Thread by @ValueIn84502221

These 5 Sectors Profitability Impacts Negatively due to Higher Crude Oil Prices. 👇
Thread🧵 1/6

#StockMarkets #stockmarketcrash #StocksToBuy

Tyre : Crude oil derivatives such as carbon black , synthetic rubber etc forms nearly 30-40 % cost of producing a Tyre. Hence higher input cost due to high oil price impact Tyre companies profits and profits margin. 2/6

Paint: Higher crude price is negative for paint companies’ as it hurts their profit margins. Crude oil and its derivatives are key raw material and account 50% of the paint companies total expense. 3/6

Cement: Higher crude prices causes rice in petcoke prices and freight costs due to this profit margins impact. Cement companies power and fuel expenses form approx. 25-30 % of operating cost. 4/6

Aviation: Jet fuel or aviation turbine fuel (ATF) forms a huge part of operating costs of airlines. Higher crude price has negative impact on aviation companies’ profitability. 5/6

FMCG and Packaging Companies : higher crude price hurt margins of FMCG companies as several raw material items and packaging cost increase
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For education purpose only.