Today, the Reserve Bank released data on the performance of the private corporate sector during 2019-20 drawn from abridged financial results of 3,0641 listed non-government non-financial (NGNF) companies. Data pertaining to 2018-19 are also presented in the tables to enable comparison. The data can be accessed at the web-link https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics#!2_42. Highlights Sales -
Sales of manufacturing companies declined by 7.4 per cent during 2019-20 as against 14.8 per cent growth in the previous year; this contraction in sales was broad based across industries (Table 2A and Table 5A). -
Service sector companies in the information technology (IT) and non-IT sectors recorded sales growth of 8.4 per cent and 6.9 per cent, respectively, during 2019-20 which was lower than their growth in the previous year (Table 2A); telecommunication and hospital sectors, however, recorded higher sales growth (Table 2A and Table 5A). Expenditure -
Subdued production related activities resulted in lower expenditure on raw materials by manufacturing companies during the year (Table 2A). -
Growth in staff cost remained steady for services (IT and non-IT) sector companies but decelerated for the manufacturing companies (Table 2A). Interest -
Interest expenses of services sector companies (IT and non-IT) surged during 2019-20 as the new accounting norms2 prescribed inclusion of lease payment obligations under this head (Table 2A). -
The interest coverage ratio (ICR)3 of manufacturing companies declined to 4.3 in 2019-20 from 5.4 in the previous year; ICR remained very high for IT companies but it slipped below the unity level for non-IT service companies (Table 2B). Profit - Subdued demand conditions resulted in 11.0 per cent decline in net profits of manufacturing sector companies during 2019-20 as against 42.2 per cent growth in the previous year and the net profits of the services (non-IT) sector companies remained in contraction; net profits of IT companies, however, increased (Table 2A).
| List of Tables | | Table No. | Title | | 1 | A | Performance of Listed Non – Government Non-Financial Companies | Growth Rates | | B | Select Ratios | | 2 | A | Performance of Listed Non-Government Non-Financial Companies - Sector – wise | Growth Rates | | B | Select Ratios | | 3 | A | Performance of Listed Non-Government Non-Financial Companies according to Size of Paid-up-Capital | Growth Rates | | B | Select Ratios | | 4 | A | Performance of Listed Non-Government Non-Financial Companies according to Size of Sales | Growth Rates | | B | Select Ratios | | 5 | A | Performance of Listed Non-Government Non-Financial Companies according to Industry | Growth Rates | | B | Select Ratios | | Explanatory Notes | | Glossary of Terms | Notes: - Explanatory notes containing the methodology followed for compilation of data, and the glossary (including revised definitions and calculations that differ from previous releases) are given at the end.
(Yogesh Dayal)
Chief General Manager Press Release: 2020-2021/363
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