Private companies showed healthy growth in FY 08: RBI
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Mumbai: Despite high interest rates and tax provisions, private corporates in the country posted a 26 per cent jump in their net profits in FY 08, primarily driven by a healthy sales growth, Reserve Bank of India (RBI) data said.
Banks can't rest on their laurels: RBI
The net profits clocked by 2,359 non Government, non-financial companies in 2007-08 stood at Rs 1,34,291 crore, up 26.2 per cent, as compared to Rs 1,11,107 crore in the previous fiscal, RBI's September bulletin said.
RBI will keep an eye on inflation, economy
Total sales, during the period, grew by 18.3 per cent in spite of a 'noticeable' 14.8 per cent increase in the depreciation provisioning and a whopping 28.8 per cent jump in the interest payments, the bulletin said.
The total provisioning made by corporates in FY 08 escalated to Rs 40,664 crore in the fiscal as compared to Rs 37,095 crore in the previous year.
Similarly, the total interest payments escalated to Rs 25,677 crore as against Rs 21,500 crore in FY 07, it said.
Companies in manufacturing and IT sectors lagged behind those in services sector owing to their inability to pass on higher costs in raw materials, fuel and transportation, it said.
Gross profits of textile sector dipped by 6.7 per cent during the period, hit by high expenditure compared to sales, mainly due to higher input prices, the bulletin said.
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