RBI releases minutes of MPC; all 6 members vote for status quo

Inflation major concern among members

by Janhavi Behere

The RBI released minutes of the MPC meeting which was held during 5-6 April 2017. While all six members voted to keep the policy repo rate unchanged at 6.25 per cent, Dr.Michael Patra came close to suggesting a 25 basis points increase in the policy rate. All members expressed concern regarding the firming up of inflation pressures especially due to rising rural wages, narrowing output gap, implementation of 7th central pay commission’s higher house rent allowances and rollout of GST. Additionally, looming possibility of El Nino conditions was also taken into consideration while voting for the status quo.

References
1. https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=40224
CMIE STATISTICS
Unemployment Rate
Per cent
4.4 -0.1
Consumer Sentiments Index
Base September-December 2015
94.5 +0.2
Consumer Expectations Index
Base September-December 2015
94.5 0.0
Current Economic Conditions Index
Base September-December 2015
94.6 +0.5
Quarterly CapeEx Aggregates
(Rs.trillion) Sep 16 Dec 16 Mar 17 Jun 17
New projects 2.38 1.50 2.97 1.68
Completed projects 2.23 0.95 1.86 1.12
Stalled projects 0.65 1.01 0.35 2.50
Revived projects 0.91 0.18 0.62 0.29
Implementation stalled projects 0.38 0.82 0.33 0.67
Updated on: 19 Sep 2017 8:20PM
Quarterly Financials of Listed Companies
(% change) Sep 16 Dec 16 Mar 17 Jun 17
All listed Companies
 Income 2.1 6.2 10.3 10.2
 Expenses 1.9 6.4 11.9 10.5
 Net profit 14.6 40.3 17.0 -18.4
 PAT margin (%) 6.9 6.1 6.1 5.4
 Count of Cos. 4,500 4,502 4,419 4,191
Non-financial Companies
 Income 0.6 6.0 11.8 10.8
 Expenses -0.2 7.3 15.6 11.0
 Net profit 26.6 24.6 -1.9 -23.7
 PAT margin (%) 6.9 6.2 6.3 5.3
 Net fixed assets -9.2 7.6
 Current assets 8.1 2.2
 Current liabilities 11.6 8.6
 Borrowings 3.1 5.0
 Reserves & surplus 8.4 6.5
 Count of Cos. 3,481 3,487 3,431 3,276
Numbers are net of P&E
Updated on: 19 Sep 2017 8:30PM
Annual Financials of All Companies
(% change) FY13 FY14 FY15 FY16
All Companies
 Income 12.6 10.0 5.0 1.0
 Expenses 12.8 9.8 5.1 1.2
 Net profit 1.0 -2.3 1.3 -15.3
 PAT margin (%) 3.5 3.2 3.2 3.0
 Assets 14.3 12.3 9.4 8.8
 Net worth 9.6 9.6 8.8 7.6
 RONW (%) 6.8 6.2 6.1 5.3
 Count of Cos. 25,765 23,387 22,783 18,995
Non-financial Companies
 Income 11.9 9.7 4.1 0.0
 Expenses 12.3 9.3 4.3 -0.6
 Net profit -8.4 -2.6 -6.0 6.1
 PAT margin (%) 2.4 2.2 2.1 2.7
 Net fixed assets 12.9 11.6 13.1 13.9
 Net worth 7.9 8.2 7.3 6.9
 RONW (%) 5.5 5.1 4.9 5.6
 Debt / Equity (times) 1.1 1.1 1.1 1.0
 Interest cover (times) 2.1 2.0 1.9 2.0
 Net working capital cycle (days) 72 69 67 67
 Count of Cos. 20,150 18,670 18,284 15,583
Numbers are net of P&E
Updated on: 04 Sep 2017 1:48PM

Time-series available since 2007-08

Growth dropped to 5-quarter low during Q1 2017-18