Q4 Earnment Watch: An Unwelcome Tends of Profit Road for India Inc.

Copyright © HT Digital Streams Limit all rights reserved. Companies Manjul Paul 2 min read 28 Apr 2025, 04:24 PM IST The Q4 earnings season for India Inc. managed to generate his usual dose of surprises. (Beeld: Pixabay) Summary In the second part of our series on earnings, we look at the alarming boom in companies that reached losses in the first quarter of the Trump Retoric on the rhetoric of Trump in the first quarter. The recurring stories of business -swaai – a delicate balance between ‘happy landings’ and ‘unhappy landings’ – made an ugly turn this time. In a striking turnaround of the profits, the last quarter of the financial year 2024-25 shows an alarming increase in companies that fall from profitability to losses. A mint analysis of 184 BSE-listed companies shows that more than 9% of businesses experienced a profit reversal, which swung to losses in the previous quarter in the previous quarter, which was the financial year’s most important negative successive earnings shift. Also read: Q4 earnings Live Tracker: The latest on how the largest businesses of India Inc. A detailed analysis of the independent financial data from Capitaline database reveals that this negative trajectory contrasts sharply with the performance of previous quarters. Only 2.2% of companies reported in the December quarter, 1.6% in the September quarter, and 6% in the June term. This sharp upswing in companies that report negative profit turnover – from 6% in June to 9% in March – is a worrying shift and indicates a disturbing escalation above a temporary setback and a vulnerability that can worsen as macro economic winds and geopolitical tension have a perfect storm for corporate finance. Also read: What analysts miss in accordance while accompanying at the same time, positive earnings transformations also occurred, but were less and further between, and in the March quarter from 7.1% to just 4.3% dropped from 7.1% in the December period. However, June Quarter showed less than 1% of the companies that have a positive turnaround in their profits. Kesoram Industries recorded the sharpest profits in March of the net loss in the previous quarter. In absolute numbers, 17 companies dropped in losses compared to only four in the December quarter, three in the September quarter and 11 in the June term. Of the heaviest businesses, five companies-tejas Networks, Motilal Owal Financial Services, Network18 Media, Rallis India and Nelco-reported substantial losses of more than £ 10 crore in the March quarter. The financial losses of these businesses represented 30% of the joint losses of the samples (through all these 17 companies with a negative profit turned). Media Conglomerate Network18 experienced a particularly dramatic financial decline, with a significant loss in March quarter after achieving a strong profits of around £ 3,432 crore in the previous quarter. Similarly, Tata Networks from Tata Group saw that its quarterly profits from £ 165 to a loss of £ 62 fell between the two quarters. The market response was fast and serious. After the latest announcement of earnings, Tejas Networks share price arrived by more than 15% on Monday, which sinks investors’ concerns about this broader profit. This is the second part of a series of data stories about the ongoing earnings season. Read the first part here. Catch all the corporate news and updates on live currency. Download the Mint News app to get daily market updates and live business news. More Topics #In Maps Mint Specials