Growth in the sales of 2,745 non-financial private sector companies declined sharply to 9.2 per cent at Rs 7.5 lakh crore in Oct-Dec 2012 from 19.2 per cent in the year-ago period. Data released by Reserve Bank of India (RBI) on these companies shows.
During Jul-Sep 2012, sales of these firms expanded 11.3 per cent. The sales growth in Oct-Dec 2012 quarter is said to be the lowest in the post-2008 crisis period.
The fall in the sales growth is attributed to the subdued economic activity and high interest rates. This was the first time the sales growth touched a single-digit mark since the 2008 global financial crisis, triggered by the collapse of Lehman Brothers, the Wall Street investment bank.
During Oct-Dec 2012, the net profit of these firms rose 23 per cent, which is similar to the previous quarter. During the third quarter of 2011-12, the net profit of these companies declined 31.3 per cent.
Growth in operating earnings or Ebitda and net profits remained positive for a consecutive quarter on a year-on-year basis, although they were lower than the previous quarter.
The operating profit margin of these companies, however, declined in the third quarter. With negligible support from ‘other income’, gross and net profit margins recorded a sharper decline, RBI said in the report.
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