Private Companies Showcase Mixed Financial Performance in Q4:2024-25

According to RBI data, private non-financial companies saw a 7.1% growth in sales for Q4:2024-25. While some industries showed strong performance, weak results in the petroleum sector affected overall growth. IT companies experienced improved sales, and non-IT services continued robust growth. Manufacturing costs rose alongside sales.

The Reserve Bank of India's latest figures reveal a moderate growth in sales for listed private non-financial companies, achieving a 7.1% increase in the January-March quarter of 2024-25. This marks a slowdown from the previous quarter's 8% growth, yet still surpasses the 6.9% increase recorded just a year ago.

The performance report, drawn from quarterly results of 2,936 companies, highlights the restrained progress of 1,659 listed private manufacturing companies, whose yearly sales growth tapered to 6.6% from 7.7% observed in Q3. While sectors like electrical machinery and chemicals posted double-digit sales upticks, a slump in the petroleum industry dragged down overall performance.

In contrast, IT companies improved their sales growth to 8.6%, driven by digital demand trends, while non-IT service entities enjoyed a strong 10.9% growth. Despite climbing raw material costs and stable raw material-to-sales ratios, manufacturing, IT, and non-IT services companies each faced increased staff costs across the board.