12.5 C
London
Sunday, November 27, 2022

Corporate Profitability Drops for Fourth Consecutive Quarter: Crisil

Must read

Alisa Mote Facts On Kye Kelley’s Ex Wife: Who Is Mote Dating?

Alice Mote is the ex-wife of a TV star and well-known drag racer Ky Kelley. Her former husband Kye is also a member...

Holiday travel with Covid, RSV and flu means it’s time to bring back mask mandates

Going into the holiday season last year, rising Covid-19 cases overwhelmed hospitals. This year, hospitals are overwhelmed by a combination of Covid, respiratory...

A Twitter executive got a court order to stop Elon Musk from firing her

Sinead McSweeney, Twitter's Ireland-based global vice president of public policy, has been given a temporary injunction by the Dublin High Court to avoid her...

Forget Powerball. Here’s your chance to win $1 million for $20.

Opinions expressed by londonbusinessblog.com contributors are their own. Chances are you didn't win the big $2 billion Powerball jackpot, or get a $1 million consolation...
Shreya Christinahttps://londonbusinessblog.com
Shreya has been with londonbusinessblog.com for 3 years, writing copy for client websites, blog posts, EDMs and other mediums to engage readers and encourage action. By collaborating with clients, our SEO manager and the wider londonbusinessblog.com team, Shreya seeks to understand an audience before creating memorable, persuasive copy.

Corporate Profitability is seen with a drop of 300 basis points (bps) due to higher commodity prices, Crisil said in a report.



For its part, corporate profitability — or earnings before interest, taxes, depreciation and amortization (Ebitda) margin — shrank 300 basis points (bps) year-over-year in the second quarter, marking the fourth consecutive quarter of a year-over-year decline.

The margin also shrank sequentially, albeit slightly.

EBITDA margins of 70 percent of the 47 sectors tracked by CRISIL research shrunk by year. The strongest decline was seen in the construction-related sectors, by more than 1,000 basis points year-over-year, largely due to high input costs and delays in passing those costs on to customers.

Among these sectors, EBITDA margins in steel products are likely to have contracted 1,500 basis points year-on-year as a result of higher coking coal prices and lower realizations amid a decline in flat steel prices and limited sales to the lucrative export segment.

Say Sehul BhattAssociate Director, CRISIL Research: “The increasing sales momentum is not translating proportionally into profit margins. While key commodity prices such as coking coal and crude oil have cooled sequentially, they remain high year on year, hurting corporate profits, with absolute EBITDA gains remain flat throughout the quarter, both year-on-year and sequentially. Maintaining commodity prices at current levels is key to limiting further margin contraction.”

A combination of factors such as moderate price increases and steadily increasing volumes is expected to boost operating revenues by 15 percent year-on-year to Rs 10.2 lakh crore in the second quarter of this fiscal year.

CRISIL’s analysis of more than 300 companies (excluding those in the financial services and oil and gas sectors) points out.

Of a total of 47 sectors tracked by CRISIL Research, nearly half are estimated to have outperformed total revenue growth during the quarter, with key sectors within discretionary consumer services achieving maximum year-over-year growth.

The substandard performance of the other sectors, compared to overall growth, was broadly broad-based in the construction-related products, consumer staples and industrial commodities sectors.

ALSO SEE:

You may soon be able to beat traffic by using a flying car E-commerce losses due to online fraud to more than $48 billion worldwide

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest article

Alisa Mote Facts On Kye Kelley’s Ex Wife: Who Is Mote Dating?

Alice Mote is the ex-wife of a TV star and well-known drag racer Ky Kelley. Her former husband Kye is also a member...

Holiday travel with Covid, RSV and flu means it’s time to bring back mask mandates

Going into the holiday season last year, rising Covid-19 cases overwhelmed hospitals. This year, hospitals are overwhelmed by a combination of Covid, respiratory...

A Twitter executive got a court order to stop Elon Musk from firing her

Sinead McSweeney, Twitter's Ireland-based global vice president of public policy, has been given a temporary injunction by the Dublin High Court to avoid her...

Forget Powerball. Here’s your chance to win $1 million for $20.

Opinions expressed by londonbusinessblog.com contributors are their own. Chances are you didn't win the big $2 billion Powerball jackpot, or get a $1 million consolation...

Oriini Kaipara- Wiki, age, height, net worth, boyfriend, ethnicity

Orini Kaipara is a well-known journalist from New Zealand. Kaipara is also a translator and interpreter. She is known in the media...