Latest news with #Nifty-500
Hans India
04-07-2025
- Business
- Hans India
Corporate bottom line growth 3x of GDP
Mumbai: India Inc has shown remarkable financial strength over the last five years, with corporate profits growing nearly three times faster than the country's GDP between FY20 and FY25, a new report said on Thursday. The profit-to-GDP ratio has risen significantly to 6.9 per cent -- reflecting strong earnings performance despite economic challenges, according to the data compiled by Ionic Wealth (Angel One). The report, titled 'India Inc. FY25: Decoding Earnings Trends & Path Ahead', highlights that FY25 was a resilient year for Indian companies. Revenue of Nifty-500 firms grew by 6.8 per cent year-on-year (YoY), while EBITDA rose by 10.4 per cent and profit after tax (PAT) increased by 5.6 per cent. Notably, mid-cap and small-cap companies outshined large-cap firms in terms of profit growth, recording 22 per cent and 17 per cent PAT growth respectively, compared to just 3 per cent for large caps. Sector-wise, BFSI (banking, financial services and insurance) emerged as a major driver of profitability, with its share of total profits nearly doubling since the capital goods, and consumer durables also posted healthy earnings growth. Consumer durables led with a massive 57 per cent PAT growth in FY25, followed by healthcare at 36 per cent and capital goods at 26 per cent, as per the also benefited from margin improvements in sectors such as cement, chemicals, metals, and auto, helped by easing inflation and better input cost management. The report also points to a significant jump in capital expenditure plans. India Inc. aims to nearly double its capex to Rs72.25 lakh crore during FY26–30, with a majority of the investment expected to be self-funded. Around 80 per cent of this capex is focused on upgrading existing operations and generating new income, with sectors like power, green energy, telecom, auto, and cement leading the next wave of investments. Looking ahead to FY26, the outlook varies by sector. Banks and NBFCs may see loan growth stabilise as interest rates are expected to ease in the second half of the year. The IT sector is likely to witness a recovery, driven by cost-optimisation deals and demand from BFSI clients. Pharma growth will be supported by expansion in chronic therapies and hospital networks, while the FMCG sector is expected to benefit from improving rural demand and a good monsoon, the report said.
Economic Times
27-06-2025
- Business
- Economic Times
New tax audit limit rule for CAs to apply from April 2026: ICAI president
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Popular in Services 1. ICAI bullish on GCC opportunities for chartered accountants The Institute of Chartered Accountants of India (ICAI) will enforce from April 2026 its new guidelines on allowing a partner of an accounting firm to take up a maximum of 60 tax audits in a year, its president Charanjot Singh Nanda said on per extant guidelines, while a single chartered accountant operating on their own can undertake up to 60 tax audits in a fiscal year, a partnership firm, as a whole, is allowed to conduct audits up to the combined limit of all its often results in senior partners at these firms using the quota of their junior colleagues after exhausting their own new guidelines would discourage a concentration of audit assignments with only a few senior partners at accounting firms and curb any anti-competitive conduct, Nanda had indicated to ET earlier this ICAI, Nanda said on Friday, expects the number of global capability centres (GCCs) in the country to nearly triple in the next two years to exceed 5,000, riding a was speaking at a GCC summit being hosted by the institute on June 27-28 in the national capital. This summit will also be organised in Ahmedabad, Mumbai and Hyderabad between August 2025 and February chartered accountants will gain from the boom in GCCs, thanks to various services that they offer, Nanda said."India is an attractive destination for GCCs," he said. Currently, about 80,000 chartered accountants (CAs) are employed at the GCCs in the institute has extended the deadline for stakeholders' comment on its draft overseas networking guidelines for domestic chartered accountant firms to July 16 from June has reported this month that the draft guidelines will enable domestic CA firms to tie up with their global peers and set up units in the idea is to facilitate the creation of large home-grown audit firms akin to the 'Big Four' by enabling domestic firms to grow big and also acquire expertise through global framework, once notified, would also require local firms that are already affiliated with global accounting entities to register with the ICAI, which is empowered to issue such there is no formal framework governing such global tie-ups. Those with foreign tie-ups were earlier required to submit certain details with the ICAI by submitting a form, which was discontinued four years ago, as a formal framework on this was sought to be present, the Big Four—EY, Deloitte, KPMG, PwC—along with Grant Thornton and BDO dominate the Indian audit ecosystem, with their affiliates having handled assignments of 326 of the 486 Nifty-500 companies as of March 2025, according to a report.
