The benchmark Sensex may be close to its all-time high of around 67,000 and the Reserve Bank of India has forecast that the country is expected to grow by 6.5 per cent for 2023-24 and 8.0 per cent during the June quarter, making it one of the fastest growing economies in the world. However, the performance of the corporate sector – the key driver of the economy — does not seem to share that optimism, with company results reflecting a sharp moderation in sales growth and increasing pressure on profit margins.
India Inc’s sales growth has moderated to 5.4 per cent in the first quarter ended June of fiscal 2023-24 because of low realisations and high-base effect. Sales of 281 companies, analysed by Bank of Baroda (BoB), were at Rs 766,011 crore, showing a major fall in growth from 33.8 per cent recorded in the same period of last year.
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