Listed companies’ operating profit growth slowed in Q4 FY22: RBI data

Growth in operating profits of listed private companies slowed across major sectors in the January-March quarter of 2021-22, due to higher spending, according to RBI data.

The Reserve Bank has released its private enterprise sector performance data during the fourth quarter (Q4) of 2021-22 drawn from the abbreviated quarterly financial results of 2,758 listed non-government non-financial corporations (NGNFs).

The operating profit of manufacturing companies decelerated sharply to 7% in the fourth quarter of the last financial year against 70% in the corresponding quarter of the previous financial year.

In the case of companies in the services sector (excluding IT), operating profit growth slowed to 6.1% in the fourth quarter of 2021-2022, from 62.5% a year ago.

Operating profit in the event IT business slowed to 5.9 percent from 19.7 percent.

RBI data further indicates that sales of 2,758 listed private non-financial companies recorded a healthy growth of 22.3% (year-on-year) in the fourth quarter of 2021-2022, compared to 22.8% in the comparable quarter of 2021-2022. ‘last year.

“Total sales of 1,709 listed private manufacturing companies recorded steady (year-on-year) growth of 24.6% in the fourth quarter of 2021-2022, driven by strong sales growth in the petroleum, metals and non-ferrous, iron and steel, chemicals and textiles,” the RBI said.

Information technology (IT) companies continued their growth trajectory with sales growth of 20.7% during the fourth quarter of 2021-2022.

Sales of non-IT services businesses rose 20.9% (year-on-year) in the January-March 2021-22 period, driven by steady growth in transportation, commerce, telecommunications, the hotel and catering industry.

Despite the increase in spending, manufacturing companies maintained their operating margins and net profit margins in the fourth quarter of 2021-2022 compared to the previous quarter.

The net profit margin remained stable for IT companies, while for non-IT services companies it remained in negative territory due to losses recorded by telecommunications and transport companies, the RBI said.

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