A deep dive into the corporate earnings does validate that the sales growth deceleration was limited to a handful of manufacturing sectors in Q2 FY25 such as – Construction material (includes cement), Metals & metal products, Transport equipment, Petroleum products and Mining.
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A deep dive into the corporate earnings does validate that the sales growth deceleration was limited to a handful of manufacturing sectors in Q2 FY25 such as – Construction material (includes cement), Metals & metal products, Transport equipment, Petroleum products and Mining. Together these sectors account for 47% share in total sales of the non-financial sector. An outsized impact of ‘Above normal’ monsoon over Aug-Sep-24 at 14% higher than LPA appears to be at play. On the other hand, operating margins (OPM) registered a more pervasive* decline in Q2 FY25, attributable to higher cost of raw materials and purchase of finished goods (in Q1 and Q2 both), persistent rise in salaries and wages and a weak urban demand - cumulatively adversely impacting the margins.