Demand conditions in the manufacturing sector returned to recovery mode with a softer contraction of 4.3% year-on-year in the quarter ended September in terms of nominal sales, according to RBI data. Manufacturing companies reported sales of ₹5,99,479 crore in the second quarter, compared with ₹3,97,233 crore in April-June of FY21. On expenditure, it said input cost pressure from raw materials remained subdued for the manufacturing sector in the quarter. The ICR of non-IT services companies remained below one. Also, profit margins improved across manufacturing and services companies on account of a rise in profit from cost savings.

Source: The Hindu December 25, 2020 17:28 UTC