Lower commodity prices prop up India Inc

Cumulative savings over five-year downcycle may be as high as Rs 15.2 lakh crore

Lower commodity and energy prices translated into cumulative savings for listed companies of up to Rs 15.2 lakh crore ($233 billion) over the past five years. The biggest gains accrued to energy companies ($84 billion), automobile and consumer durables makers ($25 billion) and metal and mining companies ($65 billion). The analysis is based on the quarterly results of 1,924 companies for the past five years.
 
Expenses on raw materials and energy were the equivalent of 46 per cent of net sales of all listed companies during the April-June 2011 quarter. The ratio, which stood at 42.5 per cent in