The Q3 business update released by the company says that the industry level consumption in fashion remained muted. But Nykaa’s fashion vertical saw strong growth
On the mend
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India Inc has delivered blockbuster profits in Q3, but it needs to be seen if they sustain
India Inc’s Q3 FY21 report card brings welcome evidence that the profit rebound of the preceding quarter wasn’t just a flash-in-the-pan. An analysis by this paper shows that for 1,772 companies that have declared numbers, net profits (adjusted for exceptional items) jumped 52 per cent year-on-year on the back of operating profit margin expansion (17-21 per cent) though revenues barely changed. Soft material prices and wage cost savings seem to have aided profitability; rising input costs, though, may begin to pinch from the current quarter. Overall profit growth was striking with dramatic turnarounds from losses to profits reported by leading public sector banks, and steel and industrial companies, too. Muted bad loan recognition played a role in standout bank numbers while the upbeat commodity cycle propped up profits for commodity players. On these scores, the sustainab