Operating profits of manufacturing companies declined in Q4FY20: RBI

Operating profits of manufacturing firms declined in the January-March quarter of 2019-20 on account of lower sales, as per a Reserve Bank analysis of listed non-government non-financial (NGNF) companies.

The operating profits of services companies (IT and non-IT) decelerated due to moderation in sales growth during the last quarter of 2019-20, it said.

The analysis is based on the abridged quarterly financial results of 2,620 listed NGNF companies.

"Sales of manufacturing sector companies declined by 15.6 per cent (Y-o-Y) in Q4:2019-20 as compared with 5.9 per cent growth in Q4:2018-19; this contraction was broad-based across industries," it said.