Globally March-2022 ending results will be good but next 3 quarters there will be net profit margin pressure.

Coming to manufacturing companies, previous quarter bought commodities or in early 2022 bought materials will be used to produce goods in the quarter ending March-2022. So for March-2022 there will be just slightly net profit margin pressure.

But next 3 quarters net profit margin will reduce due to commodities and raw materials price hikes. So input material for most of manufacturing sector will be having pain. 

So again it depends whether increasing prices by companies can be absorbed by end user or not matters most to decide which companies will out perform and which companies will be under performing.

Even future FED interest rate hikes will result in additional burden for companies which are sitting on more debt.

As companies needs to pay more interest to banks and financing companies, this will result in reducing net profits.

So while investing consider which companies have more debt and which have less debt also.

Commodities sector companies will be having good results in March-2022 ending quarter and also June-2022 ending quarter.

Manufacturing sector companies may have net profit pressure in June-2022 ending quarter to Dec-2022 ending quarter.


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