The aggregate corporate profit of Nifty 500 companies grew at a slower pace of 8.7 percent year-on-year (YoY) in FY23.
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The contribution of India’s biggest companies to the macroeconomic growth has reduced in year ending March. A data analysis shows that corporate profit to gross domestic product (GDP) ratio of Nifty 500 companies declined marginally to 4.1 percent in FY23, mostly dragged by commodities prices. However, rise in profitability of companies in the banking, financial services and insurance (BFSI) sectors helped to some extent.
The indicator, corporate profit as a share of GDP, which typically evaluates the contribution of listed companies to economic output, had hit a decade-high of 4.3 percent in FY22. Nifty 500 companies cover more than 90 percent of market capitalisation of all listed firms, and reveal the picture of bigger companies in the listed space.