of 2.8% in FY25, up from 2.4% in FY24. Private companies in the Nifty-500 hit a record profit-to-GDP ratio of 2.8% in FY25, up from 2.6% in FY24, according to a Motilal Oswal report. Public sector units (PSUs) saw a slight dip to 1.6% from 1.8%, while multinational companies (MNCs) posted their highest-ever ratio of 0.31% in FY25, up from 0.29% last year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
a day ago
- Business
- India Gazette
India Inc's corporate profits reach 17-year high in FY25: Motilal Oswal
New Delhi [India], June 13 (ANI): Corporate profits in India reached a significant milestone in FY25, with the profit-to-GDP ratio for the Nifty-500 companies standing at 4.7 per cent, marking a 17-year high, according to a report by Motilal Oswal. For the listed Indian companies, this ratio was even higher at 5.1 per cent, a 14-year high. It said, 'In 2025, the corporate profit-to-GDP ratio for the Nifty-500 Universe remained at 4.7 per cent, marking a 17-year high'. The report stated that the sustained rise in the profit-to-GDP ratio was supported by strong performance in several key sectors. Telecom, which had been a negative contributor for the past seven years, turned positive in FY25. Other sectors contributing to the rise included PSU Banks (which added 0.07 per cent to the ratio), Healthcare (0.04 per cent), Consumer (0.04 per cent), Metals (0.03 per cent), and Infrastructure (0.2 per cent). However, some sectors saw a drop in their share of the profit-to-GDP ratio. Oil & Gas saw the biggest decline of 0.28 per cent, followed by Automobiles (0.03 per cent), Cement (0.02 per cent), Utilities (0.02 per cent), Private Banks (0.01 per cent), and Retail (0.01 per cent). Despite a challenging environment, corporate profits for the Nifty-500 companies grew by 10.5 per cent year-on-year in FY25. This double-digit growth is notable as it comes on a high base of 30.5 per cent in FY24 and represents a strong 30.3 per cent CAGR over the past five years. It said, 'The corporate profits for the Nifty-500 universe experienced double-digit growth, rising 10.5 per cent YoY in FY25'. The report highlighted that this performance was achieved during a year marked by weak consumption, a slowdown in government spending during the first half due to elections, and volatile exports amid global uncertainties. For the overall listed universe, India's corporate profit-to-GDP ratio rose slightly from 5.0 per cent in FY24 to 5.1 per cent in FY25. When including both listed and unlisted companies, the ratio had already seen a sharp jump to 7.3 per cent in FY24 from 6.3 per cent in FY23, mainly due to the spike in profits of listed firms. The report also analysed corporate profits based on ownership. Among private companies within the Nifty-500, the profit-to-GDP ratio reached an all-time high of 2.8 per cent in FY25, up from 2.6 per cent in FY24. For PSUs, the ratio declined slightly to 1.6 per cent from 1.8 per cent a year ago. Meanwhile, MNCs recorded their highest-ever ratio of 0.31 per cent in FY25, up from 0.29 per cent in FY24. (ANI)
