RBI releases data on the performance of private industries during Q1FY22

The Reserve Bank of India (RBI) has released data on the performance of the private corporate sector during the first quarter of the current financial year 2021-22. The data on the performance of the private corporate sector during the first quarter of 2021-22 is drawn from abridged quarterly financial results of 2,610 listed non-government non-financial (NGNF) companies.

Data says, sales of 1,647 manufacturing companies have registered massive growth of 75 per cent (YoY), which was -41.1 per cent in the same quarter of last financial year, reflecting the COVID-19 pandemic impact on operations; all the major sectors recorded high growth during the quarter. In absolute terms, the sales of the manufacturing companies worked out at Rs 7,02,791 crore as against Rs 3,97,233 crore in the first quarter of FY2020-21.

RBI said, all the major sectors recorded high growth during the quarter.

Sales of IT companies increased by 17.5 per cent (YoY) as compared to 6.4 per cent last year. In absolute terms, the sales were worth about Rs 1,13,807 crore. Sales of the non-IT services companies also surged YoY in Q1FY22 but the revenues of telecom companies within this group declined. In absolute terms, the sales stood at Rs 97,751 crore in Q1FY22 against Rs 93,318 crore posted in Q1FY21.

To meet sales demand, companies have increased their expenditure on raw materials during Q1FY22. It adds staff cost growth (y-o-y) accelerated for all sectors during Q1FY22. The rise in sales has also impacted positively on profits of these companies and high growth is reported in profit of IT and non-IT companies.

As per RBI, operating profits of the manufacturing, as well as services sector companies (both IT and non-IT companies), recorded high growth during the quarter. The Interest coverage ratio (ICR) of manufacturing companies remained steady at 7.5 in Q1FY22 (7.3 in the previous quarter). The ICR of non-IT services companies remained below unity.

In the context of the pricing power, RBI in its report says, the operating profit margin remained stable for manufacturing and IT companies during the quarter, but it moderated for the non-IT services companies.