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The top 500 companies listed on BSE witnessed modest revenue growth with strong net profit growth in Q1FY24 due to a fall in raw material prices, according to a Kotak Institutional Equities report. While the revenue of BSE 500 companies rose a modest 7 percent year-on-year (YoY) during April-June, the net profits jumped as much as 46 percent, the report pointed out.
Notably, the raw material costs for these companies fell to 56 percent of sales in the quarter from 60 percent in the previous year. The growth in other income also contributed to the profit, rising 35 percent during the quarter.
Here’s how India’s top 500 listed companies’ fiscal first-quarter results fared:
Revenue of non-financial companies increased by 3 percent YoY while profits increased by 42 percent
EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortisation) of the companies increased by 25 percent from the previous year
Margins of companies increased to 16.4 percent in the quarter. The report pointed out that “in most sectors, margins have recovered to pre-pandemic levels”
The top 100 companies contributed 67 percent to the revenues and 75 percent to the profits of the BSE 500 index
Earnings of mid-cap and small-cap companies increased by 43 percent in the quarter
The EPS of BSE 500 companies is projected at Rs 1,224 for FY2024E and is estimated to reach Rs 1,557 for FY2025E. The report said, “We assume the reported results and management commentary did not add much to the extant high expectations” as the reason for the stable EPS growth despite strong profit growth.
The BSE 500 index has given a return of 15.79 percent in the last six months.
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