6 days ago
RBI Reports Higher Manufacturing Costs, Stronger Profits in Q1 FY27
Companies paid much more for the materials they use to make products.
Their raw material costs rose 27.5% compared with the same period last year.
The Reserve Bank of India linked the increase to disruptions in global supply chains.
Even with higher costs, manufacturing companies were able to keep their pricing power.
Their operating profit growth increased to 21.3% from 9.4% in the previous quarter.
Sales growth also became faster across many listed companies.
IT and non-IT services firms recorded operating profit growth of 19.9% and 12.7%.
This means companies generally earned more from their operations despite rising costs.
Raw material expenses of listed manufacturing companies rose 27.5% year-on-year in Q1 FY27 amid global supply disruptions.
The raw material-to-sales ratio edged down to 58.1% from 58.5% in the previous quarter.
Manufacturing operating profit growth accelerated to 21.3% from 9.4% sequentially.
Aggregate sales growth among 3,247 listed non-government non-financial companies rose to 19.4% from 13.9%.
Operating profit growth reached 19.9% for IT companies and 12.7% for non-IT services firms.
- Who
- The Reserve Bank of India and listed manufacturing, IT, and non-IT services companies.
- What
- The RBI reported rising input costs alongside stronger sales and operating profit growth among listed companies.
- Where
- Mumbai.
- When
- The first quarter of FY27; the RBI report was issued on Thursday.
- Why
- Global supply chain disruptions increased raw material expenses.
Key facts
- Companies covered
- 3,247 listed non-government non-financial companies
- Manufacturing companies covered
- 1,827 listed manufacturing companies
- Raw material expense growth
- 27.5% year-on-year in Q1 FY27
- Raw material-to-sales ratio
- 58.1%, down from 58.5% in the previous quarter
- Manufacturing operating profit growth
- 21.3%, up from 9.4% in the previous quarter
- Aggregate sales growth
- 19.4%, up from 13.9% in the previous quarter
- Staff-cost growth
- 12.4% for manufacturing, 7.6% for IT, and 11.2% for non-IT services
Sources
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