GROWTH & VALUATIONS

1. FY22 (Post-COVID Recovery):

   • Sales Growth: 26%
   • Profit Growth: 50%
     The post-COVID recovery witnessed strong growth in both sales and profits due to pent-up demand and a low base effect. This period contributed to a significant market rally.

2. FY23 (Impact of Global Events):

   • Sales Growth: 21%
   • Profit Growth: 6%
     Inflationary pressures due to the Russia-Ukraine war significantly impacted profit margins. Despite moderate sales growth, profits were muted, causing market corrections during this period.

3. FY24 (Recovery and Growth):

   • Sales Growth: 8%
   • Profit Growth: 29%
     Recovery in sales and profitability led to renewed investor confidence and a market rally.

4. FY25 (Current Year Trends):

   • Q1:
     • Sales Growth: 9%
     • Profit Growth: 4%
   • H1:
     • Sales Growth: 10%
     • Profit Growth: 5%
       Muted sales growth and declining profit trends are evident. This reflects challenging market conditions, potentially due to high-interest rates, inflation, or subdued demand, resulting in market corrections.

Investor Takeaways:

• Post-COVID Surge: Take advantage of recovery periods with high growth due to low bases and demand surges.
• Global Headwinds: Monitor geopolitical events and inflationary pressures that can significantly affect profitability.
• Current Year Challenges: A cautious approach is advised as sales and profit growth are subdued, indicating slower economic momentum. Focus on sectors showing resilience or counter-cyclicality.

Investors should diversify and align portfolios with macroeconomic trends, focusing on quality companies with strong fundamentals for long-term growth.