Private sector companies' PAT declines 9.9% in Q2 FY16: RBI
Among the sectors, services other than IT recorded a contraction in net profits, RBI said in the date released on Thursday.
The country's private sector companies saw a dip of 9.9% in Profit After Tax (PAT) for the second quarter of this fiscal, compared to 25.6% growth in the year-ago period, RBI data showed.In the first quarter, there was a contraction in the net profit at -9.5%.
"Among the sectors, services (other than IT) recorded a contraction in net profits," RBI said in the data released on Thursday on the performance of non-financial private firms during the second quarter of FY16.
The data is based on the abridged financial results of 2,711 listed non-government non-financial companies.
During the quarter, the aggregate sales contracted further primarily due to a sharp contraction of 37.2% in the sales of petroleum products industry group. Sales in the manufacturing sector also contracted by 7.8%.
The services sectors (other than IT sector) recorded an improvement in sales growth (year-on-year) in comparison with the previous quarter. Expenditure contracted at a higher rate than sales at the aggregate level.
The cost of raw materials to sales ratio declined from 56.9% in Q2 FY15 to 51.6% in Q1 FY16 and further down to 50.8% in Q2 FY16.
At the aggregate level, year-on-year Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) growth improved from 3.7% in Q1 FY16 to 8.9% in Q2 FY16. "This improvement was observed across all the sectors," RBI said.
Pricing power as measured by EBITDA margin remained at the level observed in the previous quarter for the aggregate as well as the manufacturing sector.
IT sector recorded an improvement in both EBITDA and net profit margins.