Commodity rally to create new winners and losers in coming quarters

Metal & mining firms to gain; others may see margins contract

The recent surge in metals and energy prices is expected to lead to record profits for metal, mining, and oil & gas companies in the coming quarters but could hurt the margins and profitability of the rest of India Inc. The biggest hit will be felt by companies in sectors such as automobile, auto ancillary, consumer durables and non-durables, capital goods, and engineering. 

The net impact on India Inc’s profits would depend on the interplay between the gains of producer industries and user industries. In the second quarter, metal and mining companies such as Tata Steel, JSW Steel, Hindalco, Hindustan Zinc,