Private Non-Financial Firms Q4 Net Down 12.5%: RBI study
The cumulative average profit of listed non-financial companies has been declined by 12.5 per cent in January to March quarter largely because of reduction in manufacturing and IT sectors, says a report by the Reserve Bank. This statement is representing a slowdown in the net profit.
For the fourth quarter of 2013-14, there was a 10.3 per cent rise in net profit.
“Net Profit continued to contract in Q4 of FY15 at the aggregate level, due to a contraction in the manufacturing sector as well as the IT sector,” as per the data based on performance of non-financial private corporate business sector released by the RBI.
But it also stated that the net profit margin improved except for the IT sector. The report collected data on 2,712 private sector companies for the fourth quarter of the last financial year.
RBI said that data may vary for some companies as their quarter period may vary, “it is not expected to alter the aggregate position significantly”. “Aggregate sales contracted in the fourth quarter following stagnation in the third quarter of the last fiscal,” it added.
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