Q1 early-bird results show inflation effect on India Inc's profits

First sequential contraction in corporate earnings after 4 quarters of expansion

The early-bird results for the April-June 2022 quarter (Q1FY23) hinted at a decline in earnings, even as corporate revenue continued to grow at a fast clip. This was largely because of higher commodity prices and sharp inflation.

Banks and Reliance Industries (RIL) together accounted for the bulk of incremental growth in corporate earnings in Q1FY23. On the other hand, IT services exporters, such as Tata Consultancy Services, and mining & metals companies were a disappointment on this front.

The combined net profit of 231 early-bird companies was up 20.4 per cent year-on-year (YoY) in Q1FY23, down from a 32 per cent YoY