Firms with annualised sales greater than Rs 1,000 crore recorded relatively higher growth in sales as well as higher profit margins than their smaller counterparts in the first half of 2012-13.
A new RBI data series analysing the performance of 2,835 listed, private, non-financial companies revealed that large companies’ sales grew by 14.6 per cent and net profits by 7.8 per cent in the first half of FY13. This was a decline from 20.8 per cent sales growth, but an improvement from a 12.7 per cent fall in net profit in the second half of 2011-12
In contrast, medium-size companies’ sales growth increased marginally in the first half of 2012-13 after a sharp decline in the second half of 2011-12 and consequently, their profit margins witnessed an improvement in April-September, 2012. Medium-sized firms with annualised sales of Rs 100-1,000 crore registered lower sales growth of 3.8 per cent and their net profits fell by 27.1 per cent in the first half of the current financial year.
Small companies have been the worst performers in recent times, with their sales declining for five consecutive half years and net losses recorded since the second half of 2010-11.