Input costs, slow sales crimp India Inc profits
From Biocon, Maruti Suzuki, Nestle, Dr Reddy’s Labs and TVS Motors to a host of smaller companies like Crompton Greaves and Rallis, results for Q1FY22 have barely met the Street’s expectations. However, producers of metals like JSW Steel have seen their profits soar while IT players have done reasonably well. Larsen & Toubro reported a good set of numbers with the engineering behemoth seeing an uptick in ordering prospects.
The Q1FY22 numbers must be read in the context of the very weak base from a year-on-year perspective and a slightly strong base effect on a quarter-on-quarter basis. Net sales have fallen sequentially both for consumer and industrial businesses, not surprising given the local lockdowns across the country during the quarter.
At TVS Motors, revenues declined 26 per cent q-o-q while at Crompton Greaves, they were down 28 per cent as lockdowns impacted revenues. Maruti Suzuki volumes fell 28 per cent…