Capital goods, pharmaceuticals and automotive sectors shine with strong profit growth in Q1

In the first quarter (Q1) of 2024-25 (FY25), the capital goods, pharmaceuticals and automotive sectors posted impressive growth rates of 25-34% to lead the way. Metals, banking, insurance, IT services and defence manufacturers also performed well. On the other hand, oil and gas, fast-moving consumer goods (FMCG) and cement companies lagged. Most sectors saw a year-on-year (YoY) expansion in operating profit margins, driven by lower raw material and labour costs, with the automotive and capital goods sector benefiting the most. However, oil and gas and FMCG companies reported a YoY margin decline. The banking, financial services and insurance (BFSI) sector, along with