Reflecting a disconnect with GDP growth numbers, big corporations such as M&M, Cipla and Sun Pharma as well as state-owned heavyweights, NTPC, SAIL and IOC have announced lower quarterly profits while many others have fared even worse, hit by rising costs and subdued demand.
The January-March quarter earnings season has been bad for a host of other companies as well, including public sector giants like NMDC and Coal India which announced their results last week.
Similar was the case for Hindalco, Wockhardt, Omaxe, United Breweries and Bajaj Hindustan from the private sector.
The disappointing results have come at a time when India has overtaken China to become the world's fastest growing economy by clocking 7.5 per cent GDP for the March quarter. However, a sharp downward revision of growth figure for the previous quarter has led to economists raising concerns.
Besides, agriculture remains a weak area for the economy.
For Mahindra and Mahindra, unseasonal rains played the spoilsport as rural economy took a hit and impacted its key tractor business. The case was similar for Escorts Ltd.
Things appeared to be no better for Sun Pharma, which has been fast emerging as a multinational giant from India, as its net profit plunged almost 45 per cent to Rs 888 crore in the fourth quarter ended March 31.
Drug major Cipla's consolidated net profit remained flat at Rs 259.66 crore for the quarter ended March 31.
Realty firm Unitech reported consolidated net loss of Rs 162.54 crore for the fourth quarter of last fiscal on lower sales and higher expenditure.
Unitech MD Sanjay Chandra said: "The slowdown in the real estate sector has prolonged more than expected. Though green shoots of recovery can be seen in some segments and in certain pockets of the country, a more widespread and sustained recovery is yet to take hold of the sector."
State-run NTPC's net profit also dipped by 5 per cent to Rs 2,944.03 crore in the same quarter due to higher depreciation, among other reasons.
SAIL reported much deeper plunge of 26 per cent in its fourth quarter net profit to Rs 334 crore, while its total income declined by 13 per cent to Rs 11,684 crore.
For another PSU giant Indian Oil, the quarterly net profit fell by one-third as it received lump sum subsidy in the same period of previous fiscal.
"The just concluded Q4 earnings season indicates that the economic recovery has been sluggish and H1 FY16 could remain challenging," said Hitesh Agrawal - Head Research, Reliance Securities.
Homegrown auto major Mahindra & Mahindra reported a 38.61 per cent decline in standalone net profit at Rs 550.56 crore, hurt by slowdown in automotive and farm equipment segments. This is the biggest fall in fourth-quarter profits in over six years.
