Corporate profitability to decline for fourth consecutive quarter: Crisil
On its part, corporate profitability -- or earnings before interest, taxes, depreciation and amortisation (Ebitda) margin -- contracted 300 basis points (bps) on-year in the second quarter, marking the fourth consecutive quarter of on-year decline.
The margin contracted sequentially as well, albeit slightly.
Ebitda margins of 70 per cent of the 47 sectors tracked by
Among these sectors, Ebitda's margin in steel products is likely to have contracted by 1,500 bps on-year due to elevated coking coal prices and lower realisations amid a drop in flat steel prices and sales to the lucrative export segment are limited.
A combination of factors such as moderate price hikes and steadily rising volumes is expected to lift corporate revenue 15 per cent on-year to Rs 10.2 lakh crore in the second quarter of this fiscal.
CRISIL's analysis of over 300 companies (excluding those in the financial services, and oil and gas sectors) indicates as much.
Of the total 47 sectors tracked by CRISIL Research, nearly half are estimated to have outpaced overall revenue growth during the quarter, with key sectors within consumer discretionary services logging maximum on-year growth.
You may soon be able to beat the traffic by using a flying carE-commerce losses due to online fraud to exceed $48 bn globally
Popular on BI
- Electricity prices in Finland flipped negative — a huge oversupply of clean, hydroelectric power meant suppliers were almost giving it away
- Family stands to lose nearly $6,000 in airfare and hotel costs after they were bumped from an overbooked cruise ship
- Flyers are 'skiplagging' to try and save money on flight tickets. Airlines hate it.
- List of Famous things to buy in Srinagar
- What you need to know when you exercise your stock option plan
- BGMI release date announced: Available to Android users for download starting today
- Gangubai Kathiawadi tops technical awards at 23rd IIFA's music-loaded opening
- About 27K employees lost jobs at Indian startups to date, over 8K this year