India Inc gains despite Covid-19 disruptions; combined profit at Rs 1.5 trn

In the manufacturing sector, earnings were also boosted by a sharp decline in input prices that expanded gross and operating margins in most sectors.

Going by headline profits in the September quarter (Q2) of FY20-21, India Inc has done well despite the disruptions due to the pandemic. The combined net profit of listed companies reached a record  Rs 1.52 trillion — up two and half times on year-on-year (YoY) basis. 

In comparison, these firms had reported a combined net profit of Rs 11,200 crore in Q1 FY21 and a combined net loss of Rs 450 crore in Q4 FY20. Not surprisingly, equity investors are bidding-up stock prices across sectors and the broader market is now more valuable than pre-Covid levels. 

The surprise upside on earnings came