Time of India
27-06-2025
- Business
- Time of India
New tax audit limit rule for CAs to apply from April 2026: ICAI president
The Institute of Chartered Accountants of India (ICAI) will enforce from April 2026 its new guidelines on allowing a partner of an accounting firm to take up a maximum of 60 tax audits in a year, its president Charanjot Singh Nanda said on Friday. As per extant guidelines, while a single chartered accountant operating on their own can undertake up to 60 tax audits in a fiscal year, a partnership firm, as a whole, is allowed to conduct audits up to the combined limit of all its partners. This often results in senior partners at these firms using the quota of their junior colleagues after exhausting their own limit. The new guidelines would discourage a concentration of audit assignments with only a few senior partners at accounting firms and curb any anti-competitive conduct, Nanda had indicated to ET earlier this month. The ICAI, Nanda said on Friday, expects the number of global capability centres (GCCs) in the country to nearly triple in the next two years to exceed 5,000, riding a boom. He was speaking at a GCC summit being hosted by the institute on June 27-28 in the national capital. This summit will also be organised in Ahmedabad, Mumbai and Hyderabad between August 2025 and February 2026. India chartered accountants will gain from the boom in GCCs, thanks to various services that they offer, Nanda said. "India is an attractive destination for GCCs," he said. Currently, about 80,000 chartered accountants (CAs) are employed at the GCCs in the country. Creating domestic 'Big Four' The institute has extended the deadline for stakeholders' comment on its draft overseas networking guidelines for domestic chartered accountant firms to July 16 from June 27. ET has reported this month that the draft guidelines will enable domestic CA firms to tie up with their global peers and set up units in the country. The idea is to facilitate the creation of large home-grown audit firms akin to the 'Big Four' by enabling domestic firms to grow big and also acquire expertise through global tie-ups. This framework, once notified, would also require local firms that are already affiliated with global accounting entities to register with the ICAI, which is empowered to issue such guidelines. Currently, there is no formal framework governing such global tie-ups. Those with foreign tie-ups were earlier required to submit certain details with the ICAI by submitting a form, which was discontinued four years ago, as a formal framework on this was sought to be introduced. At present, the Big Four—EY, Deloitte, KPMG, PwC—along with Grant Thornton and BDO dominate the Indian audit ecosystem, with their affiliates having handled assignments of 326 of the 486 Nifty-500 companies as of March 2025, according to a report.
