Today, the Reserve Bank of India released on its website (https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics#!2_43) data relating to the performance of non-government non-banking financial and investment (NGNBF&I) companies excluding insurance and banking companies, for 2016-17.

The data have been compiled on the basis of audited annual balance sheets and profit and loss accounts of 21,140 NGNBF&I companies accounting for 76.2 per cent of total paid-up capital (PUC) of all NGNBF&I companies as on March 31, 2017. The data have been presented for the three-year period 2014-15 to 2016-17 to facilitate comparison. Explanatory notes pertaining to the statements are also released.

Major Highlights:

• Financial income of the select NGNBF&I companies recorded marginally lower growth in 2016-17, than in the previous year, mainly due to lower growth in interest income.

• Driven by higher interest expenses and staff costs, total expenditure grew at a faster rate in 2016-17 than in the preceding year.

• Operating profits (EBDT) growth plummeted in 2016-17, mainly due to poor performance of the companies engaged in loan finance activity.

• Similarly, operating profit margin (measured as a ratio of operating profits to financial income) and return on equity (measured as a ratio of net profits to net worth) at the aggregate level declined in 2016-17 from the corresponding levels in 2015-16.

• Total borrowings grew at a higher rate in 2016-17, leading to a rise in the leverage (measured by the debt to equity ratio) for the select NGNBF&I companies.

• However, borrowings from banks by these companies decelerated significantly in 2016-17, with the exception of share trading and investment companies.

• Net worth of the companies across all activity groups improved during 2016-17 as compared with the previous year.

Ajit Prasad
Assistant Adviser

Press Release : 2018-2019/79