RBI Data Reveals Slowdown in Annual Sales Growth for Listed Private Non-Financial Companies to 4.7% in FY24
The Reserve Bank of India’s (RBI) data indicates that the annual sales growth rate of listed private non-financial companies decreased to 4.7% in FY2023-24, down from 19.8% in FY2023. This period included the post-pandemic recovery.
Despite the overall slowdown, these companies achieved double-digit growth in profits and improved margins at the aggregated level during the fiscal year ending March 31, 2024.
- “Annual sales growth of listed private non-financial companies moderated to 4.7 per cent during 2023-24 from the high of 19.8 per cent in 2022-23, which included the post-pandemic recovery period,” the RBI data on the performance of the private corporate business sector during 2023-24 showed. The analysis is based on financial results from 3,281 listed non-government non-financial companies.
Among major sectors, sales for manufacturing, information technology (IT), and non-IT services companies grew by 3.5%, 5.5%, and 7.9%, respectively, during FY24, compared to 18%, 19.4%, and 33.5%, respectively, in the previous year.
In FY24, sales in the automobile, electrical machinery, and pharmaceutical industries remained strong, but the overall performance of the manufacturing sector was mainly dragged down by the chemicals and petroleum industries. The data showed that listed private non-financial companies recorded an 18% annual growth in profits in FY24, compared to a negative 0.2% in FY23. Operating profit growth accelerated for manufacturing companies (12.4% in FY24 vs. -1.2% in FY23) and non-IT services companies (27.9% in FY24 vs. 15.1% in FY23), while it slowed for IT companies (5.6% in FY24 vs. 8.8% in FY23).
During FY24, operating profit margins improved across major sectors, standing at 14.4% for manufacturing, 22.4% for non-IT services, and 22.7% for IT companies. On the expenditure front, easing input cost pressures and low sales growth kept overall raw material expenses for manufacturing companies unchanged from FY2023. Staff costs increased by 10.8%, 6.6%, and 15.6% year-on-year for manufacturing, IT, and non-IT services companies, respectively.
