The Reserve Bank released data on the performance of the private corporate sector during the third quarter of 2021-22 drawn from abridged quarterly financial results of 2,744 listed non-government non-financial (NGNF) companies. Sales of listed private non-financial companies increased (y-o-y) by 25.3 per cent in Q3:2021-22 as compared with 31.8 per cent in the previous quarter and 4.0 per cent in the corresponding quarter a year ago.
Aggregate sales of 1,701 listed manufacturing companies recorded steady growth (y-o-y) of 27.3 per cent, aided by high sales growth in petroleum, non-ferrous metals, iron and steel, chemicals and textiles industries. Maintaining their growth momentum, information technology (IT) companies recorded 20.7 per cent increase (y-o-y) in sales during Q3:2021-22.
Sales of non-IT services companies expanded (y-o-y) by 22.0 per cent in Q3:2021-22; telecommunication companies, which account for nearly a fourth of this broad category, witnessed a marginal decline in sales but non-telecom companies recorded good growth.
In tandem with increase in sales, manufacturing companies' expenditure on raw material increased (y-o-y) by 37.1 per cent; expenses on raw material accounted for 63.3 per cent of their total expenditure. Manufacturing, IT and non-IT services sector companies recorded 7.6 per cent, 21.0 per cent and 15.8 per cent increase (y-o-y) in staff cost, respectively, during Q3:2021-22; staff cost had 6.2 per cent, 64.7 per cent and 10.6 per cent shares, respectively, in total expenditure of these three sectors.
With rising expenditures, operating profit growth decelerated across sectors in Q3:2021-22. Pricing power in terms of operating profit and net profit margins remained stable for manufacturing and IT companies.
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