Quick Summary
The Reserve Bank of India (RBI) has released its latest data on the financial performance of non-government non-financial (NGNF) foreign direct investment (FDI) companies in India for FY 2024-25, highlighting a mixed trend of moderated sales growth, rising expenses, and improved profitability. The data, compiled from audited annual accounts of over 3,100 companies following Indian Accounting Standards (Ind-AS), provides a detailed snapshot of how FDI-backed companies performed over the past thr
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FAQ :
The latest RBI data, based on over 3,100 companies, indicates that FDI companies in India saw moderated sales growth of 8.7% in FY25, alongside rising operating expenses. However, profitability improved, with profit after tax increasing by 22.2%.
Singapore, the USA, and Mauritius are the primary sources of direct investment for more than half of the sample FDI companies in India. Other significant sources include Japan, the Netherlands, and the United Kingdom.
Net sales growth in the services sector saw a marginal increase to 12.7% in FY25, while the manufacturing sector experienced a deceleration, with growth slowing to 5.1%.
Operating expenses rose to 9.1% in FY25 mainly due to increases in manufacturing expenses and remuneration to employees.
Yes, despite moderated sales growth and increased expenses, operating profit growth reduced to 10.7% but profit after tax increased by 22.2%, supported by higher non-operating income and lower interest expenses.
The debt-to-equity ratio for the sample FDI companies stood at 25.0% in FY25. The interest coverage ratio, a measure of debt servicing capacity, improved to 5.8.
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