Corporate India now seems more dependent than earlier on a good showing by the banking, financial services and insurance (BFSI) sector to prop up overall earnings, with the sector's share in India Inc profits reaching 38.2 per cent in the July-September 2024 quarter (Q2FY25), the highest since 2012.
This was also significantly higher than the sector's 23.6 per cent average contribution to overall corporate profits in the past 10 years, excluding the Covid-19 period, when the BFSI share rose sharply amid a shutdown of most non-financial economic activities.
For context, the sector had accounted for 57.2 per cent of all corporate profits in the April-June 2020 quarter (Q1FY21).
During Q2FY25, while the combined profit of the sector rose 15.3 per cent year-on-year from ₹1.08 trillion to ₹1.24 trillion, that of non-BFSI companies declined 4.2 per cent Y-o-Y from ₹2.1 trillion to ₹2.01 trillion.
This story is from the November 19, 2024 edition of Business Standard.
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This story is from the November 19, 2024 edition of Business Standard.
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