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Positive start to Q4 corporate earnings; combined net
Earnings growth in the early-bird sample has been driven BY banks and iron & steel companies.
The corporate earnings season for the fourth quarter of FY21 has started on a positive note for India Inc.
The combined net profit of 81 companies that declared their quarterly results by Monday evening is up 36.2
percent year-on-year (YoY).
These companies reported all-time high net profits of Rs 39,540 crore in Q4FY21, up from Rs 29,033 crore a year
The early-bird companies’ earnings are, however, down 4 percent on a quarter-on-quarter basis, hinting at a
plateauing of corporate profitability after three-quarters of recovery from Covid-19 lockdown.
The companies’ combined revenues, including banks’ other income and fee income, were up 35.8 percent YoY
during Q4FY21. Growth was amplified by a low base in the corresponding quarter a year ago.
The revenues of these companies were down 12.3 percent YoY in Q4FY20 due to the national Covid-19 lockdown
imposed by the Central government on March 23 last year. For comparison, these companies’ revenues are up
19.1 percent over the March 2019 quarter.
Earnings growth in the early-bird sample has been driven BY banks and iron & steel companies. While banks
gained from a decline in interest cost, steel producers saw a sharp rise in their product prices, resulting in higher
margins and profits.