Illustration: Binay Sinha

Corporate margins and profits in India remain vulnerable to changes in crude oil prices in the international market. Historical quarterly data from listed companies (excluding banks, finance and insurance, oil and gas, and power sectors) indicate an adverse correlation between corporate margins and crude oil prices.

An increase in companies’ core operating margins was observed in 2020-21 (FY21) following a sharp decline in crude  oil prices in the first half of calendar year 2020 after the outbreak of the pandemic.

For instance, operating margins reached a record high of 20.3 per cent of net sales in the October-December quarter of

First Published: Apr 12 2024 | 12:28 AM IST

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