India Inc's profit-to-GDP ratio dips slightly in FY23; financial pie up

Commodity firms' bottomline taking a hit primary reason

Corporate India’s net profit as a percentage of gross domestic product (GDP) dipped in the 2022-23 financial year (FY23) -- after rebounding sharply in FY22 -- amid a decline in global commodity prices.

Top 500 companies’ combined net profit stood at 4.1 per cent of the GDP for FY23, down from 4.3 per cent in the previous financial year when it had gone up from just 3.5 per cent in FY21.

“The year-on-year (YoY) decline was led by global commodities, which contributed adversely to the ratio, while the financial sector contributed positively. The 20 basis points (bps) reduction in the