Report Shows Decrease in Corporate Sales Outside of Banking, Financial Services, and Insurance in Q2 – Times of India

MUMBAI: Corporate sales in Q2 FY24 would register a half percentage point decline in sales if BFSIs were to be excluded. Even though overall profits rose nearly 30% due to a drop in expenses, the study of corporate performance revealed. When banks and finance companies are included, the sales are up 2.8%, while profit increase remains unchanged at close to 30%. Bank of Baroda analyzed the performance of the top 3,265 companies. “While banks and service-related sectors benefited from higher credit offtake and pent-up demand, signs of stress were visible in certain pockets. Consumer-oriented industries such as FMCG noted muted growth as rural demand continues to lag,” BoB’s corporate performance report said. The companies that reported declining sales but double-digit profit growth included those in crude oil, gas transmission, industrial gases & fuels, and logistics. In comparison, companies in trading, textiles, plastics, paper, chemicals, insurance, and diversified businesses recorded a decline in sales and profits. Banks and finance companies, and those in media & entertainment, recorded more than 20% growth in sales and profits. Other companies recording double-digit increases in sales and profits were in automobiles, capital goods, construction, electricals, hospitality, infrastructure, and realty. Banks and finance companies skew overall numbers because they form 17.5% of the total Rs 28.8 lakh crore sales. The decline in sales in the non-financial sector is driven by crude oil, which saw a drop of 8.6% in sales and chemicals, which declined by 12.6%. Companies in trading saw the most significant decrease of 29.3% in sales.