Pharma and oil and gas companies were the most profitable. Among the oil and gas companies, BPCL’s net profit jumped 120 percent to Rs 2,777.6 crore in the October-December quarter.
The profits of Indian corporate companies are increasing continuously. During the last two quarters, there has been double digit growth in the profits of these companies. Increase in profits of corporate companies is being recorded due to cost cutting by companies and increased demand during the festival season.
67% increase in net profit
According to an Economic Times news, 3087 corporate companies reported a 67.7 per cent increase in net profit for the October-December quarter (2020-21). This is the highest level of profit in the last nine quarters. For the companies, this profit was due to cost reduction as only 1.8% growth in revenue was recorded during this period.
Reduction in costs and reduction in advertising expenses increased profits
Companies cut costs significantly during the Corona transition. The cost on advertisements was reduced and in some cases the product was mixed. This increased the margins of companies. According to some analysts, the companies’ performance in the October-December quarter was the best performance of the decade. As far as sectoral performance is concerned, companies in IT, auto, bank cement and metal sectors performed well on the profit front.
Pharma and oil-gas companies gain the most
Pharma and oil and gas companies were the most profitable. Among the oil and gas companies, BPCL’s net profit jumped 120 percent to Rs 2,777.6 crore in the October-December quarter. Earlier, the company had a profit of Rs 2,247 crore in the same quarter of 2019-20.
According to the information, there has been a huge jump in the prices of oil, and the profit has increased on selling the stock that the company already had. However, companies in the aviation, tourism and retail sectors performed consistently on the profit side. Aviation and tourism sector has suffered the most.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.