Total sales inflation of listed private non-financial companies stood at 6.9 percent in the April-June quarter of the current financial year (FY25), compared with 2.1 percent growth in the year-ago period. The data from the Reserve Bank of India (RBI) issued.
Sales inflation in the last quarter (January-March) of FY24 was 6.9 percent.
Private corporate business sector performance data for Q1 FY25 shows that net profit of listed non-government non-financial companies grew 14.2 per cent, from 9 percent in the year-ago period, and 6.4 percent in Q4 FY24 . , The analysis is based on quarterly financial results of 2,934 listed non-government non-financial companies.
All major sectors, manufacturing (67.5 percent share in total sales), information technology (IT) (10.1 percent), non-IT services (12.8 percent), construction (5.3 percent) power (2.9 percent) and mining remained the largest in the same quarter last year. (1.1 percent) more sales were recorded than.
The data shows that in the manufacturing sector, there has been a decline in sales of cement, iron and steel, fertilizers, paper products and glass products.
In FY24, the annual sales inflation rate of listed private non-financial companies plunge 4.7 percent from 19.8 percent in FY23. On the expenditure front, expenditure on raw materials by manufacturing companies expansion by 6.4 per cent (y-o-y) in line with their sales growth, while their staff costs recorded a higher growth of 10.7 percent during Q1 FY25; Staff costs of IT and non-IT services companies increased by 2.4 percent and 12.8 percent, respectively.
The employee cost to sales ratio for manufacturing, IT and non-IT services companies during Q1FY25 stood at 5.8 percent, 49.1 per cent and 11 percent, respectively. Operating profit of the private corporate business sector expansion by 9.6 per cent in Q1 FY25, compared to 5.3 percent in the same quarter last fiscal.
Operating profits of manufacturing, IT and non-IT services companies grew by 9.3 percent, 5.1 percent and 6 percent respectively during the first quarter of 2024-25 and their operating profit margins stood at 14.6 percent, 22.5 per cent and 21.4 percent, respectively. Percentage, respectively.
The interest coverage ratio (ICR) of manufacturing and non-IT companies improved marginally to 7.9 and 1.8 percent respectively during the latest quarter. ICR of IT companies remains high at 42.9 percent. ICR, which is the ratio of earnings before interest and taxes to interest expense, is a measure of a company’s debt service ability. The minimum value for a viable ICR is 1.
Private corporate sector sales upgrade 6.9%; Net profit rose 14.2% in April-June: RBI data
