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Performance of the Private Corporate Business Sector during Fourth Quarter of 2012-13 – Data Release

The Reserve Bank of India today released, on its website, the data on the performance of non-financial private corporate business sector during fourth quarter of 2012-13 (January-March 2013).

The data compiled are based on the abridged financial results of 2,686 listed non-government non-financial (NGNF) companies.

To enable comparison, similar data pertaining to Q3:2012-13 and Q4:2011-12 are also presented.

Coverage of companies in different quarters varies to some extent, depending on the date of declaration of quarterly results but it is not expected to alter the aggregate position significantly.

˜Explanatory Notes™ containing the brief methodology followed for compilation of data and the glossary of terms are given at the end.

Highlights:

  • Sales growth continued to decelerate for six succesive quarters and reached the lowest since Q2:2009-10.
  • Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) and net profits contracted after observing growth in the preceeding two quarters – Q2 and Q3 of 2012-13.
  • Growth in interest expenses slowed down as compared with the previous quarter, resulting in lesser interest burden and improved interest coverage ratio.
  • EBITDA and Earnings before Interest and Tax (EBIT) margins improved slightly, net profit margin declined nominally.
  • Slide in sales growth (Y-o-Y) is spread across manufacturing and non-IT services sectors. IT sector witnessed some increase in sales growth in comparison to the previous quarter.
  • EBITDA growth improved for the IT sector and slowed down for the manufacturing sector. EBITDA contracted for non-IT services sector. Net profits contracted for all three sectors.
  • Large companies witnessed a slower increase in sales and expenditure with marginal rise in EBITDA and contracting net profits. Companies with sales between `5 – `10 billion performed better than the previous quarters. All other companies witnessed contraction.

Tags: AmortizationDepreciationEarnings before interest and taxesEarnings before interest taxes depreciation and amortizationEBITDAfinanceNet profitReserve Bank of India

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