MUMBAI: Just five sectors account for more than three-fourth of India Inc ’s profits amidst a drastic change in the business environment over the past five years that has been impacted by market volatility, digital disruption and mounting debt with Indian banks.Sectors such as IT, automotive, utilities, healthcare and auto-component — contributed three fourths or nearly Rs 27 lakh crore to the bottom-line in 2015 compared to 38% five years ago, according to Kanvic Consulting that analysed India's top 1,000 listed companies and 50 performance variables.In 2010, the total profit pool was Rs 1.88 lakh crore. “We have identified three critical factors that have transformed the environment for growth in India in recent years: a volatile and uncertain macro scenario, digital disruption and the debt trap.India is becoming increasingly integrated into the global economy creating greater complexity for business and has become a hotbed for digital disruption on the back of innovation and risk capital,” said Deepak Sharma, director of Kanvic Consulting, adding that companies that pursued aggressive growth improved profitability even in a challenging business environment during the last five years.Several industry honchos across sectors said corporates have to undergo a process of organisational transformation to become more responsive in the face of these changes and adopt an agile stance to act faster in the face of new threats and opportunities.“We believe every Indian company will need to put digitalisation at the heart of their future strategy as it will play a decisive role in driving future growth across industries,” said RC Bhargava , chairman, Maruti Suzuki To be sure, several other sectors too increased profits each year, but losses by a few heavyweights dragged the overall performance. The study drew upon scores of interviews with C level executives in Indian companies who have led their organisations through the challenging years. Sectors that recorded a drop in contribution to profit growth include capital goods, construction, chemicals, metals & mining, telecom and textiles and fashion.The slowdown in the global economy impacted most commodity businesses such as metals ores and textiles, while high fiscal deficit has led to a crisis in the infrastructure sector. The banking industry has taken a very big hit in profitability to make provision for high NPAs and the rural economy is reeling from the third successive drought. “While urban consumption is driving growth, it is the digital revolution that is contributing significantly.And as economies look for efficiency in difficult times they are relying heavily on IT,” said Venu Srinivasan , chairman of TVS Motor , adding that companies first need to reset assumptions about how the external environment might change in the coming years. On the other hand, declining input costs, weakening yen and depreciating rupee and growing exports have helped automobile companies significantly improve margins.The IT sector has also benefited from the rising dollar denominated sales and weakening rupee. Kiran Mazumdar Shaw , chairman of Biocon said, a large part of the pharma sector contribution to profits had to do with exports.“Almost 70% of the sector revenues are from exports today and the local market has to expand parallely too. The hospital sector has also grown quite fast. The telecom sector may have been commoditised to an extent impacting profit growth.”Sectors such as telecom suffered due to the growing competition and high debt burden pressurising margins. Though automobile companies recorded flat volume growth for three years, profitability grew as they became more efficient through various cost cutting measures.India Inc is betting heavily on good monsoon for an uptick in demand and capacity utilisation on the back of rural consumption.Household and personal care product makers continue to enjoy higher profits; their cumulative profit more-than-doubled in the past five years.However, their peers in food products saw higher raw material costs and increased marketing spends to attract consumers in the nascent packaged category, halving their profit in the said period. Naushad Forbes , president of CII and co-chairman of Forbes Marshall, says he sees different sectors recovering at different times.“The macroeconomic indicators are healthy but a few sectors aren’t in a good condition. Capital goods is now facing a lack of investments but it will turn around once existing capacities are absorbed and demand picks up. Similarly, construction companies will pick up once it comes out of an over leveraged situation, with many companies shifting from commercial and high end segment to medium and residential segment,” Forbes said.