Performance of Private Corporate Business Sector during 2022-23

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Published on June 27, 2023

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Performance of Private Corporate Business Sector during 2022-23

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).

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.

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.