Sales of manufacturing companies grow 27.3% in December quarter: RBI data

Maintaining their growth momentum, information technology companies recorded 20.7 per cent increase (y-o-y) in sales during the third quarter of 2021-22

Topics


Reserve Bank of India | manufacturing companies | RBI

Aggregate sales of 1,701 listed manufacturing companies recorded a growth of 27.3 per cent in the third quarter of 2021-22 on an annual basis, aided by high sales growth in petroleum, non-ferrous metals, iron and steel, chemicals and textiles industries, according to RBI data released on Monday.

RBI released the data on the performance of the private corporate sector during the third quarter of 2021-22 drawn from abridged quarterly financial results of 2,744 listed Non-Government Non-Financial (NGNF) companies.

“Sales of listed private non-financial companies increased (y-o-y) by 25.3 per cent in the third quarter of 2021-22 as compared with 31.8 per cent in the previous quarter and 4 per cent in the corresponding quarter a year ago,” the RBI said.

As per the data, aggregate sales of 1,701 listed manufacturing companies recorded steady growth (y-o-y) of 27.3 per cent, aided by high sales growth in petroleum, non-ferrous metals, iron and steel, chemicals and textiles industries.

In value terms, the sales of manufacturing companies stood at Rs 8,87,137 crore in the third quarter as against Rs 6,79,462 crore (1,685 companies). Their net profits stood at Rs 88,167 crore during October-December period of 2021-22 as against Rs 73,789 crore in the year ago quarter.

Maintaining their growth momentum, information technology companies recorded 20.7 per cent increase (y-o-y) in sales during the third quarter of 2021-22.

Further, sales of non-IT services companies expanded (y-o-y) by 22 per cent in the October-December period of 2021-22.

RBI said telecommunication companies, which account for nearly a fourth of this broad category, witnessed a marginal decline in sales but non-telecom companies recorded good growth.

On expenditure, the central bank said that in tandem with increase in sales, manufacturing companies’ expenditure on raw material increased year-on-year by 37.1 per cent. Expenses on raw material accounted for 63.3 per cent of their total expenditure.

“With rising expenditures, operating profit growth decelerated across sectors in the third quarter of 2021-22,” RBI said.

Also, pricing power in terms of operating profit and net profit margins remained stable for manufacturing and IT companies.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.


We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor