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.