Although earnings growth in the June quarter was less dark than expected, they were stronger than expected. Consensus earnings for the Nifty for fiscal year 22 have fallen slightly to less than 3 percent, with metal producers and big banks looking to upgrade and automakers and insurance companies looking to downgrade, he said. TI players are expected to continue their strong performance.
An increase in the price of inputs, reflecting a decrease in gross margins, could continue to put pressure on profitability until demand can increase as companies can increase costs.
So far, the cement and chemicals sectors are among the few that are reporting better margins. Most companies have cut costs in the last year, but some of them are beginning to reverse; Spending on promotions and advertisements is likely to increase this holiday season.
However, the management comment is quite positive and the CEO expects consumer and business activity to pick up as the vaccination campaign progresses and the holiday season begins.
Hiring monitoring agencies say companies are increasing their workforce, although the majority of hiring, across all sectors, is for IT professionals. As the business builds up in the coming months, salary costs for companies are expected to rise.