Companies have cut costs and controlled this to a great extent. At the same time, the IT sector is getting the benefit of increasing digitalization.
In the third quarter of the current financial year, the performance of corporate companies of the country is looking better. The good thing is that if a few companies are left out, most of the other companies have maintained their good revenue.
Their performance has increased on both the pricing and volume front. Even capital goods companies have performed well. Earlier it seemed that the capital goods companies would not perform as well but these companies performed well.
Cost reduced, margin increased
After continuous cost reduction by the companies, their margin has increased by four per cent compared to the previous year. Sales may not have increased this much, but this increase in margins has been very effective.
According to the reports, even though the price of the commodity has increased, the raw material bill has decreased by 430 basis points. Commodity producer companies have earned very good margins, so their profits have increased substantially. These companies have benefited greatly from supply chain restoration. Now more outlets are opening up retail, which has increased their sales.
IT companies perform best
The best performing IT companies say. These companies are expected to perform well in the next season. Work from home during the Corona transition and the rapid pace of digitization of companies has greatly increased the market for IT companies.
In the third quarter IT companies have received very good deals. This includes Digital Deal, Vendor Consolidation Deal, Core Transformation Deal and Integrated Mega Deal. There are many more deals in the pipeline of these companies. The orderbook of IT companies has strengthened. Further, IT companies will also benefit.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.