The information technology (IT) sector moved in a positive trajectory throughout the Covid-19 pandemic period and their sales increased by 5.2% year-on-year in Q3:2020-21, according to the RBI data on the 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 the 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 percent (Y-o-Y) in the 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 pharmaceutical companies. "Information technology (IT) sector remained in the positive terrain throughout the Covid-19 pandemic period and their sales increased by 5.2 percent (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.
Staff cost growth increased for manufacturing and IT companies in the 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.
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