The Reserve Bank released data on the performance of the private corporate sector during the first quarter of 2021-22 drawn from abridged quarterly financial results of 2,610 listed non-government non-financial (NGNF) companies. Sales of 1,647 manufacturing companies recorded extraordinarily high growth (y-o-y) of 75.0 per cent in Q1 2021-22, which was aided by very low base, reflecting the COVID-19 pandemic impact on operations. All the major sectors recorded high growth during the quarter. Sales growth (y-o-y) of information technology (IT) sector companies, which remained in positive terrain throughout the pandemic, accelerated to 17.5 per cent in Q1:2021-22 from 6.4 per cent in the previous quarter. Sales of non-IT services companies also surged (y-o-y) in Q1 2021-22, but the revenues of telecom companies within this group declined. Manufacturing companies increased their expenditure on raw materials during Q1 2021-22 in tandem with the rise in sales. Staff cost growth (y-o-y) accelerated for all sectors during Q1 2021-22. Operating profits of manufacturing as well as services sector companies (both IT and non-IT) recorded high growth in Q1 2021-22 in line with the rise in sales. Interest coverage ratio (ICR)1 of manufacturing companies remained steady at 7.5 in Q1 2021-22.
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