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Stagnation in sales and sustained profitability characterised performance of the private corporate business sector during the first quarter of 2016-17
October, 27th 2016

Aggregate sales growth (Y-o-Y) of the listed non-government non-financial companies slowed down to 0.1 per cent in Q1:2016-17, due to contraction in sales of manufacturing and services (other than IT) sector. Expenditure, at the aggregate level, continued to contract, though at a lower rate as compared with the previous quarter. This resulted in a slowdown in operating profit at the aggregate level. Net profit growth also decelerated at the aggregate level. This was revealed in the data compiled and released today by the Reserve Bank of India on its website. The data is based on abridged financial results of 2,775 listed non-government non-financial companies for Q1:2016-17.

The Reserve Bank compiles and releases data based on abridged financial results of listed non-government non-financial companies quarterly and annually. Data pertaining to Q1:2015-16 and Q4:2015-16 are also presented in the tables to enable comparison. The data can be accessed at!2_42.

Other Highlights


  • Aggregate sales decelerated to 0.1 per cent after marginal revival in the last quarter. Sales growth contracted for the manufacturing sector and the services (other than IT) sector while it decelerated for the IT sector (Table 2A).


  • At the aggregate level and in the manufacturing sector, contraction in raw material expenses slowed down while the services (other than IT) sector recorded a steeper contraction. (Table 1A, 2A). Y-o-Y growth rate of staff cost increased at the aggregate level due to higher staff cost growth in the manufacturing and IT sectors (Table 2A).

  • Cost of raw materials to sales ratio increased at the aggregate level and for the manufacturing sector. Staff cost to sales ratio increased across all three sectors (Table 1B, 2B).

Operating profit

  • At the aggregate level, operating profit decelerated to 9.6 per cent in Q1:2016-17 from 16.8 per cent in the previous quarter (Table 1A).

  • For the manufacturing sector, growth in operating profit in Q1: 2016-17 was almost similar to that of the previous quarter. However, it recorded a sharp deceleration for both services sector (other than IT) and the IT sector (Table 2A).


  • Y-o-Y growth in interest expenses moderated at the aggregate level (Table 1A). Within the services (other than IT) sector, the ‘Telecommunications’ industry continued to record high growth in interest expenses (Table 5A).

Net profit

  • Net profit growth at the aggregate level declined to 11.2 per cent in Q1:2016-17 from 16.4 per cent in the previous quarter (Table 1A).

  • Among the sectors, net profit decelerated significantly for the IT sector, contracted substantially for the services (other than IT) sector and improved for the manufacturing sector (Table 2A).

Pricing power

  • Pricing power measured by operating profit margin increased in Q1:2016-17 as compared with the previous quarter at the aggregate level and the manufacturing sector. It declined for the services sector (other than IT) and remained at similar levels for the IT sector (Table 1B, 2B).

Ajit Prasad
Assistant Adviser

Press Release : 2016-2017/1040

List of Tables
Table No. Title
1 A Performance of Non – Government Non-Financial Companies Growth Rates
B Select Ratios
2 A Performance of Non-Government Non-Financial Companies - Sector – wise Growth Rates
B Select Ratios
3 A Performance of Non-Government Non-Financial Companies according to Size of Paid-up-Capital Growth Rates
B Select Ratios
4 A Performance of Non-Government Non-Financial Companies according to Size of Sales Growth Rates
B Select Ratios
5 A Performance of Non-Government Non-Financial Companies according to Industry Growth Rates
B Select Ratios
Explanatory Notes


  • Coverage of companies in different quarters varies at times, depending on the date of declaration of results. This, however, is not expected to significantly alter the aggregate position.

  • Since Q1:2016-17, major listed companies, as mandated by the Ministry of Corporate Affairs (MCA), have moved into the Indian Accounting Standards from Indian GAAP. The impact of transition, although noticeable for some companies, is inferred to be muted at the aggregate level for the growth rates. The same may not hold for the ratios, particularly at the disaggregated levels and may require to be interpreted accordingly.

  • ‘Explanatory Notes’ containing the brief methodology followed for compilation of data and the glossary (including revised definitions and calculations that differ from previous releases) are given at the end.

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