Sales growth of pvt financial cos improves in Q1: RBI

Written By Unknown on Rabu, 24 September 2014 | 23.25

The sales growth of the companies (2,768 firms) had registered growth of 2.6 percent at Rs 7.25 lakh crore in Q1-FY14. "Improvement in sales growth was observed only in manufacturing sector, while it contracted in the services (non-IT) sector.

Sales growth of listed private finance companies improved in the first quarter of 2014-15 at Rs 7.63 lakh crore, up 7.1 per cent, as manufacturing sector showed good performance, as per RBI data released today. The RBI data compares 2,755 listed non-government non-financial in the first quarter (April-June) of FY15 over 2,768 firms studied in the same period in the previous fiscal.

The sales growth of the companies (2,768 firms) had registered growth of 2.6 percent at Rs 7.25 lakh crore in Q1-FY14. "Improvement in sales growth was observed only in manufacturing sector, while it contracted in the services (non-IT) sector. Sales growth declined in the IT sector," RBI said.

In the manufacturing sector, the sales growth was 8.9 percent at Rs 5.71 lakh crore in first quarter of current fiscal, an improvement over 0.8 per cent growth at Rs 5.32 lakh crore a year ago. In Q1-FY15, the sales growth in services sector contracted by 1 percent to Rs 72,000 crore and in IT sector it grew by 12.3 percent to Rs 63,300 crore.

The corresponding figures in the year ago period for services and IT sector at Rs 73,300 crore (up 10.8 percent) and Rs 56,400 crore (up 13.2 percent). The net profit of these companies grew by 27.3 percent year-on-year at Rs 51,200 crore in Q1-FY15. However, profits were contracted by 10.9 percent to Rs 37,600 crore in the first quarter of FY14.

RBI data showed that the overall expenditure growth increased at Rs 6.59 lakh crore, up 6.1 percent due to higher growth in raw material expenses. However, growth in staff cost
declined during the quarter under study in Q1-FY15. Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) growth noticeably increased at the aggregate level, to Rs 1.07 lakh crore, up 16.5 percent. In the year ago period the EBITDA grew by 1.1 percent to Rs 91,900 crore.


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