Profit of auto, realty, hospitality sector increased by 20%

The demand for vehicles, houses, electricity and tourism is increasing rapidly in the country. For this, the offtake of loans from banks has also increased. This was the reason that the sales and profit of automobile, realty, bank, power, hospitality and paper companies increased by 20-20 percent in the October-December quarter. This is much better than the average performance of the domestic corporate sector.
So far, the results of more than 2,000 companies have come for the December quarter. Their sales increased by 16.1%, but profits increased by an average of only 5.3%. This was due to an 18.0% increase in corporate expenses and a 24.9% increase in interest. Sales of these companies grew by 24.3% and profits by 35.9% in the same quarter a year ago.
According to a research report by the Bank of Baroda on Wednesday, the wide difference in sales and profit figures is due to the base effect. For example, due to the decrease in sales and profit in the financial year 2020-21, during 2021-22, the figure of a slight increase in this matter also seems to be very big.
Bank of Baroda Chief Economist Madan Sabnavis said that there was a sharp increase in both sales and profit of real estate companies in the last quarter. According to him, the business of affordable housing grew at par with premium properties. Due to this, the demand for home loans increased rapidly, which benefited the banks.
According to the report, the sales of IT companies increased by 19.3% in the third quarter of the current financial year. However, their sales had increased by 23.3% in the same quarter of the previous financial year. According to analysts, this means that the slowdown in developed markets like Europe and the US has had a marginal impact on the Indian IT sector.