Q2 results: Early birds show sharp decline in corporate earnings

Combined net of 441 firms up 5.8% YoY, slowest growth rate in 9 qtrs

The early-bird results of companies in July-September 2022 (Q2FY23) suggest a slowdown in corporate earnings and the end of the post-pandemic boom in India Inc’s margins and profits.

Corporate revenues, however, continue to grow in high double digits, thanks to the combined effects of higher inflation, high credit growth, and currency depreciation. The combined net profit of 441 early-bird companies in the Business Standard sample was up 5.8 per cent year-on-year in Q2FY23, growing at the slowest pace in the last nine quarters.

In comparison, these companies’ combined net profit was up 27.4 per cent Y-o-Y in Q1FY23 and 21.9