The fall in interest payments and low prices of raw materials at the beginning of the year help boost the earnings of India's manufacturers, reports Livemint.com
Livemints notes that net profits for the fiscal year of 2,046 manufacturing firms gained 23%, a surge back from the previous year. During the first half of the year, when demand was low, manufacturers cut salaries, sales, and administrative expenses, adds Livemint.
But as the year enters the second half, prices are rising and contracts are getting repriced, adding some amount of margin pressure to the companies, says Livemint, citing Mohan K.R. Swamy, head of equity research at the Royal Bank of Scotland’s securities unit.