Reserve Bank Of India (RBI)

Last month government released data regarding the performance of non-financial private corporate business sector during last financial year. The data compiled are based on the available abridged financial results of listed non-government non-financial companies.

Overall Financials

Particulars FY 15 FY 14 Growth %
No of companies 2,925 2,854 5.75
Sales 31,191 29,496 6.08%
Expenditure 27,101 25,771 5.16%
EBITDA 4,229 3,764 12.34%
EBITDA Margins 13.56% 12.76%
EBIT 3,969 3,482 13.98%
Interest 1270 1,091 16.39%
Tax Provision 770 618 24.65%
Net Profit 1,825 1,706 6.99%
Interest Coverage Ratio 3.10 3.20
Cost of raw material/sales 44.54% 47.12%
Interest Coverage Ratio 8.32% 7.55%

*Table 1 INR in billion

Private Sector

Though sales have not shown any growth, EBITDA margin increased by 80 Bps in spite of an increase in staff cost by 77bps. This seems to be because of lower raw material cost and constant or marginal reduction in power cost. Stress is visible from reduction in interest coverage ratio and increased tax provision

Sector Wise

Particulars Manufacturing Service IT
FY 15 FY 14 FY 15 FY 14 FY 15 FY 14
No. of companies 1973 1951 501 472 217 209
Sales 22,613 21,968 3,052 2,814 2,613 2,253
EBITDA 2,598 2,403 547 444 646 575
EBITDA Margin 11.5% 10.9% 17.9% 15.8% 24.7% 25.5%
Interest coverage ratio 3.2 3.3 2.6 2.0 32.2 23.0
Staff cost/ sales 5.26% 4.66% 6.64% 6.10% 39.54% 38.47%

*Table 2 INR in billion

In terms of EBITDA, service sector grew fastest, while in interest coverage IT sector had improved performance. The increase in staff cost is common to all sectors.

 

Top five industry in terms of sales

Particulars FY 14-15 FY 13-14
Coke, refined petroleum product & nuclear fuel
Sales 4,207 4,970
EBITDA % 8.9 % 7.2%
Chemical & Chemical product
Sales 2,613 2,253
EBITDA % 14.4% 14.4%
Computer & Related Activities
Sales 4,207 4,970
EBITDA % 24.7 % 25.5%
Motor Vehicle
Sales 2,311 1,956
EBITDA % 10.2% 9.9%
IRON & STEEL
Sales 2,275 1,774
EBITDA % 14.6% 15.5%

*Table 3 INR in billion

Power sector including petroleum products shows a substantial reduction in sales mainly because of reduction in price and not because of reduction in volume. All other sector shows growth in top line and except computer etc., all other sectors show increase in EBITDA margin

With the change in central government, India emerged as the ‘darling’ of investors as the new party in power promised to unlock stuck projects, put renewed focus on ease of doing business and openly welcome companies to ‘Make in India’.

Despite positive headwinds, Weak demand, constrained financial flexibility of major players, and the risk aversion of financiers continues to impact investments in the Indian economy. However better utilization of present capacity, overall growth is around 8%, if one excludes reduction in top line of petroleum sector which is quite healthy in spite of prevailing economic situation in the world

Reserve Bank Of India-RBI

*Note: – The classification of industries and sectors broadly follows the National Industrial Classification (NIC). The manufacturing sector in tables 2 and 3 consists of industries like Iron & Steel, Cement & Cement products, Machinery & Machine Tools, Motor Vehicles, Rubber, Paper, Food products etc. This does not include ‘Tea Plantations’ and ‘Mining & Quarrying’ industries. The services (non-IT) sector includes Real Estate, Wholesale & Retail Trade, Hotel & Restaurants, Transport, Storage and Communication industries. This does not include Construction and Electricity Generation & Supply Industries.

All the tabular data is taken from this link

Main Contributor : Aniruddha (@an1ruddha )

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2 Comments

  1. pennacement says:

    cement plants in india
    Penna Cement founded in 1991, Penna Cement has established itself as one that makes the best quality cement in India, with significant footprints in India.

  2. India Cements says:

    India Cements Limited is a cement manufacturing company in India. It was established in 1946 by S. N. N. Sankaralinga Iyer and the first plant was set up at Thalaiyuthu in Tamil Nadu in 1949.

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