The RBI said in a statement that the foreign direct investment (FDI) companies in India reported a growth in their net profit of 45.2 per cent year-on-year (YoY) to Rs 2,69,000 crores in the fiscal ended March 2023, owing to improved margins.
Accroding to the data from the RBI, FDI companies' net profit margin increased to 5.9 per cent in FY23 from 4.9 per cent in FY22 and 3.2 per cent in FY2020–21. The 2,272 companies saw an improvement during the post-COVID recovery period.
The outcome is predicated on an audit of these companies' yearly financial statements, which are submitted in accordance with Indian Accounting Standards. The performance analysis was conducted between 2021 and 2023, a span of three years.
In the fiscal year 2022, multinational corporations (MNCs) and foreign direct investment (FDI) generated a net profit exceeding Rs 1,85,000 crore.
Net Sales Growth
According to the report, the sample companies' net sales increased by 21.1 per cent as opposed to 28.6 per cent growth the previous year.
With the exception of businesses engaged in wholesale and retail commerce, the majority of the businesses were in the manufacturing and service sectors and had sales growth of more than 10 per cent.
The fiscal year 2023 saw a 20.7 per cent increase in raw material expenses due to robust economic activity. In addition to growing by 31.3 per cent in 2022, operating expenses increased by 20.7 per cent in 2023. The RBI noted that comparable growth was also seen in the manufacturing and service sectors.
Dividends
In 2023, their dividend payment increased as well. From Rs 1,45,000 crores in the previous year to Rs 2,20,000 crores in 2023, it increased by 43.66 per cent.
