The Reserve Bank of India today released, on its website, the data on the performance of non-financial private Corporate Business Sector during 2012-13.

The data compiled are based on the abridged financial results of 2,931 listed non-government non-financial (NGNF) companies. To enable comparison, similar data pertaining to 2011-12 are also presented. Coverage of companies over the years varies to some extent, depending on date of declaration of results, but is not expected to alter the aggregate position significantly. ‘Explanatory Notes’ containing the brief methodology followed for compilation of data and the glossary of terms are given at the end.

Highlights:

• The sales growth of the private (non-financial) corporate business sector further moderated during 2012-13.

• Although EBITDA growth improved and net profit contraction was of lower order, margins continued to contract in 2012-13.

• All three sectors (viz., manufacturing, services other than IT and IT) exhibited lower sales growth. EBITDA margin declined for manufacturing and services other than IT sectors. Some improvement was noticed for the IT sector.

• Interest expenses as percentage of sales increased across all sectors and size classes.

• Small companies (sales up to `1 billion) witnessed a persistent contraction of sales since 2008-09 and rates of contraction worsened over the years. Sales of large companies also moderated sharply in 2012-13.

• Most of the industries followed the general trend of lower sales growth and lower profit (EBITDA) margins in 2012-13 as compared to 2011-12. Among major industries, machinery, motor vehicles and cement industries in the manufacturing sector witnessed significant decline in sales growth. EBITDA growth improved for the iron & steel industry and declined sharply for the cement industry. Motor vehicles, construction and machinery industry witnessed contraction in EBITDA levels. EBITDA margins contracted for all these industries.

Sangeeta Das
Director

Press Release : 2013-2014/505