Financial Performance of Non-Government Non-Financial Public Limited Companies in 2023-24

The Reserve Bank of India (RBI) has released data on the financial performance of non-government non-financial (NGNF) public limited companies for 2023-24. The data is based on audited annual accounts of 6,955 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 ₹7,82,257 crore, accounting for 55.7% of the total PUC of NGNF public limited companies.

Key Highlights

Sales Growth

• Net sales growth slowed to 5.5% in 2023-24, compared to a 17.8% surge in the previous year, which was driven by post-pandemic recovery.
• Manufacturing and services sectors recorded lower sales growth of 4.1% and 6.8%, respectively, compared to double-digit growth in the previous year.
• The manufacturing sector’s performance was impacted by a decline in sales of metal and metal products, chemicals and pharmaceuticals, and coke and refined petroleum products.

Expenditure Trends

• Operating expenses rose by 3.4% in 2023-24, reflecting the slowdown in sales growth.
• Growth in manufacturing expenses and employee remuneration remained subdued, leading to broad-based moderation in expenditure across the manufacturing and services sectors.

Profitability

• Despite lower sales growth, cost rationalization contributed to a 15.3% rise in operating profits, up from 4.2% in the previous year.
• Operating profit growth in the manufacturing and services sectors stood at 13.2% and 15.5%, respectively, compared to (-3.9%) and 16.8% in 2022-23.
• Profit after tax increased by 16.3%, with the services sector recording a much higher growth of 38.1% compared to 7.6% in manufacturing.
• Both operating profit margin and net profit margin improved across major sectors.

Leverage and Interest Coverage

• The debt-to-equity ratio continued to decline, indicating moderation in leverage levels.
• The interest coverage ratio (ICR) improved to 4.1 in 2023-24 as gross profit growth outpaced interest expenses.
• ICR for manufacturing companies remained stable at 6.3, while it increased slightly to 3.2 for services companies.

Sources and Uses of Funds

• Internal sources accounted for over two-thirds of total funds, driven by growth in reserves and surplus.
• The share of external funding declined due to reductions in share capital premium and current liabilities.
• Gross fixed assets grew by 10.0%, with higher growth recorded in the chemicals and pharmaceuticals, electrical equipment, and motor vehicles sectors within manufacturing.