Sales Growth Of Listed Private Non-Financial Companies Improved To 7.2% In 2024-25: RBI | Economy News
New Delhi: The sales growth of listed private non-financial companies in India improved to 7.2% in 2024–25, up from a low of 4.7% in the previous year, Reserve Bank of India (RBI) data showed on Thursday. The RBI released data on the performance of the private corporate sector during 2024–25, drawn from the abridged financial results of 3,902 listed non-government non-financial (NGNF) companies.
The sales of manufacturing sector companies rose by 6.0% during 2024–25, compared to 3.5% growth in the previous year, mainly led by the automobiles, electrical machinery, food and beverages, and pharmaceuticals industries. On the other hand, among major industries, the petroleum and iron and steel sectors recorded a contraction in their sales during 2024–25.
Despite global headwinds, sales growth of IT companies improved to 7.1% in 2024–25 from 5.5% in the previous year. Non-IT services companies recorded double-digit sales growth during 2024–25, led by the healthy performance of the telecommunication, transport and storage services, and wholesale and retail trade industries.
In line with the acceleration in sales, manufacturing companies’ expenses on raw materials rose by 6.6% during 2024–25. The raw material-to-sales ratio increased to 55.7% in 2024–25 from 54.2 per cent a year ago, indicating input cost pressures.
Staff costs rose by 10.0%, 4.4%, and 12.0% during 2024–25 for manufacturing, IT, and non-IT services companies, respectively. The staff cost-to-sales ratio broadly remained stable for manufacturing companies, while it moderated for services companies, the RBI said today.
With the increase in input costs, the operating profit growth of manufacturing companies moderated to 6.0% in 2024–25, down from 12.4% in the previous year. Within the services sector, profit growth moderated to 15.9% in 2024–25 for non-IT services companies, while it inched up to 6.1% for IT companies.
During 2024–25, the operating profit margin moderated by 20 basis points (bps), 80 bps, and 30 bps to 14.2%, 21.9%, and 22.1%, respectively, for manufacturing, IT, and non-IT services companies.
