Higher metal prices to bite corporate margins

Core operating margin is down 90 basis points in the last 2 quarters

Krishna Kant  |  Mumbai & Delhi 

The recent rise in metal prices in the international market could deal a double whammy to corporate India, which is struggling with poor volume and revenue growth after demonetisation and the economic disruption caused by the roll-out of the goods and services tax in July. Metal prices are up nearly 22 per cent on average during the year so far, pushing up manufacturing costs for Indian companies. The raw materials cost as a proportion of net sales is up around 50 basis points in the last two quarters and 230 basis points above the lows of the March 2015 quarter. The ...

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First Published: Thu, September 14 2017. 19:39 IST