Data on Private Corporate Sector Performance for Q2 2024-25 [PDF]

The Reserve Bank of India (RBI) has released revised data on the performance of the private corporate sector for the second quarter (Q2) of 2024-25. The analysis is based on the abridged financial results of 2,911 listed non-government, non-financial companies. Comparative data for Q2:2023-24 and Q1:2024-25 are also included to facilitate sequential (q-o-q) and annual (y-o-y) comparisons. Detailed data can be accessed on the RBI’s DBIE portal.

Key Highlights

Sales

• Aggregate sales growth (y-o-y) slowed to 5.4% in Q2:2024-25, compared to 6.9% in Q1:2024-25.
• Other income saw significant growth, increasing by 23.8% (up from 12.7% in the previous quarter).
• Sector-wise sales growth:
  • Manufacturing: Up by 3.3%, with a contraction in industries like petroleum, iron & steel, and cement.
  • Information Technology (IT): Increased by 6.6%.
  • Non-IT Services: Grew by 12.5%.

Expenditure

• Manufacturing expenses growth slowed, aligning with the moderation in sales growth:
  • Staff expenses: Rose by 9.3% (down from 10.7% in Q1:2024-25).
  • Raw material costs: Increased by 5.1% (down from 6.4% in the previous quarter).
• Staff and raw material costs accounted for 55.1% and 5.8% of manufacturing sales, respectively.
• In the services sector, the staff cost-to-sales ratio decreased slightly:
  • IT companies: 48.4%.
  • Non-IT companies: 10.9%.

Profitability and Pricing Power

• Operating profits grew by 3.5% (y-o-y) overall but contracted by (-0.3%) in the manufacturing sector.
• A surge in other income contributed to strong net profit growth:
  • Aggregate level: 23.7%.
  • Manufacturing sector: 24.2%.
• Operating profit margins:
  • Declined sequentially to 14.0% for manufacturing and 20.4% for non-IT services.
  • Increased to 22.9% for IT companies.

Interest Expenses

• Interest coverage ratio (ICR):
  • Manufacturing companies: Stable at 7.9.
  • Non-IT services: Stable at 1.7.
  • IT companies: Improved further to 45.6.

This data provides valuable insights into the financial performance and trends within India’s private corporate sector, highlighting variations across industries.

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