Post-Covid, profits rise faster than investment

MUMBAI: Corporate profits have recovered much faster than investment after the pandemic, with aggregate profit before interest and tax (PBIT) growing 21.4% in FY24 against 6.1% growth in gross fixed assets (GFA), an Economic Advisory Council to the Prime Minister working paper has found.

Profitability itself has risen too. Median return on assets (ROA) in the study sample increased from 4.4% in FY21 to 7.2% in FY24.