The Reserve Bank of India today released, on its website, data relating to the performance of non-financial private corporate business sector during 2014-15.

Highlights:

• Sales/Revenue

• Sales performance of services (non-IT) improved in 2014-15 compared with previous year (Table 2A). Similarly, mining and quarrying industry group also recovered in 2014-15 (Table 5A).

• However, decline in performance of the manufacturing and IT sector, (Table 2A) pulled down aggregate sales growth of non-Government non-financial companies in 2014-15 (Table 1A). In particular, petroleum products industry group recorded a sharp contraction in sales growth.

• Expenditure: Reduction in the growth rates of raw material expenses and staff cost caused a decrease in aggregate expenditure growth in 2014-15 (Table 1A).

• EBITDA (Earnings before Interest Tax, Depreciation and Amortisation) increased at the aggregate level (Table 1A) due to improved performance of services (non-IT) sector (Table 2A).

• Y-o-Y growth in interest expenses dropped at the aggregate level and also across sectors. (Table 1A, 2A).

• At the aggregate level, interest coverage ratio (earnings before interest and tax/interest expenses) hovered around the same level (Table 1B).

• Net Profit

• Net profit continued to contract in 2014-15 (Table 1A), but at a lower rate compared with previous year due to huge improvement in services (non-IT) sector (Table 2A).

• Pricing power, as measured by EBITDA margin remained range-bound (Table 1B). Net profit margins remained at similar levels at the aggregate level and improved for services (non-IT) sector (Table 2B).

An article analysing the performance of the non-financial private Corporate Business Sector during 2014-15, along with the evolving trend in sales, expenditure and profit margins of the corporate sector over a longer horizon, will be published in October 2015 issue of the RBI Bulletin.

The data compiled are based on abridged financial results of 2,925 listed non-government non-financial (NGNF) companies. To facilitate comparison, similar data pertaining to 2013-14 are also presented. Coverage of companies over the years varies to some extent, depending on the date of declaration of results; however, it 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.

Sangeeta Das
Director

Press Release : 2015-2016/552

Links to Previous Data Releases