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
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
*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 )
