Non-financial FDI firms see 19 pc growth in Net during FY15

MUMBAI: Net profit of non-government non-financial ( NGNF) foreign direct investment companies increased by 19.7 per cent to USD 576,649 million in 2014-15, the Reserve Bank released today showed.

"Net profit (Profit after Tax) growth improved to 19.7 per cent in 2014-15 as compared with 11.8 per cent in the previous year", RBI said.

The net profit of these companies was at USD 481,804 million in 2013-14, showed the data.

The data relates to 3,320 non-government non-financial (NGNF) foreign direct investment companies which closed their accounts during the period April 2014 to March 2015.

RBI said the data is based on the Ministry of Corporate Affairs (MCA) systems.

Total sales of these companies improved by 13 per cent at USD 5,440,264 million in 2014-15, it said.

The performance of NGNF FDI companies improved in 2014-15 as compared to the previous year, RBI said.

"Sales and value of production of select FDI companies grew at higher rates in 2014-15. Sales grew by 13 per cent in 2014-15 as compared with 11 per cent recorded in 2013-14."

However, the growth in operating profit moderated to 14.6 per cent in 2014-15 from 16.2 per cent in 2013-14, mainly due to increase in manufacturing and other operating expenses, RBI said.

RBI said the select FDI companies relied mainly on external sources of funds for expanding their business and their share had increased in 2014-15 as compared to the previous year.

Funds were predominantly used for Gross Fixed asset formation as well as in non-current investment.