Smaller companies bearing brunt of economic slowdown: RBI data
Mumbai: Smaller companies are mainly bearing the brunt of economic slowdown, having recorded overall losses in the first half of the current fiscal, a RBI data revealed on Wednesday.
On the other hand, larger corporates have performed better during the April-September 2012-13 which witnessed moderation in economic growth to 5.4 percent from 7.3 percent in the year ago period.
"Smaller companies (sales up to Rs 100 crore) incurred losses in H1 of 2012-13, though larger companies recorded a higher rise in net profits," RBI said in its analysis based on the performance of 2,832 listed non-government non-financial companies.
The aggregate net profit margin of the corporate sector, the analysis said, was impacted by "poor performance of smaller companies".
On an average, the companies have a recorded a rise in net profit of 4.3 percent during the first half of the current fiscal, which for 2,832 companies is estimated at Rs 91,800 crore.
The slowdown has been mainly on account of deeper moderation in sales figures of the manufacturing and non-IT services sectors.
The companies in the Information Technology (IT), however, performed better than peers in other segments.
The net profit margin of the IT sector, RBI said, was above 17 percent in first half as compared to 5.7 percent for manufacturing and 4.9 percent for non-IT services sector.
Companies in sectors such as mining and quaring, electric machinery, petroleum refinery, power generation and supply and real estate, have suffered losses during the period.
On the other hand, the sectors which performed better include food and beverages; textiles; paper products; cement; whole sale and retail trade; radio, television and communications equipment.
The analysis also revealed that the interest cost for the corporate sector shot up by as much as 24 percent, while increase in sales and expenditure worked out to be 12.3 percent and 13.6 percent, respectively.
As regards financial sector companies, the RBI analysis based on performance of 390 companies showed that there was a jump of 27.3 percent in net profit, mainly because of rise in income from operations.
It said that while their income went up by 27.4 percent, expenditure increased by only 18.9 percent.
Meanwhile, industrial output measured on IIP during the April-September period of this fiscal was 0.1 percent, down from 5.1 percent year-on-year.