Sparkling Q3: India Inc's net profit at new high amid lower operating costs

Gains largely from lower operating costs, higher product prices and a decline in banks' provisions

India Inc’s quarterly net profit reached a record high of Rs 1.64 trillion in the third quarter ended December 31, 2020, mainly due to gains from higher commodity prices and a big swing in banks' earnings. The combined net profit of 3,323 listed companies that have declared results so far was up 68.6 per cent year-on-year (YoY). In comparison, earnings were up six times (534 per cent) in the second quarter and 6.5 per cent in the corresponding period last year.

Most of the gains in corporate earnings came from lower operating costs, higher product prices — especially industrial commodities