According to the Reserve Bank of India (RBI), sales of listed private non-financial companies grew by 7.1% in the fourth quarter of 2024-25, compared to 8% growth in the previous quarter and 6.9% in the same quarter of the previous year. This growth was driven by the performance of non-IT services companies, which saw a 10% increase in sales, led by the telecommunications and transport & storage sectors.
In contrast, sales growth in the manufacturing sector moderated to 6.6% in the fourth quarter, down from 7.7% in the previous quarter. While major industries such as electrical machinery, chemicals, food products, and pharmaceuticals saw double-digit sales growth, the weak performance of the petroleum industry pulled down the sector’s overall sales growth.
IT companies saw an improvement in sales growth, with an 8.6% increase in the fourth quarter, up from 6.8% in the previous quarter and 3.1% in the same quarter of the previous year. Non-IT services companies continued to perform well, with a 10% increase in sales.
The costs of raw materials for manufacturing companies rose by 8.3%, in line with sales growth, but the raw material to sales ratio remained stable. Staff costs increased by 10% for manufacturing companies, 6.4% for IT companies, and 9.5% for non-IT services companies. The staff cost to sales ratio remained stable for all sectors.
The operating profit of manufacturing and non-IT services companies rose by 8.1% and 18.4%, respectively, while IT companies saw a modest 2.4% increase. The operating profit margin improved for manufacturing and non-IT services companies, but declined for IT companies. Overall, the data suggests that while the manufacturing sector saw moderate growth, non-IT services companies and IT companies performed well, driven by the strong performance of telecommunications, transport & storage, and other sectors.