Sales of Manufacturing Companies Declined 7.4% in FY20, RBI Data
Sales of manufacturing companies declined by over seven
per cent in FY20, while service companies in the IT and non-IT sector also
reported muted growth, revealed data released by the Reserve Bank of India on
Monday.
“Sales of manufacturing companies declined by 7.4 per
cent during FY20 against 14.8 per cent growth in the previous year; this
contraction in sales was broad based across industries,” said the RBI statement
on performance of private corporate business sector in FY20.
The data on the performance of the private corporate
sector during FY20 was taken from the abridged financial results of 3,064
listed non-government non-financial companies, it further said.
Service sector companies in the information technology
(IT) and non-IT sectors recorded sales growth of 8.4 per cent and 6.9 per cent,
respectively, which was lower than their growth in the previous year, the data
revealed.
Telecommunication and hospital sectors recorded higher
sales growth last fiscal.
The subdued demand also impacted the net profit of
manufacturing companies, which declined by 11 per cent in FY20 when compared to
a 42.2 per cent growth in FY19.
The net profits of the services (non-IT) sector companies
remained in contraction, though the net profits of IT companies increased last
fiscal.
Subdued production-related activities also resulted in
lower expenditure on raw materials by manufacturing companies
last fiscal.