Corporate profitability likely fell in Q3 after 11 quarters: Crisil
The Hindu
‘But, revenue momentum sustained by price increases’
Profitability of companies in India, as defined by the earnings before interest, taxes, depreciation and amortisation (EBITDA) margin, is believed to have dropped 100-120 basis points (bps) year-on-year and 70-100 bps sequentially in the third quarter ended December 31, an analysis by Crisil of 300 companies showed. This excludes companies in financial services and oil and gas.
“This marks the first year-on-year decline in 12 quarters,” Crisil said in the report.
“As many as 27 of 40 sectors tracked by Crisil Research are likely to see their EBIDITA margins shrinking,” Crisil added. However, revenue momentum was sustained, driven by price increases rather than volume growth, it said.
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