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About 3,000 Companies Post Up To 130% Rise In Profit Amid Pandemic & Lockdown

by GoNews Desk 4 months ago Views 1865

About 3,000 Companies Post Up To 130% Rise In Prof
The assessment of the economic damage caused by the COVID-19 pandemic and the resulting lockdown is underway in the country. However, another picture has emerged following a look at the accounts of most companies. According to a survey by Capitaline, an agency reporting on economic activity, companies' profits in the September quarter of this fiscal rose 129% in contrast with the September quarter of last fiscal. July, August and September were the months when the economic activities were resumed after a complete shutdown.

At that time, companies were minting money even by selling fewer goods.


According to the Capitaline figures, the net profit of the 3000 companies surveyed declined by 40.2% to Rs 77,342 crore in the September quarter of 2019, while it rose 129.4% in the September quarter of this year to cross Rs 1,077 crore.

However, during this time these companies were selling less than before. For example, in the September quarter of 2019, the sales of these companies fell by 1.42% and the total sales figure was Rs 21,24,000 crore. On the other hand, companies' sales fell 5.5% in the September quarter of this year and the total sales figure reached Rs 20,07,000 crore.

Put simply, though the sales were low, the profits have been increasing, mainly due to stalled economic activity during the lockdown. In fact, during the lockdown, many companies put a stop to their expenses, such as rent, salary and raw materials. After cutting expenses on all these things, companies started saving more money in the account and even though their sales have decreased, their profit has increased.

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