Manufacturing firms saw strong Q4 FY21: RBI
NEW DELHI: Manufacturing companies showed strong revenue growth in the fourth quarter of 2020-21 as sales of 1,633 manufacturing companies surged by 31% year-on-year during the quarter as compared with 7.4% growth in the previous quarter, according to data released by the Reserve Bank of India (RBI).
The rise in sales was broad based, and was supported by favourable base effect as well as price effect, the RBI said. Sales of IT sector firms accelerated to 6.4% Y-o-Y in the fourth quarter of 2020-21 while those of non-IT services companies recorded a marginal growth after declining in the previous three quarters. The improvement in sales on non-IT service company was largely led by trading companies.
Though manufacturing companies increased their spending on raw materials, they still reported growth in operating profits on the back of higher rise in sales compared to expenditures. Manufacturing companies saw an average 70% increase in operating profit and 31% increase in raw material cost.
Operating profits of services sector companies (both IT and non-IT) also expanded during the quarter.
While employee cost for manufacturing companies increased by 5.4% year-on-year during fourth quarter of 2020-21, non-IT (non-financial) services companies saw a contraction of almost 9% in staff cost. Employee cost of IT Sector companies grew by 6% during the quarter.