Suryaa Business Desk: Indian corporations recorded performance exceeding expectations in the second quarter of the current fiscal year. According to a report by Motilal Oswal Financial Services (MOFSL), companies achieved the highest profit growth seen in the last 12 quarters. The growth was primarily driven by the banking, financial services and insurance (BFSI), metals, and oil and gas sectors.
An analysis of 230 companies covered by Motilal Oswal showed a 26 percent increase in sales, a 24 percent rise in operating profit (EBITDA), and a 33 percent year-on-year growth in net profit (PAT). This performance surpassed the general market expectation of 19 percent growth. Even excluding oil marketing companies, total net profit growth stood at 30 percent. The banking, metals, and oil and gas sectors contributed 78 percent of the total incremental profits, while the healthcare and cement sectors showed slight underperformance.
In terms of market capitalization, large-cap companies recorded 30 percent annual net profit growth, mid-cap companies grew by 26 percent, and small-cap companies achieved 34 percent growth. Over 75 percent of the analyzed companies met or exceeded analyst expectations. Based on these figures, Motilal Oswal has slightly increased its corporate earnings projections for the upcoming period.
Market sources attribute this quarterly rally to increased consumption in rural areas, steady credit demand, and rising sales of industrial products. Financial analysts suggest that despite global headwinds and a slowdown in exports, domestic demand remains stable, supporting the growth of the Indian corporate sector. These financial results are expected to strengthen the confidence of foreign and domestic investors in domestic equity markets.
