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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.
