RBI-Finances of Foreign Direct Investment (FDI) Companies, 2011-12 - Data Release
December, 27th 2013
The Reserve Bank of India today released on its website, data related to Finances of Non-Government Non-Financial (NGNF) Foreign Direct Investment (FDI) Companies, 2011-12 based on audited annual accounts of select 766 companies which closed their accounts during April 2011 and March 2012. The study includes 715 companies covered in the regular studies on finances of non-government non-financial (NGNF) public/private limited companies for the year 2011-12 published earlier and 51 additional FDI companies. It provides a comparative picture over the three-year period 2009-10 to 2011-12. ‘Explanatory notes’ on data are given at the end.
Growth in sales of select FDI companies at the aggregate level improved marginally in 2011-12. Higher growth in operating expenses than that of value of production (VoP) led to decline in earnings before interest, tax depreciation and amortisation (EBITDA).
Steep rise in interest payments in 2011-12 resulted in decline in net profit (PAT). Gross savings of select FDI companies contracted further in 2011-12.
Profit margin of the select companies also declined in 2011-12.
Sales growth of FDI companies belonging to services sector improved in 2011-12 over that in the previous year, while it declined for those in the manufacturing sector.
EBITDA for the manufacturing sector declined in 2011-12, whereas for the services sector, EBITDA growth registered an increase.
EBITDA growth was low or negative in most of the industries in the manufacturing sector. In the services sector ‘computer and related activities’ and ‘transport and storage service’ industries led to higher growth in EBITDA.
Total net assets of select companies grew at a lower rate in 2011-12, both in manufacturing and services sectors.
Net worth of select companies grew at a lower rate in 2011-12, consequent on lower profit growth.
Total borrowing of selected companies also grew at a lower rate in 2011-12 as compared with 2010-11. However, select companies in manufacturing sector had marginally higher growth in borrowings.
Debt (which generally represents the long term component of the borrowings) to equity ratio of the select companies declined marginally in 2011-12.
The external sources (i.e., other than companies’ own funds) continued to play a major role in business expansion of the select FDI companies in 2011-12. Share of gross fixed asset formation in uses of funds remained similar to the previous year’s level.
An article analysing the performance of select FDI companies at the aggregate level as well as based on share of FDI, country of origin of FDI and industry, covering a longer period will be published in the January 2014 issue of the RBI Bulletin.