Export duty on steel and petro products to hit corporate earnings in FY23

Metals & oil firms together saw profit of Rs 3.05 trn in FY22

The recently announced special tax on the export of steel, iron ore and petroleum products, and a windfall profit tax on crude oil producers are likely to hit the overall corporate earnings during the current financial year. Mining & metals and crude oil producers —such as Tata Steel, JSW Steel, Vedanta, Hindalco, Oil & Natural Corporation (ONGC), and Reliance Industries — led corporate earnings’ growth in FY22 and any dip in their earnings due to regulatory changes is likely to pull down profits for FY23.

Together the listed companies from these two sectors reported a record net profit of Rs 3.05