February 8, 2021 2:38:31 am
Corporate india continues to turn out encouraging numbers for the third quarter earnings season, with very few disappointments. The good news is that most companies have managed to notch up a very good top-line growth, whether through better volumes or price increases or, in some cases, both.
Even manufacturers of capital goods, which were expected to see a decrease in revenues, have surprised street expectations.
With companies continuing to cut costs, margins have expanded — rising by 400 basis points year-on-year — even where sales may not have grown so impressively.
While prices of commodities have gone up, the raw materials bill nonetheless fell 430 bps as a share of sales.
Producers of commodities have reported strong turnarounds posting strong margins during the third quarter of the ongoing financial year.
Fast moving consumer goods (FMCG) companies, too, have posted good numbers with supply chains more or less restored and more retail outlets opening across the country. The stars of the season are undoubtedly the IT companies, whose stellar results are expected to continue into the next season. —FE
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