Falling costs don’t help profits

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Mumbai | Published: January 27, 2015 3:38:14 AM

The earnings season is off to a dull start but that was to be expected given inflation has eased as have benefits from a depreciating rupee...

The earnings season is off to a dull start but that was to be expected given inflation has eased as have benefits from a depreciating rupee, reports fe Bureau in Mumbai. What’s worrying is that the sharp fall in expenditure hasn’t been enough to boost profits. With Hindustan Unilever turning in weak numbers, it’s clear consumers aren’t exactly brimming with confidence. The same is clear from muted volumes at Bajaj Auto. Going by UltraTech Cement’s numbers, which were weaker than expected, it would appear the construction sector isn’t picking up as expected; results from companies like Prestige Estates, which didn’t launch a single major project in Q3FY15, suggest demand isn’t as strong as it could be. The tech trio of Infosys, TCS and Wipro did reasonably well given the global recovery isn’t gathering pace, though TCS’ numbers were a shade lower than estimates.

inflation, rupee depreciation, Hindustan Unilever, Bajaj Auto, UltraTech Cement, Prestige Estates, Infosys, TCS, Wipro

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