If you are interested in investing in equities or mutual funds, this is a piece of information of the markets that you can never lose sight of. One single sector alone accounted for EBIDTA of all the 10 sectors that constitute the popular index of Indian stock markets.
Why is EBIDTA important?
EBITDA is a primary indicator that investors and analysts keep track of. It is a measure of the earnings of any firm from its business before paying taxes, depreciation and amortization.
This parameter indicates the value of the cash flow of a business that is generated by its operations since it is calculated by factoring in expenses important to keep its operations running.
Financial services
In the quarter January-March 2024, the cumulative EBIDTA of all the 50 companies in Nifty 50 stood at Rs 5,98,374 crore (Rs 5.98 lakh). The financial services sector accounted for Rs 292,099 crore or 48.81%, recent data revealed by NSE indicated.
Energy
No other sector, except energy, came anywhere close to even the Rs 1 lakh crore mark. Energy sector companies cumulatively accounted for EBIDTA of Rs 97,775 crore which was 16% of the total EBIDTA pool.
Information technology
Though information technology companies are going through a rough patch for some time, thanks to the economic slowdown in the major developed markets, they comprised 7.5% of the EBIDTA and clocked Rs 44,932 crore.
Consumer discretionary
The consumer discretionary sector contributed 6.65% and came fourth on the pecking order.
Materials
The EBIDTA of the materials sector came to Rs 36,888 crore and comprised 6.16%.
Utilities
Utilities clocked Rs 25,702 crore which was 4.29% of the total pool.
Communication services
The communication services sector recorded an EBIDTA of Rs 20,512 crore which stood at 3.42% of the total pie.
Industrials
Industrials accounted for 3%, while consumer staples accounted for Rs 13,915 crore or 2.32%.
Healthcare
The lowest contribution to the EBIDTA pool came from healthcare firms. They accounted for Rs 13,915 crore or 1.46%.
The EBIDTA growth rate story
In terms of EBIDTA growth rates too, the financial services sector trumped all others. In Q4 of the last financial year, it grew at the rate of 44.6%.
The slowest pace of growth was clocked by the materials sector – 0.3%.
The rates of growth of the other sectors were consumer discretionary 28.3%, healthcare 20.4%, energy 14.6%, IT 6.8%, utilities 6.4%, industrials 6.3%, communication services 4.7% and consumer staples 3.1%.
Nifty 50 cumulative EBIDTA grew at 25%, revealed a recent publication by the NSE.
Nifty 50 – The index is made of 50 companies representing 10 diversified sectors. This sector accounted for the cumulative EBIDTA for all the companies in the last quarter of FY24. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
