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An analysis by Moneycontrol of 111 companies (excluding energy, banking, insurance, and financial services) with consistent data over the past 10 quarters reveals that operating profit grew just 6 percent year-on-year—the slowest in five quarters and the seventh consecutive quarter of single-digit growth.
Operating profit margins were at 22.03% in September qtr, the slowest growth in six quarters, compared to 23.05% in June qtr, shows data
Analysts warn that the recent increases in commodity prices may hinder margins, which have risen in recent quarters. The momentum in earnings growth may have slowed, and the benefits from falling raw material prices could be coming to an end, they noted.
Although commodity costs declined in the September quarter, they are expected to stay high due to a lag effect.
A Moneycontrol analysis of 169 companies, which have announced their June quarter earnings and for which data is available for the 25 preceding quarters, shows that aggregate operating profit margin was at 20.83%, the lowest growth since June 2020
