The sales growth of listed manufacturing companies in Q3FY23 dropped to 10.6% from 20.9% in the previous quarter. The moderation in manufacturing companies was observed across industries, except for cement, PTI reported, citing RBI data.
Sales growth of listed private non-financial companies also moderated to 12.7% in Q3FY23, as compared to 22.6% in the previous July-September period, the report said.
The Reserve Bank of India (RBI) has released data on the performance of the private sector during the third quarter of 2022–2023, drawn from abridged quarterly financial results of 2,779 listed non-government non-financial companies, as per the report.
However, information technology (IT) companies remained on a high growth trajectory and recorded a 19.4% rise in sales. Also, revenue growth for non-IT services companies was supported by steady performance in the trade, transport and telecommunication sectors, it said.
"Manufacturing companies' expenses on raw materials moderated marginally in line with lower sales growth and tempered prices for some inputs," the RBI said, as per the report.
Further, the central bank said the operating profit of manufacturing companies contracted on an annual basis for the second consecutive quarter in December. It, however, expanded for both IT and non-IT service companies, it added.
Meanwhile, the poor show of the manufacturing sector dragged India's GDP (Gross Domestic Product) to 4.4% in the third quarter of 2022-23, data released by the National Statistical Office (NSO) on February 28 showed.
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