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Manufacturing companies' sales improve in Q3, profit subdued: RBI

The net profit of the manufacturing companies declined by 2.4 per cent in the third quarter, RBI said

Press Trust of India  |  Mumbai 

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The country's witnessed an improvement in sales growth in the third quarter this fiscal on annual basis, though net has remained subdued due to lack of support from other income, says a data on performance of private corporate sector.

The data released on Monday said the (IT) sector recorded a modest improvement in sales growth, although lower than a year ago.

The services (non-IT) sector showed signs of revival as reflected by positive sales growth, added.

This data is based on abridged financial results of 2,705 listed non-government non-financial (NGNF) for third quarter of 2017-18.

As per the data, sales of increased by 14 per cent in the October-December quarter of 2017-18 compared to similar period of the previous fiscal.

The net of the declined by 2.4 per cent in the third quarter, said, adding that lack of support from other/non-operating income resulted in lower net profits for the sector.

Among major manufacturing industries, demand conditions improved for chemical and chemical products; cement and cement products; machinery and machine tools; and motor vehicles and other transport equipment.

"Operating profits of the were supported by improved demand conditions and continued to record a healthy growth, despite a significant increase in input costs," RBI said.

further said that pricing power in terms of the net margin declined for the manufacturing sector, while improved for the services (non-IT) sector.

First Published: Tue, March 20 2018. 00:46 IST