Business

ET analysis: Surging corporate profits to help ease Reserve Bank’s inflation fight

Indian companies have lately boosted margins from the 2020 trough, but volumes have consistently trailed the exponential growth in operating profitability. India’s corporate profits to gross domestic product (GDP) ratio, which had fallen to below 2.5% toward the end of the last decade on deteriorating bank assets and higher input costs, has since recovered to near 4%. That’s still about a quarter below the levels seen before the 2008 global financial crisis.

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