At the monetary policy meeting on August 8, the Reserve Bank of India's (RBI) rate-setting panel maintained India's economic growth outlook, projecting GDP growth of 7.2% for FY25, after keeping the repo rate unchanged at 6.5%.
The GDP growth forecast for the full year and the upcoming quarters is unchanged, but RBI’s forecast for Q1FY25 has been revised down to 7.1%. A poll conducted by Financial Express among economists suggests that Q1 growth, estimated at 6.7%, will be the lowest compared to the past five quarters. This slowdown is attributed to weaker manufacturing and agricultural activity, alongside a decline in government spending. The National Statistical Office (NSO) is set to release the Q1FY25 GDP data on August 30.
According to Trendlyne’s Results dashboard, more than 60% of the Nifty500 companies have reported positive net profit growth in their results for the quarter ending June 30. This edition of Chart of the Week looks at YoY growth in revenue and net profit across industries, and the biggest contributors here.
Exchanges & capital markets industry continue to outperform in Q1FY25
India’s capital markets have been on a consistent upward trajectory over the past few years, and the last quarter was no exception. Markets hit new highs, with Nifty50 near its all-time of 25,073 after rising 30% over the past year. Revenue growth in the industry has reached new highs with each passing quarter driven by rising investor confidence. According to Trendlyne’s Results Dashboard, the exchange industry witnessed its revenue double on a YoY basis in Q1.
For BSE, transaction charges—which make up more than half of the total revenue—soared by 5.6X YoY to Rs 366 crore. Revenue from equity derivatives also jumped to Rs 242 crore, compared to just Rs 1.6 crore in Q1FY24, thanks to a relaunch of derivatives in May last year. However, net profit declined 40.1% YoY to Rs 265.1 crore due to a higher base, which is evident on a QoQ comparison, where it surged 147.6%. Similarly, revenue for MCX India surged 52.3% YoY to Rs 253 crore, with net profit rising 464.2% YoY to Rs 111 crore due to a lower base in the corresponding quarter during the previous year.
The capital markets industry registered an overall revenue and net profit growth of 60.1% and 73.8% respectively, in Q1FY25. Firms like Motilal Oswal Financial Services, ICICI Securities and Angel One contributed significantly to this surge.
Consumer electronics and realty ride the tide of better living standards
The consumer electronics industry saw average revenue growth of 51.7% YoY, while net profit surged 139.5%. Once considered a luxury, room air-conditioners (AC) have become mainstream as summers get hotter. AC manufacturers like Voltas and Blue Star reported net profit growth of 158.5% and 102.6% respectively in Q1FY25, driven by high demand. None of the above-mentioned companies were able to keep up with the rising demand in the peak summer months of April to June. This led them to announce huge capex in FY25 in a bid to double their manufacturing capacity by FY26, to prepare for the next summer.
Another consumer electronics front-runner, Dixon Technologies saw revenue and net profit almost doubled on a YoY basis in Q1FY25 driven by the Make in India initiative. The rise in sales was driven by their mobile and electronic manufacturing services (EMS) division. This division saw revenue growth of 189% YoY to Rs 5,192 crore, and contributed 79% to the total revenue in Q1FY25, compared to 55% during the same period last year.
Meanwhile, the realty industry had a mixed performance in Q1FY25, with both winners and losers. However, the industry registered an average revenue and net profit growth of 24.9% and 140.6% respectively. Firms like Macrotech Developers, Oberoi Realty and Brigade Enterprises contributed significantly to the growth of the industry.
Gems & jewellery industry moderates in Q1, while the movies & entertainment industry witnesses a decline
Industry leader, Titan saw its revenue moderate in Q1FY25 driven by rising gold prices which led to subdued demand. Meanwhile, Kalyan Jewellers India and Senco Gold saw their net profit surge 23.5% and 85.3% respectively on a YoY basis driven by healthy same-store-sales growth and new store additions. On the contrary, Rajesh Exports’ share price continues to hit new lows as its net profit falls to 96.2% YoY to Rs 12 crore due to high operating costs.
The movies and entertainment industry also registered a decline in their business owing to general elections and a cricket-heavy season which resulted in a 13% YoY drop in movie releases. PVR INOX’s revenue and net profit declined on a YoY basis by 8.8% and 119% respectively in Q1FY25. Similarly, Prime Focus’ revenue and net profit declined on a YoY basis by 32.8% and 75.3% respectively.
Healthcare facilities & fertilizers industry show early signs of recovery
Both healthcare facilities and fertilizers industries reported average revenue moderation corresponding to the same quarter during the previous year but delivered positive net profit growth on a YoY basis in Q1FY25.
The healthcare facilities industry’s average revenue growth declined by 3.1% in Q1, but the net profit surged by 488% on a YoY basis. Apollo Hospitals Enterprise, Fortis Healthcare and Aster DM Healthcare contributed significantly to this surge in net profit. Apollo Hospitals witnessed growth across all segments, driven by higher occupancy and outpatient volumes. Similarly, Fortis’ occupancy increased from 64% in Q1 last year to 67% in Q1FY25 leading to higher revenue per occupied bed.
Similarly, the fertilizer industry saw its average revenue growth decline by 5.7% in Q1FY25, however, net profit surged 12% YoY driven by forecasts of a good monsoon this year. National Fertilizers and Chambal Fertilisers & Chemicals saw moderate revenue growth, but net profit rose 92.8% and 32.4% respectively on a YoY basis.
