Mumbai, 26 December
Profits of private companies having foreign direct investment declined by about 22 per cent during 2011-12 to Rs 444.24 billion on higher outgo for interest payment, according to RBI data.
“Steep rise in interest payments in 2011-12 resulted in decline in net profit (PAT),” RBI said in a release today.
In its data on finances of non-government non-financial foreign direct (FDI) companies, RBI audited annual accounts of select 766 companies which closed their accounts during April 2011 and March 2012. The data pertains to the companies engaged in manufacturing, services and others.
The sales of these companies increased by 18.1 per cent to Rs 8,762.99 million during 2011-12, the data showed.
The sales growth of FDI companies belonging to services sector improved in 2011-12 over that in the previous year, while it declined for those in the manufacturing sector, RBI said.
Sales of manufacturing companies rose by 16.9 per cent in 2011-12, versus a growth of 19.4 per cent in 2010-11. While, for services sector, the sales were higher in 2011-12 with a growth of 18.7 per cent from a growth of 16.8 per cent in the previous year.
Also, earnings before interest, tax, deprecation and amortisation (EBITDA) for the manufacturing sector declined in 2011-12, whereas for the services sector, EBITDA growth registered an increase.
For manufacturing sector, EBITDA declined by 22.4 per cent in 2011-12 from a rise of 7.5 per cent in the previous year. For services sector the EBITDA was at 11 per cent in 2011-12 from 4.8 per cent in 2010-11.
“EBITDA growth was low or negative in most of the industries in the manufacturing sector. In the services sector computer and related activities and transport and storage service industries led to higher growth in EBITDA,” RBI added.
RBI also said that the external sources (other than companies’ own funds) continued to play a major role in business expansion of the select FDI companies in 2011-12.
The USA, UK, Germany, Switzerland, Japan, France, The Netherlands and Mauritius were among the countries bringing in investment into these companies.