Corporate profit to GDP ratio at decade high in 2022: Motilal Oswal

Thu, 13 Mar 2025

Corporate profit to GDP ratio at decade high in 2022: Motilal Oswal

ANI
23 Jun 2022, 11:33 GMT+10

Corporate profit to GDP ratio at decade high in 2022: Motilal Oswal

New Delhi [India], June 23 (ANI): The corporate profit to Gross Domestic Product (GDP) ratio rebounded to a decade high of 4.3 per cent and 4.5 per cent for the Nifty-500 universe and listed India companies, respectively, brokerage house Motilal Oswal Financial Services said in a report.

The recovery was driven by the expansion in the economy, after a Covid-led contraction in 2021, while corporate profit rose at a faster rate of 48 per cent year-on-year for the Nifty 500 companies.

"The growth in profit, however, was hardly broad-based and driven only by three sectors: BFSI, oil and gas (OG), and metals. More than half of the incremental growth was steered by BFSI, underpinned by a modest revival in credit growth and improvement in asset quality trends," it said.

Notably, India's corporate profit, listed and unlisted companies combined, to GDP ratio fell to 2.2 per cent from 7.8 per cent during 2008-20 period, the report said.

On the outlook, the brokerage expects the improvement in corporate profit to GDP to sustain going ahead.

"India's earnings cycle has seen a turnaround after almost a decade; the current adverse macroeconomic backdrop with heightened worries on rising interest rates, elevated crude oil prices and liquidity tightening has kept the market volatile and jittery. Meanwhile, the domestic earnings continue to remain healthy and provide a silver lining, notwithstanding the challenges faced on multiple fronts."After 15 per cent and 35 per cent growth in earnings per share in Nifty in financial year FY21 and FY22, respectively, it is expected to grow at 18 per cent in FY23.

Though the risks to earnings are tilted towards downside, the brokerage house, however, expects the profit to GDP ratio to improve both in the short as well as medium term. (ANI)

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Japan Herald.

More Information

null in null

Asia Pacific

Section

Philippines' Duterte detained at request of International Criminal Court

Former Philippines President Rodrigo Duterte arrested under ICC orders

MANILA, Philippines - In a dramatic move, the International Criminal Court on Tuesday arrested the former president of the Philippines,...

Walmart faces pushback as it asks Chinese suppliers to cut prices

Walmart asks China suppliers for price cuts on Trump tariffs

BENTONVILLE, Arkansas: Walmart is pressuring some Chinese suppliers to cut prices in response to President Donald Trump's imposed U.S....

China targets 5 percent growth for 2025 amid economic uncertainty

China keeps its economic growth target at 'around 5 percent' for 2025

BEIJING, China: China has set an economic growth target of around five percent for 2025, signaling efforts to stabilize the economy...

Man disqualified from driving for next 92 years to face Bathurst court

Man caught driving in NSW Central West despite losing license until 2117

BATHURST, NSW, Central West, Australia - A man who has been disqualified from holding a driver's license for the next ninety-two years...

Caps' Pierre-Luc Dubois faces former team in visit to L.A.

Caps' Pierre-Luc Dubois faces former team in visit to L.A.

(Photo credit: Jason Parkhurst-Imagn Images) Pierre-Luc Dubois didn't last long with the Los Angeles Kings. Just one season into...

AI robots emerge as hot trend in China's consumer market

AI robots emerge as hot trend in China's consumer market

A girl interacts with an artificial intelligence (AI) robot at the fourth China International Consumer Products Expo (CICPE) in Haikou,...

Business

Section

US, Canadian farmers face rising fertilizer costs amid trade tensions

US, Canadian farmers face soaring fertilizer prices amid Trump tariffs

WINNIPEG, Manitoba: Farmers in the U.S. and Canada are bracing for soaring fertilizer prices as trade tensions escalate between the...

U.S. stocks stabilize after relentless losses

Strong gain by Nasdaq Composite helps stem Wall Street carnage

NEW YORK, New York - A slightly lower-than-expected CPI reading for February helped U.S. stocks to stabilize after some relentless...

New York office market rebounds as big investors hunt for deals

NYC workers' return to office ignites hopes in real estate market

NEW YORK CITY, New York: New York's office market is showing signs of a comeback as major investors, including Blackstone, scout for...

Micro-wineries in Cyprus bring ancient Commandaria wine back to life

Cyprus' 3,000-year-old Commandaria wine sees a revival

NICOSIA, Cyprus: Cyprus' ancient Commandaria wine, praised for its rich heritage dating back nearly 3,000 years, is making a comeback...

DoorDash, Williams-Sonoma, and others soar on S&P 500 inclusion

DoorDash and Williams-Sonoma to join S&P 500; shares rally

SAN FRANCISCO, California: Shares of DoorDash, Williams-Sonoma, Expand Energy, and TKO Group surged in extended trading on March 7...

Another volatile day for Wall Street as Trump doubles-down on tariffs

Wall Street freefall continues, Dow Jones drops another 478 points

NEW YORK, New York - The freefall fn U.S. stocks continued Tuesday with all the major indices taking a hit durin g the bulk of the...

Movie Review

Blonde