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Finances Of Non-Government Non-Financial (NGNF) Public Limited Companies, 2015-16

The Reserve Bank of India today released on its website (https://dbie.rbi.org.in/DBIE/dbie.rbi?site=statistics#!2_44) data relating to finances of non-government non-financial (NGNF) public limited companies, 2015-16. The data have been compiled on the basis of audited annual accounts of select 19,602 NGNF public limited companies, accounting for 39.9 per cent of population’s paid-up capital. The data have been presented for the three year period of 2013-14 to 2015-16 to facilitate comparison. ‘Explanatory notes’ on the data are given in Annex.

Highlights
  • Sales growth for the select NGNF public limited companies was lower during 2015-16 than in 2014-15.
  • By contrast, operating profits grew on account of contraction in manufacturing expenses.
  • Profit after tax (PAT) grew at a slower rate in 2015-16 than in the preceding year (Statement 1).
  • There was a marginal increase in dividend to net worth ratio in 2015-16 from a year ago (Statement 2).
  • The ratio of long-term borrowings to equity (debt/equity ratio) declined marginally in 2015-16 from its level in 2014-15, while the interest coverage ratio (measured by EBIT to interest expenses) improved steadily during the reference period (Statement 2).
  • Companies with sales of less than Rs. 250 million continued to experience contraction in sales in 2015-16 while sales growth decelerated sharply for companies with sales of Rs. 10 billion and above although their operating profits growth improved with contraction in manufacturing expenses (Statement 7).
  • Mining and quarrying and dairy products, sugar, textiles, iron and steel, fabricated metal products, and computer and electronic equipment were the industries in the manufacturing sector that experienced contraction in sales in 2015-16 with some of them facing contraction in operating profits (Statement 11).
  • Manufacturing as well as services sector companies showed improved profit margins in 2015-16; however, industries such as dairy products, iron and steel, and jewellery in the manufacturing sector and computer services in the services sector recorded subdued profit margins (Statement 12).

An article analysing the performance of NGNF public limited companies at the aggregate and granular levels will be published in the May 2017 issue of the RBI Bulletin.



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