The Reserve Bank of India released its data on the performance of non-financial private corporate business sector during first quarter of 2013-14. The data is based
on the abridged financial results of 2,768 listed
non-government non-financial companies.
* Sales growth (Y-o-Y) continued to decelerate and reached the post crisis low of 2.6%.
Total expenditure growth also declined to 2.2% mainly due to raw material expenses contraction.
* Earnings before Interest, Tax, Depreciation & Amortisation (EBITDA or operating profits) grew marginally by 1.1% against near stagnation seen in the previous quarter. However, net profit contracted for the second consecutive quarter.
* Sales of the manufacturing sector remained almost stagnant with a growth of only 0.8% during the quarter. EBITDA and net profits contracted and profitability in terms of EBITDA and net profit margins worsened.
* Sales growth for the non-IT services sector was lower than that of the previous quarter. EBITDA recorded a meagre growth of 1.3% but net profit contracted. EBITDA and net profit margins recorded some improvement.
* Improvement in sales growth was noticed for the IT sector. EBITDA also grew at a higher rate in comparison to the previous quarter, and net profit increased after contraction during the fourth quarter.
* Decline in sales growth was spread across most of the industries such as motor vehicles, iron & steel, cement, coke & refined petroleum products and electrical machinery . Cement, iron & steel and construction industries witnessed significant contraction in EBITDA and net profit.