Time of India
13-06-2025
- Business
- Time of India
India corporate profits hit 17-year high in FY25; profit-to-GDP ratio rises to 4.7%: Motilal Oswal report shows
NEW DELHI: Indian corporate profits hit a remarkable 17-year high in FY25, with Nifty-500 companies achieving a profit-to-GDP ratio of 4.7%, according to a report by Motilal Oswal. "In 2025, the corporate profit-to-GDP ratio for the Nifty-500 Universe remained at 4.7%, marking a 17-year high," the report said. For all listed companies, the ratio stood even higher at 5.1%, the highest level seen in 14 years, it added. The sustained increase in profit-to-GDP ratio received support from various sectors' strong performance. Notably, Telecom shifted from a seven-year negative contribution to positive territory in FY25. Additional positive contributions came from PSU Banks (0.07%), Healthcare (0.04%), Consumer (0.04%), Metals (0.03%), and Infrastructure (0.2%). Conversely, several sectors experienced decreases in their profit-to-GDP ratio share. Oil & Gas showed the largest reduction at 0.28%, followed by Automobiles (0.03%), Cement (0.02%), Utilities (0.02%), Private Banks (0.01%), and Retail (0.01%). Nifty-500 companies demonstrated resilience with 10.5% year-on-year profit growth in FY25, building upon FY24's 30.5% increase and achieving a five-year CAGR of 30.3%. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo "The corporate profits for the Nifty-500 universe experienced double-digit growth, rising 10.5% YoY in FY25," the report added. These results were achieved despite weak consumption, reduced government expenditure during election-related first half, and export volatility amidst global uncertainty. The overall listed companies' profit-to-GDP ratio increased marginally from 5.0% in FY24 to 5.1% in FY25. Including both listed and unlisted firms, the ratio had increased to 7.3% in FY24 from 6.3% in FY23. Ownership analysis revealed private companies within Nifty-500 reached a record profit-to-GDP ratio of 2.8% in FY25, up from 2.4% in FY24. Private companies in the Nifty-500 hit a record profit-to-GDP ratio of 2.8% in FY25, up from 2.6% in FY24, according to a Motilal Oswal report. Public sector units (PSUs) saw a slight dip to 1.6% from 1.8%, while multinational companies (MNCs) posted their highest-ever ratio of 0.31% in FY25, up from 0.29% last year. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
India Gazette
13-06-2025
- Business
- India Gazette
India Inc's corporate profits reach 17-year high in FY25: Motilal Oswal
New Delhi [India], June 13 (ANI): Corporate profits in India reached a significant milestone in FY25, with the profit-to-GDP ratio for the Nifty-500 companies standing at 4.7 per cent, marking a 17-year high, according to a report by Motilal Oswal. For the listed Indian companies, this ratio was even higher at 5.1 per cent, a 14-year high. It said, 'In 2025, the corporate profit-to-GDP ratio for the Nifty-500 Universe remained at 4.7 per cent, marking a 17-year high'. The report stated that the sustained rise in the profit-to-GDP ratio was supported by strong performance in several key sectors. Telecom, which had been a negative contributor for the past seven years, turned positive in FY25. Other sectors contributing to the rise included PSU Banks (which added 0.07 per cent to the ratio), Healthcare (0.04 per cent), Consumer (0.04 per cent), Metals (0.03 per cent), and Infrastructure (0.2 per cent). However, some sectors saw a drop in their share of the profit-to-GDP ratio. Oil & Gas saw the biggest decline of 0.28 per cent, followed by Automobiles (0.03 per cent), Cement (0.02 per cent), Utilities (0.02 per cent), Private Banks (0.01 per cent), and Retail (0.01 per cent). Despite a challenging environment, corporate profits for the Nifty-500 companies grew by 10.5 per cent year-on-year in FY25. This double-digit growth is notable as it comes on a high base of 30.5 per cent in FY24 and represents a strong 30.3 per cent CAGR over the past five years. It said, 'The corporate profits for the Nifty-500 universe experienced double-digit growth, rising 10.5 per cent YoY in FY25'. The report highlighted that this performance was achieved during a year marked by weak consumption, a slowdown in government spending during the first half due to elections, and volatile exports amid global uncertainties. For the overall listed universe, India's corporate profit-to-GDP ratio rose slightly from 5.0 per cent in FY24 to 5.1 per cent in FY25. When including both listed and unlisted companies, the ratio had already seen a sharp jump to 7.3 per cent in FY24 from 6.3 per cent in FY23, mainly due to the spike in profits of listed firms. The report also analysed corporate profits based on ownership. Among private companies within the Nifty-500, the profit-to-GDP ratio reached an all-time high of 2.8 per cent in FY25, up from 2.6 per cent in FY24. For PSUs, the ratio declined slightly to 1.6 per cent from 1.8 per cent a year ago. Meanwhile, MNCs recorded their highest-ever ratio of 0.31 per cent in FY25, up from 0.29 per cent in FY24. (ANI)
