Net profit of non-government non-financial (NGNF) companies continued to contract in 2014-15, but at a lower rate compared with previous year due to "huge improvement in services (non-IT) sector".
The net profits of the companies showed a contraction of 0.7 per cent as against -5.1 per cent in 2013-14, as per the data on performance of private corporate business sector during 2014-15, according to RBI data.
Sales performance of services (non-IT) improved in 2014-15 compared with previous year. Similarly, mining and quarrying industry group also recovered.
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"However, decline in performance of the manufacturing and IT sector pulled down aggregate sales growth of non-government non-financial companies in 2014-15. In particular, petroleum products industry group recorded a sharp contraction in sales growth," RBI said in a notification.
On expenditure, it said reduction in the growth rates of raw material expenses and staff cost caused a decrease in aggregate expenditure growth in 2014-15.
The data also said pricing power, as measured by EBITDA margin remained range-bound.
EBITDA (Earnings before Interest Tax, Depreciation and Amortisation) increased at the aggregate level due to improved performance of services (non-IT) sector.
The data is based on abridged financial results of 2,925 listed non-government non-financial (NGNF) companies.
