Corporate profit-to-GDP ratio attains 11-year high of 4.3% in FY22

Performance comes on the back of 48% YoY growth in bottomline. GDP also expanded 19.5% in FY22 after contracting in FY21 due to Covid-19 disruptions

Cumulative profits of top 500 companies as a percentage of the country’s gross domestic product (GDP) hit a 11-year high of 4.3 per cent in 2021-22 (FY22). 

This was on the back of 48 per cent year-on-year growth in corporate profits. The GDP also expanded 19.5 per cent in FY22 after contracting in FY21 due to Covid-19 disruptions. 

“Notwithstanding the pandemic-induced gloom and weak economic recovery, corporate profits have bounced back from the lows. The corporate profit to GDP ratio rebounded to 4.3 per cent versus a long period average of 3.7 per cent. The ratio improved for 18 of 25 sectors,