Increasing interest costs

Corporate results indicate improving demand

The Q3 FY23 (October-December 2022-23) results of 3,152 listed companies with a minimum revenue of Rs 1 crore indicate that rising interest rates are hurting margins and growth momentum is slowing. But there are signs of improved private consumption and enhanced demand for bank credit. The industrial metals cycle was down, while oil and gas refiners remained under pressure. Net sales were up year on year (YoY) 17.4 per cent for the entire sample, and earnings before interest, taxes, depreciation, and amortisation (Ebitda) increased 10.6 per cent. However, the operating margin fell to 22.7 per cent from 24.1 per cent