Q2: India Inc gets margin boost on falling input cost, lower expenses

Firms' operating margins soared to record high of 28.6 per cent

Aggressive cost-cutting and sharp declines in commodity and energy prices helped India Inc post record operating margins in the second quarter of financial year 2020-21 (Q2FY21), despite falling sales and revenues, because of the pandemic.
 

The combined operating expenses (excluding interest, depreciation and taxes) of 490 listed companies in Business Standard’s sample were down 12.4 per cent year-on-year (YoY) in the quarter, as against a 5.6 per cent YoY decline in net sales, and 2.9 per cent YoY decline in revenues.
 

This resulted in a jump of 780 basis points (bps) in Ebitda (earnings before interest, taxes, depreciation, and amortisation)