Listed private mfg firms' sales soar 75% in Q1 on low base: RBI data

Sales of 1,647 listed private manufacturing companies recorded "extraordinarily high" growth of 75% in the first quarter of FY'22 mainly due to a very low base in the pandemic-hit year-ago period

Sales of 1,647 listed private manufacturing companies recorded "extraordinarily high" growth of 75 per cent in the first quarter of FY'22 mainly due to a very low base in the pandemic-hit year-ago period, showed RBI data released on Monday.

Their sales had declined by 41.1 per cent in the April-June quarter of FY2020-21.

In absolute terms, the sales of the manufacturing companies worked out at Rs 7,02,791 crore as against Rs 3,97,233 crore in the first quarter of FY2020-21.

Sales growth (y-o-y) of information technology (IT) sector companies, which remained in the positive terrain throughout the pandemic, accelerated to 17.5 per cent in first three months period of 2021-22 from 6.4 per cent in the previous quarter. In absolute term, the sales were worth about Rs 1,13,807 crore.

"Sales of non-IT services companies also surged (y-o-y) in Q1:2021-22, but the revenues of telecom companies within this group declined," the RBI said.

The data on the performance of the private corporate sector during the first quarter of 2021-22 is drawn from abridged quarterly financial results of 2,610 listed non-government non-financial (NGNF) companies.

"Operating profits of manufacturing, as well as services sector companies (both IT and non-IT), recorded high growth in Q1:2021-22 in line with the rise in sales," the central bank said.

It further said that manufacturing companies increased their expenditure on raw materials during the first quarter of the fiscal in tandem with the rise in sales. Also, staff cost growth accelerated for all sectors.

Also, the operating profit margin remained stable for manufacturing and IT companies during the quarter, but it moderated for the non-IT services companies.