Office Address
123/A, Miranda City Likaoli Prikano, Dope
Phone Number
+0989 7876 9865 9
+(090) 8765 86543 85
Email Address
info@example.com
example.mail@hum.com
123/A, Miranda City Likaoli Prikano, Dope
+0989 7876 9865 9
+(090) 8765 86543 85
info@example.com
example.mail@hum.com
While the growth in
revenue was moderate, the earnings before interest, taxes, depreciation, and
amortization (EBIDTA) and profit after tax (PAT) saw a robust increase of 28
per cent and 32 per cent, respectively. It
said, "Around 4000 listed entities reported 6 per cent growth in top line
in FY24, while EBIDTA and PAT grew by 28 per cent and 32 per cent,
respectively. However, Employee expenses grew by only 13 per cent in FY24 as
compared to 17 per cent in FY23".
Interestingly, the
report highlighted a notable moderation in employee expenses. Employee costs
grew by only 13 per cent in FY24, a decline from 17 per cent recorded in FY23.
This suggests that companies are focusing on optimizing their wage bills while
maintaining profitability.
Over the past four years, the report stated that
the Indian companies have consistently maintained an average EBIDTA margin of
22 per cent. During the same period, the average annual growth in wage bills
has been around 12 per cent. This reflects a careful modulation of employee
expenses and other cost components, ensuring a healthy margin of safety.
A detailed analysis of
the expenditure side using the weighted average contribution model revealed
that apart from the cost of goods sold (COGS)--which is impacted by commodity
price fluctuations--employee expenses play a significant role in determining
EBIDTA.
The weighted average
negative contribution of employee expenses to EBIDTA growth declined to 7 per
cent in FY24 from 8.6 per cent in FY23. This indicates improved cost management
by companies. Even in the second quarter
of FY25, listed companies reported a 7 per cent growth in EBIDTA, while the
wage bill grew at a slower pace of 5.6 per cent.
The report highlights how Indian corporations are
balancing growth in revenues and profits with careful cost management. This
moderation in wage growth, alongside consistent profitability, reflects a
strategic approach to sustaining margins in a volatile economic environment.
