Mumbai, Covid-19 gave a heavy blow to corporate India's financial performance in Q4FY20 as absolute earnings contracted by 22 per cent on YoY basis, an ICRA analysis showed on Thursday.

The analysis based on financial results of 184 companies excluding financial sector entities, showed that Indian corporate sector, which was already reeling under the impact of multiple headwinds since the beginning of the FY20, faced a major blow in the form of the Covid-19 pandemic outbreak.

According to the analysis, a YoY and sequential contraction was seen in revenues with aggregate revenues contracting by 2.9 per cent on a YoY basis in Q4FY20.

"During the same period, the EBITDA margin contracted by 30 bps on a YoY basis, and by 120 bps sequentially to 16.8 per cent, while PBT margins fell to multi-quarter lows of 7.1 per cent," the analysis report said.

"Absolute earnings of the Corporate India contracted by 22 per cent and 12 per cent in Q4FY20 and FY20, respectively."

Furthermore, the analysis report revealed that the impact is expected to be even more pronounced during Q1FY21, given the stringent two-month long nation wide lockdown in the country during the quarter.