India Inc. rocks with 140% profit jump, 44% topline growth in H1 2022

India Inc. put up a splendid performance in the first half of the current fiscal (FY22) with more than 4,500 listed companies posting a cumulative year-on-year growth of 44% at ₹41.66 lakh crore, against ₹28.87 lakh crore a year ago, according to data from the Centre for Monitoring Indian Economy [CMIE]. But what really stood out for the period under review is the robust profitability with cumulative profits for the universe more than doubling [140%] to ₹4.32 lakh crore in H1 of the current fiscal, from ₹1.80 lakh crore in the same period a year ago.

Of the Fortune 500 2021 list, 224 companies [excluding banks and NBFCs] posted a cumulative profit of ₹2.94 lakh crore. Of the list, TVS Motors saw the biggest percentage jump as its profits surged from less than ₹1 crore to ₹232 crore. However, in terms of absolute numbers, more than ₹1 lakh crore in profits came from just six companies with Reliance Industries leading the pack at ₹25,953 crore, followed by ONGC at ₹24,040 crore, and TCS, JSW, IOC and Infosys making up for the rest.

In terms of revenue [excluding banks and NBFCs], 29 companies from the Fortune 500 2021 list more than doubled, tripled and quadrupled their revenues. The cumulative revenue of these companies stood at ₹1.53 lakh crore. The two Fortune 500 companies that quadrupled their topline include RattanIndia Power, a power generation and distribution company and Indus Towers, a telecom infra services provider.

The only PSU to feature in the 29 is NMDC, the country’s largest iron ore producer, whose revenue tripled, rising 219%, to ₹13,305 crore. The company reaped the benefits of robust demand from the steel industry in Q2.

Reliance Industries, which leads the Fortune 500 list, saw its revenues rise by 54% to ₹3,07,560 crore on the back of a strong recovery in the oil-to-chemicals business as demand spiked across products and transportation fuel margins surged.

What is pertinent to note is the significant presence of textile companies in the top 29, as Indo Rama Synthetics, Raymond, Filatex and Nahar Spinning saw their topline more than double.

The maiden consumer tech company to get listed in CY21, Zomato, also saw its revenue more than double as the gross order value in Q2FY22 grew 158% YoY to ₹5,410 crore owing to an increase in the number of transacting users, delivery restaurants, and active delivery partners. During the quarter, Zomato reported a membership base of 1.5 million and over 25,000 restaurant partners.

Aviation, the worst hit sector, saw some respite as Indigo’s revenues more than doubled at 146%, with leisure and work-related travel resuming on the back of easing curbs and growing immunisation drive.

Of the 351 companies from the Fortune 500 list, 105 saw their topline growing in the range of 50-100%, accounting for ₹17.23 lakh crore. Of the gross revenue, Fortune 500 2021 list topper, Reliance Industries, accounted for a substantial portion as revenue surged 54% to ₹3,07,560 crore against ₹1,99,489 crore H1FY20.

However, a majority (217) in the list saw their topline rise between 1% and less than 50%, indicating that the post-Covid recovery is yet to play out for most.