Profit and Sales Growth Slow Down as Compared to Last Year Amid Rising Cost and Trade Uncertainties

For the same time period in the previous year, the sales of these companies had registered a growth of 9.2 per cent which decreased to 5.7 per cent in Q4 FY24.

The Wire Staff

May 29 2025

For the same time period in the previous year, the sales of these companies had registered a growth of 9.2 per cent which decreased to 5.7 per cent in Q4 FY24.

profit and sales growth slow down as compared to last year amid rising cost and trade uncertainties

Representative image. Photo: Ken Teegardin/Flickr (CC BY-SA 2.0)

New Delhi: Both profit and sales growth have slowed down as the country’s corporate sector witnessed a subdued performance in the quarter ended March 2025.

An analysis conducted by the Bank of Baroda of 1,787 companies listed on the stock exchange revealed that while last year, profit after tax (PAT) of these companies had grown by 12.6 per cent, the same figure for Q4 FY25 came down to 9.2 per cent.

In absolute terms, their net profit was at Rs 3.43 lakh crore in the previous fiscal year, as against Rs 3.13 lakh crore attained in the quarter ended March 31, 2024, reported Indian Express.

Similarly, for the same time period in the previous year, the sales of these companies had registered a growth of 9.2 per cent which decreased to 5.7 per cent in Q4 FY24.

While the weak macroeconomic conditions have impacted demand and resulted in a slowdown in sales growth, companies have also struggled to maintain profitability amidst rising costs and trade uncertainties.

IIP growth rate at eight month low

Meanwhile, the Ministry of Statistics has released Quick Estimate of Index of Industrial Production (IIP) data, which suggests that IIP growth rate, which was 3 per cent in March this year, has come down to 2.7 per cent.

The growth rates of three sectors including mining, manufacturing and electricity for the month of April 2025 are 0.2 per cent, 3.4 per cent and 1.1 per cent, respectively, reported Business Standard.

The present figure marks the lowest growth in the IIP in eight months.

The corresponding growth rates of IIP as per Use-based classification in April 2025 as compared with April 2024 are 0.4 per cent in primary goods, 20.3 per cent in capital goods, 4.1 per cent in intermediate goods, 4.0 per cent in infrastructure/ construction Goods, 6.4 per cent in consumer durables and -1.7 per cent in consumer non-durables.

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