Supported by robust demand conditions in textiles, chemicals, iron and steel
The manufacturing sector, particularly the textile, iron and steel segments, maintained the pace of sales growth in the second quarter of 2018-19 compared with the year-earlier period, the RBI said on Wednesday.
Demand conditions in the manufacturing sector “maintained its pace in the September quarter 2018-19 as reflected in strong sales growth (year-on-year),” as per the RBI analysis of 2,700 listed private sector non-financial companies.
“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,” the RBI said.
The central bank said 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.
The information technology (IT) sector also recorded further improvement in sales growth over the year-ago period.
The manufacturing sector continued to record strong growth in net profit, which received support from other income.
On the expenditure front, manufacturing companies continued to face rising input cost (cost of raw materials, staff cost) pressures. In the case of the IT sector, staff costs accelerated in tandem with the improvement in sales growth, the RBI said.