🧵 1. India Inc's weak sales weigh on profits as companies struggle to increase prices amidst muted demand. Operating profit margins show only modest expansion despite lower input costs. #business
🧵 1. India Inc's weak sales weigh on profits as companies struggle to increase prices amidst muted demand. Operating profit margins show only modest expansion despite lower input costs. #business
🧵 2. Expenses reined in as companies protect their margins. Softening commodity prices help lower costs, but net profits would be flat without a jump in other income.
🧵 3. Net profits up 7.5% YoY, driven by smaller growth in expenses and a steep rise in other income. Interest costs have risen in line with previous quarters.
🧵 4. Including lenders and oil marketing companies, net profits rise 44% YoY. Smaller expense growth and increased other income contribute to the boost, as topline growth remains only 7.5% YoY.
🧵 5. Domestic cyclicals like BFSI and automobile firms drive earnings growth. Analysts lower estimates for consumer-oriented firms due to rising commodity prices and subdued demand.
🧵 Read more at: https://www.financialexpress.com/industry/weak-sales-weigh-on-india-incs-profits/3211460/