Information technology (IT) sector remained in the positive terrain throughout the COVID-19 pandemic period and its sales increased by 5.2 per cent year-on-year in the third quarter of 2020-21, according to the RBI data on performance of private sector corporate released on Friday. The data is drawn from abridged quarterly financial results of 2,692 listed non-government non-financial (NGNF) companies.
With gradual easing of restrictions related to the COVID-19 pandemic and rebound in demand conditions, sales of 1,685 manufacturing companies expanded by 7.4 per cent (Y-o-Y) in October-December quarter of 2020-21 after recording contraction during the preceding six quarters. The recovery was led by iron and steel, automobiles, cement, chemicals and pharmaceuticals companies. “Information technology (IT) sector remained in positive terrain throughout the Covid-19 pandemic period and their sales increased by 5.2 per cent (Y-o-Y) in Q3:2020-21,” the RBI said while releasing the data.
Sales of 165 IT companies stood at Rs 1,05,724 crore in the third quarter, up 5.2 per cent from Rs 1,01,001 crore in the year-ago period. On the other hand, non-IT services sector recorded lower contraction annually in sales [(-)5.7 per cent in Q3:2020-21 vis–vis (-)14.5 per cent in the previous quarter], which was supported by better performance of telecommunication, real estate and trade sector companies. Staff cost growth increased for manufacturing and IT companies in October-December period of 2020-21, whereas it remained in contraction zone for non-IT services sectors. Manufacturing companies increased their expenditure on raw materials in tune with rise in sales.