 "Manufacturing cos profit falls faster in July-Sept qtr: RBI")
According to the data, the net profit of the manufacturing companies fell by 27.4% during the second quarter at Rs 23,000 crore compared to a 5% fall in the first quarter (April-June) at Rs 25,200 crore.
Sales growth during the second quarter was 7.6% higher at Rs 5.57 lakh crore versus a growth of a mere 0.8% to end first quarter at Rs 5.33 lakh crore.
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For the services sector (non-IT), profit during the second quarter of FY14 was down by 23.2% at Rs 2,500 crore, while profits fell at a much higher 42.7% rate to Rs 2,600 crore in the previous quarter.
Sales in this segment during the second quarter, however, grew by only 4.9% at Rs 67,800 crore, slower than the growth of 10.8% at Rs 73,300 crore logged in the first quarter.
The Information Technology (IT) sector remained positive with a rise of 26.3% growth in net profit at Rs 11,700 crore during second quarter, versus just 2.4% rise at Rs 8,400 crore in the first quarter.
Its sales rose by 18.9% to Rs 57,300 crore during July-September period against a growth of 13.2% at Rs 56,400 crore during April-June, the data showed.
"The upturn in sales growth is noticeable for the manufacturing and the IT sectors, while slowdown continued in the non-IT services sector," the RBI said.
Among the major industries, the sales growth was high in textiles, coke and refined petroleum products, chemicals and chemical product industries.
However, cement and cement products, iron and steel, motor vehicle and transport equipments and machinery industries continued to record contraction in sales.
"The improvement in sales growth was not reflected in profit growth, net profit growth and profit margins," the RBI said.
Overall, net profit covering all the three sectors, was down by 20.5% at Rs 38,200 crore in the second quarter. Profits had fallen by a lower 10.9% to Rs 37,600 crore in the first quarter.
However, the overall sales grew by 7.4% at 7.43 lakh crore during July-Sep versus just a 2.6% rise in the previous quarter at Rs 7.26 lakh crore, RBI said.
In its data based on performance of 2,708 non-financial private corporate businesses covering manufacturing, IT and services firms, the RBI said sales growth during the quarter improved on the back of higher sales by bigger companies with annualised sales of over Rs 100 crore.
During the first quarter, as many as 2,768 companies were covered for data compilation.