The country's manufacturing sector witnessed an improvement in sales growth in the third quarter this fiscal on annual basis, though net profit has remained subdued due to lack of support from other income, says a RBI data on performance of private corporate sector.
The services (non-IT) sector showed signs of revival as reflected by positive sales growth, it added.
This data is based on abridged financial results of 2,705 listed non-government non-financial (NGNF) companies for third quarter of 2017-18.
The net profit of the manufacturing companies declined by 2.4 per cent in the third quarter, RBI 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 manufacturing sector were supported by improved demand conditions and continued to record a healthy growth, despite a significant increase in input costs," RBI said.