The Reserve Bank of India (RBI) had released data on the performance of the private corporate sector

during the September quarter of 2023-24. This considers the quarterly financial results of 2835 listed
non-government non-financial companies from various sector.

Sales performance:

1. Sales growth (y-o-y) of listed private non-financial companies increased to 4.4% in Q2 FY24 from
2.1% in the previous quarter. It was 22.6% a year ago. On a sequential (q-o-q) basis, sales increased
by 3.7% (Table 1A).
Performance of Listed Non-Government Non-Financial Companies Select Ratios of Listed Non-Government Non-Financial Companies (%)

Sep 2022 June 2023 Sep 2023 Indicator Sep 2022 June 2023 Sep 2023
Indicator Amount in Y-o-Y Growth Amount in Y-o-Y Growth Amount in Rs Y-o-Y Growth No. of Companies 2,740 2,836 2835
Rs Cr in % Rs Cr in % Cr in % Components of Cost of Raw Materials to Sales 53.8 50.8 51.2
No. of Companies 2740 2836 2835 Expenditure to Sales Staff Cost to Sales 10.2 10.8 10.7
Interest Burden 21.7 19.4 18.7
Sales 1,411,548 22.6 1,475,652 2.1 1,526,694 4.4 Profit Allocation
Tax Provisions to EBT 21.8 21.2 20.8
Ratios
Expenditure 1,211,985 27.1 1,241,346 -1.5 1,281,755 1.7 Other Income to Net Profit 43.2 32.1 38.7
190,265 -6.9 234,016 5.3 244,620 26.2 Cash Coverage Ratio(times) 6 6.5 6.8
Operating Profits
Interest linked Ratios Interest Coverage(times) 4.6 5.2 5.4
Other Income 44,349 27.4 43,833 41.8 49,033 4.9 Interest to Sales 2.8 2.9 2.8
EBITDA 234,614 -1.9 277,849 9.7 293,652 22.0 Operating Profits to Sales 13.5 15.9 16
EBITDA to Sales 16.6 18.8 19.2
Gross Profits (EBIT) 181,132 -3.9 220,166 10.5 232,543 25.3 Profitability Ratios
EBIT to Sales 12.8 14.9 15.2
Net Profits 102,681 -9.7 136,540 9.0 126,768 26.2 Net Profit to Sales 7.3 9.3 8.3

2. Aggregate sales of 1703 listed private manufacturing companies picked-up to 4.2% (y-o-y) during Q2
FY24 (0.1% in Q1 FY24), supported by higher sales growth in automobiles, cement, electrical
machinery and pharmaceuticals industries (Tables 2A and 5A).
Performance of Listed Non-Government Non-Financial Companies - Manufacturing
Sep 2022 June 2023 Sep 2023
Indicator Amount in Y-o-Y Growth Amount in Y-o-Y Growth Amount in Y-o-Y Growth
Rs Cr in % Rs Cr in % Rs Cr in %
No. of companies 1702 1712 1703
Sales 1,006,482 20.9 1,020,196 0.1 1,062,612 4.2
Expenditure 875,420 25.8 876,262 -3.1 906,274 1.6
Operating Profits 120,825 -13.8 143,246 -0.9 153,774 30.1
Other Income 26,354 35.2 21,261 37.0 28,743 5.6
EBITDA 147,179 -7.8 164,507 2.8 182,518 25.6
Gross Profits (EBIT) 117,299 -10.9 134,269 1.4 149,888 28.6
Interest 17,504 14.3 19,684 25.6 20,016 16.9
Net Profits 75,854 -14.1 89,696 -6.6 84,039 21.5

3. After recording double digit growth in the previous nine consecutive quarters, sales of the
information technology (IT) sector moderated to 5.9% in Q2 FY24 (Table 2A).
Performance of Listed Non-Government Non-Financial Companies - IT

Sep 2022 June 2023 Sep 2023

Indicator Amount in Y-o-Y Growth Amount in Rs Y-o-Y Growth Amount in Y-o-Y Growth
Rs Cr in % Cr in % Rs Cr in %
No. of companies 176 194 193
Sales 146,348 21.4 157,599 10.9 155,956 5.9
Expenditure 112,760 26.2 122,979 10.9 121,036 6.0
Operating Profits 33,577 7.6 34,582 10.5 34,923 5.2
Other Income 5,265 -8.3 5,792 69.9 6,362 15.6
EBITDA 38,841 5.2 40,374 16.4 41,285 6.7
Gross Profits (EBIT) 35,238 4.7 36,518 18.0 37,278 6.9
Interest 641 21.4 821 15.6 864 29
Net Profits 26,334 3.4 26,909 20.3 27,296 5.7
4. Non-IT services companies also recorded lower sales growth of 1.9% (y-o-y) as compared with 4.5%
growth during the previous quarter; lower sales of the trading companies offsetted by the higher
revenue of other major non-IT services companies (Tables 2A and 5A).

Performance of Listed Non-Government Non-Financial Companies - Services (Non-IT)

Sep 2022 June 2023 Sep 2023

Indicator Amount in Y-o-Y Growth Amount in Rs Y-o-Y Growth Amount in Y-o-Y Growth
Rs Cr in % Cr in % Rs Cr in %
No. of companies 545 566 607
Sales 141,221 42.1 160,760 4.5 167,303 1.9
Expenditure 116,910 46.7 121,366 -7.5 132,706 -1.7
Operating Profits 24,459 16.2 38,079 37.3 36,027 22.7
Other Income 5,471 60.7 4,487 -16.0 5,525 1.8
EBITDA 29,930 22.4 42,566 28.7 41,552 19.4
Gross Profits (EBIT) 13,206 63.2 23,321 60.2 21,440 30.4
Interest 13,922 16.8 14,399 2.9 15,248 4.2
Net Profits -4,277 - 4,589 - 423 -

Expenditure:

5. During Q2 FY24, manufacturing companies’ expenses rose by 4.0% on a sequential (q-o-q) basis and
by 1.6% on an annual (y-o-y) basis (Table 2A).

6. Staff cost rose by 11.4% and 15.8%, on y-o-y basis, for manufacturing and non-IT services
companies, respectively, while it moderated significantly to 7.7% per cent for IT companies (13.0% in
the previous quarter); the staff cost to sales ratio stood at 5.5%, 50.1%, and 10.8% for
manufacturing, IT and non-IT services companies, respectively, during Q2 FY24 (Table 2B).

Pricing power:

7. Operating profit rose by 30.1%, 5.2% and 22.7% (y-o-y) for manufacturing, IT and non-IT services
companies, respectively, in Q2 FY24; their operating profit margin stood at 14.5%, 22.4% and 21.5%,
respectively, (Table 2A and 2B).

Interest expenses:

8. Higher profits contributed to improvement in the interest coverage ratio (ICR) of manufacturing
companies to 7.5 during Q2 FY24 from 6.8 in the previous quarter, despite the rise in interest outgo
on sequential as well as annual basis; ICR of non-IT services companies remained above the unity for
the fourth consecutive quarter, though it moderated marginally in the latest quarter (Table 2B).