The Reserve Bank of India, on Wednesday, released the data on the performance of the private corporate business sector during the fourth quarter of 2014-15. The data compiled were based on the abridged financial results of 2,712 listed non-government non-financial companies.
Aggregate sales contracted in the fourth quarter of 2014-15, following stagnation in the third quarter, the data revealed. The contraction in sales growth was mainly from manufacturing sector, impacted by major industries such as petroleum products, iron & steel and machinery industries.
A sharp contraction of 39.9 per cent year-on-year was observed in sales of petroleum products industry group. The non-IT services sector witnessed a similar growth rate in sales as in the previous quarter.
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The IT sector slowed down to the lowest level observed in five years.
At the aggregate level, there was a reduction in expenditure. EBITDA (Earnings before interest, tax, depreciation and amortisation) grew by 3.7 per cent at the aggregate level, while it was down marginally for the manufacturing sector. EBITDA for IT sector decelerated to a historical low, for over a decade, it was observed.
The pricing power, as measured by EBITDA margin remained range-bound. The year-on-year growth in interest expenses for the fourth quarter under reference remained almost flat compared to the third quarter.
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Interest coverage ratio across sector (Earnings before Interest and tax/interest expenses) improved marginally in Q4 of 2014-15 as compared to the previous quarter.
Aggregate net profit of the private corporate business sector continued to witness a reduction in the fourth quarter of 2014-15, due to a contraction in the manufacturing sector as well as the IT sector. Except for the IT sector, the net profit margin witnessed an improvement, the data showed.