India's Private Sector Companies Post Higher Profits, Lower Debt: RBI

The operating profit margin as well as net profit margin of private sector corporates in India improved across major sectors during 2023-24 while their debt burden declined during the year, reflecting the growing financial strength, according to the latest data compiled by the RBI.

- AGENCIES

"The operating profits rose by 15.3 per cent during 2023-24 from 4.2 per cent growth during the previous year, at aggregate level. The operating profit growth of the manufacturing and services sector stood at 13.2 per cent and 15.5 per cent respectively, during 2023-24, from (-) 3.9 per cent and 16.8 per cent growth in 2022-23," according to the RBI report.

The profit after tax increased by 16.3 per cent during 2023-24; services sector companies recorded much higher post-tax profit growth of 38.1 per cent when compared to that in the manufacturing sector's 7.6 per cent.