Mumbai: Reflecting a slowdown, listed non-financial companies saw their cumulative average profit declining by 12.5 percent in January-March quarter largely due to contraction in manufacturing and IT sectors, says a report by the Reserve Bank.
This is contract to 10.3 percent rise in net profit for the fourth quarter of 2013-14.
"Net Profit continued to contract in Q4 of FY15 at the aggregate level, due to a contraction in the manufacturing sector as well as the IT sector," as per the data based on performance of non-financial private corporate business sector released by the RBI.
However, it said, net profit margin improved except for the IT sector.
The report collated data of 2,712 private sector companies during the fourth quarter of the last fiscal.
RBI said that coverage of companies in different quarters varies to some extent, depending on date of declaration of quarterly results but "it is not expected to alter the aggregate position significantly".
Aggregate sales contracted in the fourth quarter following stagnation in third quarter of the last fiscal, it said.
Sales growth of the manufacturing sector contracted, impacted by contraction in some of the major industries namely petroleum products, iron & steel and machinery, it said.
A sharp contraction of 39.9 percent on annual basis is observed in the sales of petroleum products industry group, it added.
