Thought
for the day
“Legend remains victorious in spite of history.”
-
Sarah Bernhardt (French, 1845-1923)
Word
of the day
Chattel
(n)
A movable article of personal property.
(Source: Dictionary.com)
Shri
Nārada Uvāca
Wonder why have we not heard the name of Guru Ji Shibu
Soren in connection with Coalgate?
Reality check @Nifty 6200 - III
Corporate profitability
The corporate profitability in India is at decade low. As per a
recent report by brokerage firm Jefferies “return on equity (RoE) for Nifty
(ex. financials) has declined from its peak of 26% in FY05 to near its decade
lows at 14.8% in FY13. The decline has been led by a fall in asset utilization,
lower margins and higher tax rate, in that order. While the decline has been
mostly due to a cyclical downturn in economy, some sectors have seen structural
decline on various parameters.”
The report highlights that
Asset utilization for most sectors, except pharma and energy (due to crude
price), has declined in recent years. Margins for most sectors, except IT,
pharma and staples, have also declined. Moreover, RoEs for four of the ten
sectors are currently below the cost of equity.
…to continue tomorrow
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