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Manufacturing sector maintains its pace of sales growth in Q2FY19: RBI

Reserve Bank of India (RBI) in its latest report has said that Manufacturing sector, particularly textile and iron and steel segments, maintained its pace of sales growth in the second quarter of current financial year (Q2FY19) as compared to the year-ago period.  RBI said that companies in manufacturing sector posted a net profit of Rs 47,100 crore in the reported quarter, up 29.4% from the same period last year. The data was based on abridged financial results of 1,734 companies in the manufacturing sector.

It father stated that the manufacturing sector sales growth was mainly supported by robust demand conditions in chemical and chemical products, iron and steel, and petroleum products industries coupled with significant improvement recorded by textile industry. Meanwhile, the information technology (IT) sector recorded further improvement in sales growth over the year-ago period. The profit of IT sector, based on data of 172 firms, was Rs 17,700 crore in the second quarter of current financial year, up 5.8% over the July-September period of 2017-18.

However, it showed heavy moderation was seen in the sales growth of motor vehicles and other transport equipment, driven in part by a large adverse base effect, and pharmaceutical and medicine industries. On expenditure front, It underlined manufacturing companies continued to face rising input cost (cost of raw materials, staff cost) pressures. In case of IT sector, staff costs accelerated in tandem with the improvement in sales growth.

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