India Inc's sales growth slowed in the first half of this financial year, the Reserve Bank of India (RBI) said today.
The moderation in growth was sharper during July-September quarter. "Sales growth [on a year-on-year basis] further moderated in the first half of 2012-13. The moderation was deeper in the second quarter than in the first. In the first half, sales contracted for smaller companies with annualised sales below Rs 100 crore," the banking regulator said in a statement after evaluating the financial results of 2,832 listed non-government non-financial companies.
Domestic companies' sales growth in the first six months of this financial year was estimated at 12.3%. While in the first three months growth was 13.4%, it slowed to 11.3% in July-September quarter.
The operating profits of these companies were also lower in the first half from a year ago even though it improved in the second quarter.
The information technology (IT) companies performed better than their manufacturing and non-IT services rivals. In the first six months of 2012-13, the IT sector maintained its net profit margin at above 17%, while it was 5.7% for the manufacturing sector and 4.9% for non-IT services firms.
Net profit margin, in aggregate, was impacted by the weak performance of small companies with annualised sales below Rs 100 crore.
