Reliance Industries Limited (RIL), State Bank of India (SBI), HDFC Bank - Most profitable large-cap firms in FY23; PFC, Canara Bank among profitable mid-cap firms; Banking and Finance (BFSI) sector witnesses massive growth: The Point

FY23 was a bumper year for India Inc., which achieved record-breaking revenues and profits. Sectors such as banking, financial services and insurance (BFSI), power, auto and FMCG were the star performers. Further, RIL, SBI and HDFC Bank (before demerger) are the three most profitable large-cap firms in the said financial year

India Inc's performance
in FY23

An analysis of NSE-listed firms by Business Today reveals that these companies have emerged stronger from the setback of COVID-19 and other curveballs such as geopolitical turmoil, rising interest rates and volatile commodity prices

NSE-listed firms bounce back after COVID-induced setback

Data as of June 19, 2023, as per ACE Equity

In FY23, the combined profit of India Inc. surged nearly four times from the FY20 lows. In FY14, the total profit of India Inc was a little less than Rs 6 Lakh crore vs FY23 where the total profit is closer to Rs 12 Lakh crore. However, in terms of profit growth, there has been a sharp decline in the post-pandemic era as after registering a massive growth of almost 110% between FY20 and FY21, the growth rate has been negative as it declines to less than 20% in FY23

Profits of India Inc.

- Rs 1,021 – Projected NIFTY50 EPS for FY24 compared to Rs 881 in FY23 and Rs 756 in FY22, as per EMKAY Global Financial Services.
- Rs 4.61 lakh crore is the consolidated net profit of BFSI companies in FY23, up 4.43 times from Rs 1.04 lakh crore in FY13
- Rs 1.14 lakh crore is the cumulative dividend paid by TCS, Vedanta and Hindustan Zinc, the highest payers in FY23. The figure stood at Rs 40,330 crore in FY22

India Inc.'s performance in FY23-24: Key highlights

Data as of June 19, 2023, as per ACE Equity

BFSIs share in total profit has surged to 39% in FY23 from 28% in FY13. Crude oil is in the third position with an 11% contribution to India’s Inc’s gross profit

IT Sector – 10%
Automobile sector, Power sector and FMCG sector – 5% each
Healthcare, metals and mining, and Chemicals – 4% each

Overall, the growth of IT sector has remained constant over a span of 10 years, and the rest of the sectors have experienced minor contractions in terms of the growth percentage

BFSI records maximum
surge in total profit in FY23

Data as of June 19, 2023, as per ACE Equity

The cumulative revenue of India Inc. in FY23 topped Rs 150 Lakh Crore for the first time.The gross sales in FY23 were closer to Rs 160 crore as compared to FY20 where the gross sales were less than Rs 100 lakh crore

Surging sales

Data as of June 19, 2023, as per ACE Equity

The combined operating profit of India Inc. has more than doubled in the past seven years. The operating profit in FY23 has surpassed Rs 27 lakh crore with a growth of more than 17% this year

Doubling efficiency

Mukesh Ambani-led Reliance Industries Limited (RIL) recorded a 10% Y-o-Y growth with approx. Rs 67,000 crore net profit in FY23 followed by State Bank of India (SBI) with a growth of 57% to earn a net profit of approx Rs 55,000 crore. Further, HDFC Bank which recently underwent demerger recorded 21% Y-oY growth with a profit of Rs 45,000 in the financial year

TCS – 10% growth, profit of approx Rs 41,000 crore
LIC – 773% growth, profit of approx Rs 28,000 crore
ONGC – 22% growth, profit of approx Rs 35,000 crore
ICICI Bank – 36% growth, profit of approx Rs 33,000 crore
Coal India – 62% growth, profit of approx Rs 28,000 crore
HDFC - 16% growth, profit of approx Rs 26,500 crore
Infosys - 9% growth, profit of approx Rs 23,000 crore
Data as of June 19, 2023, as per ACE Equity

RIL, SBI, HDFC: The Big Boys

Some of the most profitable mid-cap
firms are –

PFC – 13% growth, profit of approx Rs 16,000 crore
Canara Bank – 84% growth, profit of approx Rs 15,000 crore
REC - 11% growth, profit of approx Rs 11,000 crore
Piramal Enterprises – 418% growth, profit of approx Rs 10,000 crore

The Mighty Middle

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