Today, the Reserve Bank released data on the performance of the private corporate sector during the fourth quarter of 2023-24 drawn from abridged quarterly financial results of 2,823 listed non-government non-financial companies. These also include comparable data for Q4:2022-23 and Q3:2023-24 to enable study of sequential (q-o-q) and annual (y-o-y) changes (web-link https://cimsdbie.rbi.org.in/#/dbie/reports/Statistics/Corporate%20Sector/Listed%20Non-Government%20Non-Financial%20Companies).
Highlights
Sales
Sales of listed private non-financial companies registered 6.9 per cent growth (y-o-y) in Q4:2023-24 as compared to 5.5 per cent growth in the previous quarter (8.0 per cent in Q4:2022-23) (Table 1A).
Aggregate sales growth (y-o-y) of 1,669 listed private manufacturing companies inched up to 6.1 per cent during Q4:2023-24 from 3.7 per cent during the previous quarter; aided by sales acceleration in automobiles, petroleum, electrical machinery and pharmaceuticals industries (Tables 2A and 5A).
Annual growth in sales of information technology (IT) sector moderated to 3.1 per cent in Q4:2023-24 from 3.2 per cent in the previous quarter and 16.0 per cent a year ago (Table 2A).
Sales of non-IT services companies remained buoyant and recorded 10.4 per cent growth (y-o-y) during Q4:2023-24 over and above 20.5 per cent growth in the corresponding quarter of the previous year (Tables 2A).
Expenditure
With the rise in input costs and staff cost outgo, manufacturing companies’ expenses rose by 4.6 per cent (y-o-y) during Q4:2023-24 (Table 2A).
The pace of rise in activities influenced the growth in staff cost, which has been moderating for IT companies but remained healthy for manufacturing and non-IT segments (Table 2A).
Staff cost to sales ratio remained largely unchanged at 5.3 per cent, 49.4 per cent, and 10.9 per cent for manufacturing, IT and non-IT services companies, respectively, during Q4:2023-24 (Table 2B).
Pricing power
Operating profit of manufacturing, IT and non-IT services companies rose (y-o-y) by 8.7 per cent, 3.5 per cent and 16.3 per cent, respectively, during Q4:2023-24; their operating profit margin has remained stable and stood at 14.5 per cent, 22.6 per cent and 22.3 per cent, respectively, in Q4:2023-24 (Table 2A and 2B).
Interest expenses
Interest coverage ratio (ICR)1 of manufacturing companies remained relatively stable at 7.5 and has remained above the threshold level of unity for non-IT services companies for the sixth successive quarter to reach 1.7 during Q4:2023-24 (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
Notes:
The coverage of companies in different quarters varies, depending on the date of declaration of results; this is, however, not expected to significantly alter the aggregate position.
Explanatory notes detailing the compilation methodology, and the glossary (including revised definitions and calculations that differ from previous releases) are appended.
Ajit Prasad
Deputy General Manager
(Communications)
Press Release: 2024-2025/496
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.