Large-Cap Stocks drive growth in operating profits over the last three quarters

Operating profit, also known as operating income, is the profit a company makes from its core business activities, excluding expenses like interest and tax. A higher operating profit indicates strong operational performance and the ability to generate earnings from its primary activities. It reflects the company's ability to manage costs effectively. Consistent QoQ growth in operating profit is a positive indicator of a company's financial performance and potential for future growth.

Here are the top 6 large-cap stocks with sequential growth in operating profits in the previous 3 quarters

As per the company, the progress in profitability is a result of incremental improvements in scale, efficiency and durability of the business.

Suzlon Energy Ltd - The wind energy stock also witnessed a jump in operating profit in the previous 3 quarters from ₹248 crore in Q3FY24 to ₹370 crore in Q1FY25, a change of over 49%. The company reported robust growth on account of structural improvements such as strong commercial fundamentals and a fortified balance sheet with adequate working capital. According to the company, this was a major reason for the growth.

Indus Tower Ltd - The telecom tower company’s operating profit surged over 25% from Q3FY24 to Q1FY25. For the previous 3 quarters, the company witnessed sequential growth in operating profits.

As per management, the robust tower additions reaffirm the company's competitive strength in the passive infrastructure space. Business growth along with continued collection of past dues underpinned the strong financial performance of the company.

HDFC Life Insurance Ltd - The prominent life insurance company saw a 17% growth in operating income from ₹265 crore in Q3FY24 to ₹311 crore in Q1FY25.

The robust growth has been driven by comprehensive performance across all metrics which included market share expansion in private market share expanded from 16.4% in Q1FY24 to 17.1% in Q1FY25, Achieved 46% growth, bolstered by the higher sum assured multiples for savings products and strong rider attachment and aided by 28% growth in retail protection, and strong topline growth recorded across Tier 1, 2, and 3 geographies

Tata Consumer Ltd - The Tea producer also reported over 16% growth in operating profit from ₹572 crore in Q3FY24 to ₹677 crore in Q1FY25. Strong revenue growth, driven by value-added offerings, strengthening of sales and distribution infrastructure and growth in e-commerce channels support the operating performance.

Mahindra & Mahindra Ltd - The homegrown automaker also reported a 16% growth in operating profit from ₹6,224 crore in Q3FY24 to ₹7,243 crore in Q1FY25.

The operating profit improved on account of robust margin expansion across all businesses due to focused execution, said the management. Further, the highest ever quarterly tractor volumes retention market leadership in SUVs and gain in market share in farm businesses also helped to grow operating profit on a sequential basis.

Below table shows stocks (m-cap above ₹1 lakh crore) with a growth of over 15% in operating profit since the previous 2 quarters.

(Source- Screener.in)

Companies with strong growth in operating profits suggest strong stock price performance. Stocks like Zomato (247% growth) and Suzlon Energy (49% growth) have witnessed impressive increases in operating profit over the past three quarters. This indicates efficient cost management and strong core business performance, suggesting potential for future success.