A sharp fall of close to 13 per cent in expenses compared to 6 per cent fall in income led to margin expansion and robust profit growth for corporate India in September quarter. However, income growth, was constrained to -5.2 per cent in September quarter from -27.5 per cent in June 2020 quarter
Manufacturing sector accounted for a little more than 52 per cent of the sales revenue of the Indian industries in the September quarter. Growth in sales declined by 5.4 per cent in September quarter on yearly basis as compared to decline of 29.1 per cent in June quarter.
Interestingly, net profit grew by 46 per cent on account of lower costs, margins expansion in September quarter. This growth in profit was driven by substantial expansion of profit margins. Control over costs turned out to be better than expected which resulted in margin expansion beyond expectation.
Net profit margin of the corporate sector, at 8.3 per cent, is the highest in the last ten years or in almost the last 40 quarters.
Manufacturing sector accounted for a little more than 52 per cent of the sales revenues of corporate India in the September quarter. The financial services sector, which is essentially banking, accounted for about a quarter of the revenues. The non-financial services sector accounted for over 16 per cent.