These numbers must be read against the backdrop of heavy global headwinds, according to the Reserve Bank of India (RBI).
The Reserve Bank released data on the performance of the private corporate sector during 2024-25 drawn from abridged financial results of 3,902 listed non-government non-financial (NGNF) companies.
According to the RBI, sales growth of listed private non-financial companies improved to 7.2 per cent in 2024-25, up from a low of 4.7 per cent during the previous year.
Sales of manufacturing sector companies rose by 6.0 per cent during 2024-25 as compared to 3.5 per cent growth in the previous year, mainly led by automobiles, electrical machinery, food & beverages and pharmaceuticals industries. Among the major industries, petroleum and iron & steel industries recorded contraction in their sales during 2024-25
In line with acceleration in sales, manufacturing companies’ expenses on raw material rose by 6.6 per cent during 2024-25; raw material to sales ratio increased to 55.7 per cent in 2024-25 from 54.2 per cent a year ago, pointing to input cost pressure.
Staff cost rose by 10.0 per cent, 4.4 per cent and 12.0 per cent during 2024-25 for manufacturing, IT and non-IT services companies, respectively. Staff cost to sales ratio broadly remained stable for manufacturing companies while it moderated for services companies.
With increase in the input costs, operating profit growth of manufacturing companies moderated to 6.0 per cent during 2024-25 from 12.4 per cent in the previous year. Within services sector, profit growth moderated to 15.9 per cent in 2024-25 for the non-IT services companies, while it inched up to 6.1 per cent for IT companies During 2024-25, operating profit margin moderated by 20 basis points (bps), 80 bps and 30 bps to 14.2 per cent, 21.9 per cent and 22.1 per cent, respectively, for manufacturing, IT and non-IT services companies.
