Growth in Performance of Private Corporate Business Sector during Q4:2021-22 : RBI



Jun 22, 2022 05:00 am

The Reserve Bank of India on Jun 21, 2022 released data on the performance of the private corporate sector during the fourth quarter of 2021-22.


Highlights of the data is shared below


Sales

  • Sales of 2,758 listed private non-financial companies recorded a healthy growth of 22.3 per cent (y-o-y) in Q4:2021-22, compared to 25.3 per cent growth in the previous quarter and 22.8 per cent in Q4 of previous year

  • Aggregate sales of 1,709 listed private manufacturing companies registered a steady growth (y-o-y) of 24.6 per cent in Q4:2021-22, driven by high sales growth in petroleum, non-ferrous metals, iron and steel, chemicals and textiles industries

  • Information technology (IT) companies continued their move on growth trajectory with 20.7 per cent growth (y-o-y) in sales during this quarter

  • Sales of non-IT services companies expanded by 20.9 per cent (y-o-y) in Q4:2021-22, led by steady growth in transport, trade, telecom, hotel and restaurant sectors

Expenditure

  • In tandem with the expansion in sales, manufacturing companies’ expenditure on raw material increased by 32.8 per cent (y-o-y); higher input cost pressure was reflected in the increase in the ratio of raw material expenditure to sales on both sequential as well as annual basis

  • Staff cost in manufacturing companies recorded moderate growth of 7.2 per cent (y-o-y), whereas it was higher for IT and non-IT services companies at 24.6 per cent and 17.2 per cent, respectively, during Q4:2021-22

Interest

  • The interest coverage ratio (ICR)1 of manufacturing companies improved to 9.8 in Q4:2021-22 from 7.3 a year ago; the ICR of non-IT services companies continued to remain below unity