Performance of non-government non-financial public limited companies shows post-pandemic recovery consolidated further in FY23

The Reserve Bank of India (RBI) yesterday released the data relating to financial performance of non-government non-financial (NGNF) public limited companies during 2022-23 based on audited annual accounts of 7,238 companies. Total paid-up capital (PUC) of these companies amounted to Rs 7,49,846 crore in March 2023, which accounted for 52.8 per cent of the total PUC of NGNF public limited companies.

RBI stated that the post-pandemic recovery consolidated further during 2022-23 and net sales of the select NGNF public limited companies recorded 17.3 per cent increase on top of high growth of 35.1 per cent in the previous year, which had followed sales contraction in the COVID-19 peak pandemic year of 2020-21. Corporate sector recovery was broad based and all major sectors recorded double digit growth in sales, except the mining sector, which recorded 1.4 per cent rise during 2022-23. Rise in activities led to better asset utilisation; the ratios of sales to both gross fixed assets and total net assets improved during the year. Commensurate with sales growth, operating expenses and remuneration to employees rose by 19.4 per cent and 17.6 per cent, respectively, during 2022-23.

The central bank noted that Services sector recorded faster recovery vis-?-vis manufacturing sector in terms of sales and expenditure growth. Higher growth in operating expenses vis-?-vis earnings led to moderation in profitability especially in the manufacturing sector, where operating profits, profit before tax and profit after tax contracted during the year. As a ratio to sales, both operating profits and gross profits declined in 2022-23; the ratio of dividend to net worth, however, rose for the second successive year.

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