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Operating profits of manufacturing companies declined in Q4FY20: RBI

The operating profits of services companies (IT and non-IT) decelerated due to moderation in sales growth during the last quarter of 2019-20, it said

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It also said subdued production related activities resulted in lower expenditure on raw materials for the manufacturing sector in the quarter under review.

Press Trust of India Mumbai
Operating profits of manufacturing firms declined in the January-March quarter of 2019-20 on account of lower sales, as per a Reserve Bank analysis of listed non-government non-financial (NGNF) companies.

The operating profits of services companies (IT and non-IT) decelerated due to moderation in sales growth during the last quarter of 2019-20, it said.

The analysis is based on the abridged quarterly financial results of 2,620 listed NGNF companies.

"Sales of manufacturing sector companies declined by 15.6 per cent (Y-o-Y) in Q4:2019-20 as compared with 5.9 per cent growth in Q4:2018-19; this contraction was broad-based across industries," it said.

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First Published: Aug 28 2020 | 11:42 PM IST

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