 "FDI")
The net profit of foreign direct investment (FDI) companies in India, or multinational companies, rose by 45.2 per cent year on year (YoY) to over Rs 2.69 trillion in the year ended March 2023 on the back of improvement in margins. FDI companies or multinationals had posted a net profit of over Rs 1.85 trillion in FY22.
The Reserve Bank of India, in a statement, said the net profit margin improved to 5.9 per cent in FY23 from 4.9 per cent in FY22 and 3.2 per cent during 2020-21 (FY21). This improvement came in the post-COVID pandemic recovery period.
The performance analysis is based on audited annual accounts of 2,272 companies that reported in the Indian Accounting Standards (Ind-AS) format for three accounting years from 2020-21 to 2022-23.
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The dividend payout also perked up in FY23. The dividend payments rose by 43.66 per cent to Rs 2.02 trillion in FY23 from Rs 1.45 trillion in FY22.
The post-pandemic recovery in the activities of firms consolidated further during 2022-23. The net sales of the sample companies rose by 21.1 per cent on top of 28.6 per cent growth in the previous year, RBI said. Major manufacturing and services sectors (barring wholesale and retail trade) recorded double-digit sales growth for the second successive year, it added.
The strengthening of economic activity resulted in 20.7 per cent growth in raw material expenses during 2022-23. The operating expenses also rose by 20.7 per cent over and above a 31.3 per cent increase in the previous year. The manufacturing and services sectors witnessed a similar trend, RBI said.
