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RBI Says India Inc Sales Rebound to 10.1% in Q3 as Manufacturing Leads, Net Profit Growth Slows

Rising input plus payroll costs kept aggregate profit growth at 5.2%.

Overview

  • Sales of 1,794 listed manufacturing firms rose 11.4% year on year, led by automobiles, electrical machinery and non-ferrous metals.
  • Services showed divergence, with IT sales up 8.8% and operating profit growth at 11.1%, while non-IT services’ operating profit growth eased to 4%.
  • Raw material expenses for manufacturing increased 12.7% year on year, and the raw‑material‑to‑sales ratio climbed to 57.5%, signaling input cost pressure.
  • Staff costs accelerated, rising 12.4% for manufacturing and 6.6% for IT, with non-IT services seeing a moderation in staff cost growth to 8.3%.
  • Manufacturing operating margins softened sequentially even as services-sector margins improved, and aggregate net profit growth remained below the year-ago 11.8% despite a pickup from Q2’s 1.5%.