Mumbai: Corporate India has performed poorly in the first half (April-September) of the current financial year, recording a decline in the growth rate of sales and profits, a Reserve Bank report has said.

"The ...companies showed lower business activity in the first half of 2007-08, reflecting a deceleration in consumer demand, signs of which surfaced from the last quarter of 2006-07," RBI said in a report on the performance of private corporate sector.
 
Sales and net profit growth rates of 2,082 companies at 17.4 per cent and 31.1 per cent, respectively, were substantially lower compared to the rates recorded in the same period last year, the RBI report said.

The growth rate of sales during the first half of the current fiscal decelerated to 17.4 per cent from 27.4 per cent in the corresponding period last year.

Operating profit of companies recorded an increase of 20 per cent against 43.3 per cent in the corresponding period last year.

Similarly, the increase in net profit growth rate during the same period came down to 31.1 per cent from 41.6 per cent.

The companies, however, improved their realisation from 'other income', indicating higher inflows from treasury operations and allied activities.

According to the RBI, the other income during first half of the fiscal registered an increase of 63.6 per cent as compared to 19.3 per cent during the corresponding period in 2006-07.

The report comes at a time when the third quarter results of corporates have just started coming in.

The RBI, meanwhile, is expected to keep interest rates unchanged in the near term despite the challenge of curbing inflation in 2008.