41 per cent gap in sales of manufacturing companies

Mumbai, Ta. Wednesday, October 21, 2020

In the first quarter of the current financial year, the overall sales of private companies in the country's manufacturing sector were down 21.10 per cent year-on-year. The lockdown imposed by Corona had a far-reaching impact on the manufacturing sector, according to a report by the Reserve Bank.

The RBI's findings are based on the quarterly results released by 1,412 listed private companies in the manufacturing sector. In the fourth quarter of the financial year 2016-20, sales declined by 12.50 per cent.

The manufacturing sector, excluding pharmaceuticals, had an impact on the sales of most companies. Sales of pharma companies have seen growth on both annual and quarterly basis.

Sales of non-IT services companies also declined by 21 per cent. With the exception of telecom, most of the service sector companies have seen a decline in sales. On the other hand, the sales growth of IT companies has been in the positive zone.

The RBI report also showed a decline in operating profit and non-IT services sector companies. The operating profit of IT companies grew by 2.50%.

Due to Corona, the Securities and Exchange Board of India (SEBI) had extended the deadline for submitting its financial results to listed companies to September 15, 2020.