The Reserve Bank of India (RBI) has released data on the financial performance of non-government non-financial (NGNF) private limited companies for the year 2023-24. The data is based on audited annual accounts of 11,317 companies that reported under the Indian Accounting Standards (Ind-AS) format for three financial years from 2021-22 to 2023-24. The information has been sourced from the Ministry of Corporate Affairs, Government of India. The full report is available at RBI’s data portal.
As of March 2024, the total paid-up capital (PUC) of these companies stood at ₹6,55,009 crore, representing 32.2% of the total PUC of NGNF private limited companies.
Key Highlights
Sales Growth
- Net sales grew by 10.8% in 2023-24, following a 21.8% surge in 2022-23, which was a post-pandemic recovery year.
- Manufacturing and services sectors recorded sales growth of 10.2% and 11.2%, respectively.
- All major sectors, including mining, manufacturing, electricity, construction, and services, saw moderate double-digit sales growth as the economy stabilized after the post-pandemic rebound.
- The ratio of net sales to both gross fixed assets and total net assets declined slightly, reflecting a slowdown in activity.
Expenditure Trends
- Manufacturing costs and employee remuneration rose at a slower pace in line with sales growth.
- Total operating expenses increased by 8.9% in 2023-24, compared to 22.4% in the previous year.
- Operating expenses in both manufacturing and services sectors grew at a lower rate than sales.
Profitability
- Operating profit growth accelerated across sectors, leading to an improvement in profit margins.
- The ratio of operating profit and profit after tax to sales showed positive growth.
Leverage and Interest Coverage
- The overall debt-to-equity ratio remained stable at 45.2% in March 2024.
- Sectors such as electricity, gas, steam, air conditioning supply, and construction remained highly leveraged, though with slight moderation.
- The interest coverage ratio (ICR) improved from 2.7 in the previous year to 3.1 in 2023-24.
- ICR for manufacturing and services sectors stood at 8.3 and 2.7, respectively.
Sources and Uses of Funds
- Growth in reserves and surplus led to an increased reliance on internal sources of funds, while external funding declined due to lower current borrowings.
- Fixed assets continued to grow at a double-digit rate across sectors.
- Within manufacturing, industries such as food, beverages, tobacco, chemicals, pharmaceuticals, metals, electrical equipment, and motor vehicles saw significant fixed asset growth.
