Today, the Reserve Bank released data on the performance of the private corporate sector during 2022-23 drawn from abridged financial results of 3,115 listed non-government non-financial (NGNF) companies on its Database on Indian Economy (DBIE) portal (web-link: https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics#!2_42). Corresponding data pertaining to 2021-22 are also presented in the tables to enable comparison.

Highlights

Sales

• During 2022-23, listed private non-financial companies recorded sales growth (y-o-y) of 19.8 per cent, where manufacturing sector recorded 18.0 per cent growth, mainly led by automobiles, petroleum, and chemical industries (Tables 1A, 2A and 5A).

• Information technology (IT) sector sustained its high growth momentum and the performance of non-IT services companies improved further during 2022-23, led by robust growth in trade and transport sector (Tables 2A and 5A).

Expenditure

• Improved demand conditions and commensurate sales growth led to increase in manufacturing companies’ expenses on raw material and employees (Table 2A).

Interest

• Interest outgo increased for all three major sectors during the year (Table 2A).

• The interest coverage ratio (ICR)¹ of manufacturing companies moderated to 7.3 in 2022-23 from 8.4 in 2021-22, due to rise in interest expenses; ICR for non-IT services sector crossed unity, where all subsectors except telecom group had viable ICR level (Tables 2B and 5B).

Profit

• Profit margins of manufacturing and IT companies moderated during 2022-23; for non-IT services companies, operating profit margin remained stable, but they continued to record losses on a net basis (Table 2B).

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.

Ajit Prasad           
Director (Communications)

Press Release: 2023-2024/486

¹ ICR (i.e., ratio of earnings before interest and tax to interest expenses) is a measure of debt servicing capacity of a company. The minimum value for a viable ICR is 1.