Aggregate sales growth of the listed private companies slowed down to 0.1 per cent in the first quarter of 2016-17 year-on-year, RBI data showed today.
Expenditure, at the aggregate level, also continued to contract, though at a lower rate as compared with the previous quarter, the Reserve Bank said.
“This resulted in a slowdown in operating profit at the aggregate level. Net profit growth also decelerated at the aggregate level,” RBI said.
Net profit growth at the aggregate level declined to 11.2 per cent in April-June period from 16.4 per cent in the previous quarter, the data compiled and released by RBI showed.
Among the sectors, net profit decelerated significantly for the IT sector, contracted substantially for the services (other than IT) sector and improved for the manufacturing sector.
The data, RBI said is based on abridged financial results of 2,775 listed non-government non-financial companies for Q1:2016-17.
“At the aggregate level, operating profit decelerated to 9.6 per cent in Q1:2016-17 from 16.8 per cent in the previous quarter.
“For the manufacturing sector, growth in operating profit in Q1: 2016-17 was almost similar to that of the previous quarter. However, it recorded a sharp deceleration for both services sector (other than IT) and the IT sector,” the RBI said.
Year-on-Year growth in interest expenses moderated at the aggregate level. Within the services (other than IT) sector, the ‘telecommunications’ industry continued to record high growth in interest expenses.
Further, pricing power measured by operating profit margin increased in quarter under review at the aggregate level and the manufacturing sector.
However, it declined for the services sector (other than IT) and remained at similar levels for the IT sector.