2,931 companies at India Inc record 2% fall in net profit in 2012-13: RBI

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Among major industries, machinery, motor vehicles and cement in the manufacturing sector witnessed significant decline in sales growth. Reuters Among major industries, machinery, motor vehicles and cement in the manufacturing sector witnessed significant decline in sales growth. Reuters
SummaryDecline of net profit was to Rs 1,74,800 cr, says 'Performance of the Private Corporate Business Sector' report.

The Reserve Bank of India (RBI) today said 2,931 listed private non-financial companies at India Inc have recorded a decline of 2 per cent in net profit to Rs 1,74,800 crore in 2012-13.

"Most of the industries followed the general trend of lower sales growth and lower profit margins (EBITDA) in 2012-13 as compared to 2011-12," the central bank said in a report titled 'Performance of the Private Corporate Business Sector during 2012-13'.

Next few quarters expected to be extremely difficult

Among major industries, machinery, motor vehicles and cement in the manufacturing sector witnessed significant decline in sales growth.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) growth improved for the iron and steel industry, while it declined sharply for the cement industry, it added.

Motor vehicles, construction and machinery industry witnessed contraction in EBITDA levels, while EBITDA margins contracted for all these industries.

During 2011-12, as many as 2,679 private companies had recorded a net profit of Rs 1,64,500 crore.

Quarter of discontent as 350 cos report losses

Showing signs of improvement in the manufacturing sector, 1,996 companies recorded a net profit growth of 3.6 per cent to Rs 1,19,300 crore in 2012-13.

Even in the non-IT services sector, the net profit of 471 companies declined by 29.6 per cent to Rs 7,500 crore in 2012-13.

All three sectors namely manufacturing, services other than IT and IT) exhibited lower sales growth, it said, adding EBITDA margin declined for manufacturing and services other than IT sectors.

Some improvement was noticed for the IT sector, it added.

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