Today, the Reserve Bank of India released on its website (https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics#!2_46) data relating to finances of foreign direct investment (FDI) companies for the year 2017-18. The analysis is based on audited annual accounts of select 7,314 companies accounting for 30.5 per cent of total paid-up capital (PUC) of such companies reported in the Reserve Bank’s Census on Foreign Liabilities and Assets of Indian Direct Investment Companies, 2017-18. Explanatory notes to the statements are given in the Annex.

Highlights

• A pick up in sales and moderation in input costs – primarily, staff expenses - boosted operating profit (Statement 2).

• Output, measured in terms of gross value added (GVA), moderated in 2017-18 mainly due to reduction in services sector GVA (Statement 2 and 8).

• Utilization of resources generated for gross fixed capital formation was around 40 percent in 2017-18 as compared with 20.5 percent in 2016-17 (Statement 6).

• Total borrowings of these companies accelerated in 2017-18, resulting in higher leverage across sectors (Statement 8 and 11).

• Companies’ debt serviceability as measured by the interest coverage ratio (ICR) or earnings before interest and taxes (EBIT) to interest expenses marginally improved in 2017-18 (Statement 3).

• Export intensity (measured as the exports to sales ratio) declined during 2015-16 through 2017-18 across sectors (Statement 11).

Notes:

1. Data for the finances of non-government non-financial (NGNF) foreign direct investment companies, 2016-17 are also released along with this data release.

2. The primary source of data is the Ministry of Corporate Affairs (MCA).

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/2890