December 19, 2020
Only companies with high profit margins made the cut
The post-pandemic period saw many companies take a big hit on revenue and profitability. While many have recovered since, at a faster pace than expected, it’s not business as usual for all
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Continuing with the Do-It-Yourself (DIY) series, this week we select companies from the S&P BSE 500 Index that have registered consistently high profit margins.
Using the Capitaline database, we have shortlisted companies that have maintained operating profit margins (EBIT or earnings before interest and tax margins) and net profit margins of at least 20 per cent and 15 per cent, respectively, for five years until March 2020. Also, given that profit margins can vary across sectors, we have picked companies that are among those with the highest margins within an industry. Additionally, these are companies that have also grown their sales revenues at a reasonable rate during this period. While margins are important, s