Waiting To Explode

Swelling exceptional items are a clear and present danger to investor wealth  

Illustration: Kishore Das

To be crude, the commodity downcycle is far from over. Similar is the case for industrial metals, who have been hit by lower demand. In such a scenario, the stress has been manifesting itself in the form of exceptional items. For the nine months ended December 2015, write-offs stood at Rs.16,854 crore. Already higher than the Rs.13,063 crore (2.3% of operating profit) written-off in FY14, the number is expected to swell once the March quarter numbers are out.