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Ukraine crisis: India Inc faces dip in margins as crude oil prices spike

The numbers suggest an across-the-board impact, including banks and financials, and oil and gas companies.

oil, crude
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Analysts attribute this to a jump in revenues and the profitability of metals and mining companies despite a steady rise in energy costs

Krishna Kant Mumbai
The recent spike in crude oil prices will lead to a sharp fall in India Inc’s margins and profitability in the forthcoming quarter.

Historically there is negative correlation between international crude oil prices and the earnings before interest, tax, depreciation, and amortisation, or the operating margins of listed companies.

The biggest impact is expected to be felt by manufacturing companies and those that rely on petroleum-based raw materials.

The numbers suggest an across-the-board impact, including banks and financials, and oil and gas companies.

Banks and non-bank lenders, on the other hand, take a hit on margins as higher crude oil prices lead to a

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First Published: Feb 25 2022 | 6:10 AM IST

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