CRISIL report: INDIA’S CORPORATE PROFITABILITY DROPS 120 BPS IN Q3

19 January 2022, Mumbai:

India’s corporate profitability dropped 100-120 basis points (bps) year on year and 70-100 bps sequentially in the third quarter of this fiscal, as per a CRISIL survey report. Revenues for RMG Garments and cotton yarn makers increased by 30-35 percent year on year amid higher exports.

In an analysis of 300 companies, excluding those in the financial services, and oil and gas sectors, CRISIL Research notes the a-year decline in 12 quarters. As many as 27 of 40 sectors tracked by the agency are likely to see a contraction in their EBITDA margins.

Margins in consumer discretionary sectors fell by 130-150 bps on-year, and in export-linked by 200-250 bps. For the first nine months this fiscal, EBITDA margin rose by 80-100 bps a year to 22-24 percent, aided by the low base of last year.

Corporate revenue grew by a healthy 16-17 percent to Rs 9.1 lakh crore, driven by surging commodity prices. Volume growth continued to underperform through price hikes provided some offset, added CRISIL

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