Corporate profitability likely dropped 100-120 basis points (bps) on-year and 70-100 bps sequentially in the third quarter ended December 31, 2021, indicates CRISIL’s analysis of 300 companies (excluding those in the financial services, and oil and gas sectors).
This marks the first on-year decline in 12 quarters.
As many as 27 of 40 sectors tracked by CRISIL Research are likely to see their Ebitda margins shrinking.
In terms of sectors, margins in consumer discretionary likely fell 130-150 bps on-year, and in export-linked by 200-250 bps.
Says Hetal Gandhi, Director, CRISIL Research, “Companies were unable to fully pass on soaring input cost, especially key metals and energy prices. Flat steel prices were 48% higher on-year in the third quarter, while aluminium was up 41%. "
CRISIL data also showed thatCorporate revenue is seen growing a healthy 16-17% to Rs 9.1 lakh crore, driven by surging commodity prices.
(With inputs from IANS)
