An RBI report reveals that the IT sector outpaced manufacturing in growth for FY25. While overall sales for non-financial companies improved, rising raw material and staff costs led to a significant contraction in sector-wide profit margins. Both manufacturing and IT sectors saw their operating profit margins decline. The Reserve Bank of India released the annual performance report of the listed private non-financial companies. IT sector companies continue to dominate the manufacturing sector in annual growth rate despite the latter’s soaring year-on-year growth in the fiscal year 2024-25.The manufacturing sector saw higher growth in its expenditure on raw materials than in sales in the fiscal year. The cost of raw materials for the manufacturing sector increased by 6.6 percent in FY25. The raw material to sales ratio also increased to 55.7 percent from 54.2 percent in FY24. The overall staff cost for the non-finance companies increased by 10 percent in FY25. While the staffing cost for the manufacturing sector increased by just 4.4 percent, for the IT sector, staffing cost saw a growth of 12 percent in the year. (ICE NEW DELHI)

Fonte notizia: Financial Express