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High input costs weighed on profit margins in FY25, says RBI study
The OPM of manufacturing firms moderated by 20 basis points (bps) from 14.4 in Fy24 to 14.2 per cent in Fy25
Abhijit Lele Mumbai
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The operating profit margin (OPM) of Indian private corporations across manufacturing and services sectors moderated in the financial year ended March 2025 (FY25) amid high input costs, showed a Reserve Bank of India (RBI) study released on Thursday. The pace of listed non-government non-financial (NGNF) companies' operating profit growth was also impacted in the past year.
Manufacturing firms' OPM moderated by 20 basis points (bps) to 14.2 per cent in FY25 from 14.4 per cent the previous year. The decline was sharper for companies in the information technology (IT) services sector, with their margins reducing 80 bps to 21.9 per
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