Corporates recorded higher growth in sales, net profit in Q2: RBI

Mumbai, Jan 4 (IANS) Robust growth in sales and net profit marked the private corporate performance in the July-September quarter of the current fiscal, RBI data showed on Wednesday.

“Sales growth improved significantly by 3.7 per cent year-on-year for the manufacturing sector after contraction in sales in the previous quarter,” the Reserve Bank of India (RBI) said in a statement here.

“Net profit at the aggregate level improved and recorded a robust growth of 16.0 per cent in Q2 of 2016-17 compared with 11.2 per cent in the previous quarter,” indicated the data.

Interest expenses remained unchanged during the period, which helped in the robust growth of 16 per cent in net profits at the aggregate level, it added.

The RBI data was based on financial results of 2,702 listed non-government non-financial companies for the second quarter.

“However, sales of the services (non-IT) sector continued to contract and IT sector witnessed deceleration of sales growth,” the statement said.

“Aggregate sales growth of the listed non-government non-financial companies grew by 1.9 per cent year-on-year in Q2, after near stagnation in the first quarter.

“However, raw material expenses increased in the current quarter in line with the general pause in falling global commodity prices. This resulted in a deceleration of operating profit growth at the aggregate level,” the RBI said.