RAW MATERIAL COST INFLATION
Caught between costly inputs and cautious buyers, India Inc takes a hit
Companies in India's consumer goods, automobile, and paints sectors are increasing prices to offset rising costs. The West Asia conflict has severely impacted input and logistics expenses across various industries. While some companies have raised prices, they are still absorbing part of these costs to maintain demand. Consumer giants like Hindustan Unilever and Asian Paints report pressure on their margins despite price hikes.
Gold slips as strong US inflation data bolsters dollar, Fed hike expectations
Gold prices edged lower on Thursday as hotter-than-expected US inflation data and hawkish Federal Reserve commentary lifted the dollar to near a one-month high and reinforced
IMFA bets on higher ferro chrome output to offset raw material volatility in second half of FY27
Indian Metals and Ferro Alloys expects higher production in the second half of FY27 to offset pressure from raw-material volatility, with output set to cross 100,000 tonnes in the current quarter, managing director Subhrakant Panda said. The company is targeting 380,000 tonnes of ferro chrome this fiscal, supported by captive chrome ore supplies and additional capacity from its acquired Kalinganagar plant.
MRF shares fall after heavy raw material costs push Q2 profit down. Why Motilal Oswal screams Sell
MRF reported a 27% YoY decline in Q2 consolidated net profit to Rs 387 crore, as a 43% surge in raw material costs offset 17% revenue growth to Rs 8,660 crore. Motilal Oswal maintained its ‘Sell’ rating with a target price of Rs 1.05 lakh, citing margin pressure, rising input costs and demand concerns.
Higher input costs drag MRF Q2 net profit down 23%
Tyre maker MRF Ltd reported a 22.8% decline in net profit for the July-September quarter. Revenue from operations saw a growth of 17.4%, reaching Rs 8,660.19 crore compared to the previous year. However, total expenses also rose significantly, driven by sharp increases in raw material costs. The company announced an interim dividend of Rs 3 per share to its shareholders.
Consumer goods cos turn to cost cutting amid higher input prices to protect demand, revive volume growth
The cost-cutting comes amid an elevated input-price outlook flagged by several companies during recent earnings calls, due to high raw material prices, supply disruptions and freight charges. They are cutting trade investments as well as rationalising vendor networks to negotiate better rates through higher volumes.
Berger Paints Q2 profit lags revenue growth on higher costs
Berger Paints India recorded a consolidated net profit of ₹217.1 crore for the September quarter. Revenue from operations increased by 13.2% to ₹3,200.4 crore during the same period. The profit growth was affected by rising raw material costs and increased advertisement spending, leading to squeezed margins. Consolidated earnings before interest, tax, depreciation and amortisation rose to ₹370.7 crore. The company implemented staggered price hikes to address ongoing raw material inflation.
Diwali shopping gets costlier this year: From milk, ghee, butter to dry fruits, here's why festive buying is burning a hole in your pocket
Milk and ghee prices: Rising costs of key ingredients are affecting both consumers and manufacturers during this Diwali season. Dairy prices have seen significant increases, with major brands raising their rates amid high demand. Additionally, dry fruit prices have surged, reaching record highs over the past year. Corporate gifting has also become more expensive, forcing companies to reduce their gift quantities or opt for smaller packages.
Emami bets on winter demand as inflation keeps a lid on growth
Emami Ltd announced a 36% increase in consolidated revenue for the second quarter, reaching Rs 1,088 crore. Despite rising input costs, the company has seen positive trends in its winter portfolio and rural demand. The net profit declined by 3% due to changes in the effective tax rate. Emami has implemented price hikes to offset raw material inflation while focusing on cost-efficiency.
Berger Paints to hike prices as rising raw material costs squeeze margins
Berger Paints India has reported a rise in profit driven by strong performances in several divisions. The company plans to raise prices and implement cost-efficiency measures in November to safeguard margins. Despite these efforts, escalating raw material costs and forex volatility may pressure near-term margins. Revenue has increased year-on-year, but expenses have surged even more significantly. The industrial segment has shown high volume growth despite declining margins.
New orders & robust demand lift India's October services growth to 4-month high
Growth in India's services sector increased to a four-month high in October due to strong domestic demand and business orders. The HSBC Services Business Activity Index rose to 55.8, reflecting improved business conditions. Conversely, manufacturing activity showed a slight decline, easing to a PMI of 54.7. While input prices continued to rise, the rate of increase was the slowest in over six years.
US Democratic win unlikely to ease firms' cost, tariff woes in near term, executives say
Global businesses expect limited immediate changes following Democrats' takeover of the US Congress, as high energy and raw material costs, inflation and strained consumer spending continue to weigh on operations. While some executives welcomed prospects of political stability, companies remain uncertain about tariffs, AI regulation and trade policies, amid fears of Washington gridlock.
India's services growth accelerates to 55.8 in October, cost pressures ease to six-year low
India's services sector activity expanded at its fastest pace in four months in October, with the HSBC India Services Purchasing Managers' Index (PMI) rising to 55.8 from 55.2 in September, while input cost inflation eased to its lowest level in more than six years, according to data released by S&P Global on Wednesday.
Pizza Hut, KFC India operator's Q2 loss naarrows sharply on strong same-store sales growth
Devyani International, the parent company of KFC and Pizza Hut in India, has recorded a significant reduction in losses during its second quarter. For the third straight quarter, same-store sales for KFC increased by 4.4%. With revenues climbing by 10.4% to 15.19 billion rupees and expenses only rising 8.3%, Chairman Ravi Jaipuria emphasized the ongoing challenges posed by inflation and increasing interest rates.
India extends cotton import duty exemption till December 31
The Indian government has extended the customs duty exemption on cotton imports to December 31. This decision aims to support the textile industry by ensuring adequate raw material availability. The waiver allows greater flexibility for manufacturers to source inputs at reduced costs. Domestic cotton prices have remained firm due to production concerns, prompting this extension. The move is expected to strengthen Indian textiles in both domestic and international markets.
Govt extends customs duty exemption on cotton imports till December 31
The Indian government has announced an extension of the customs duty exemption on cotton imports until December 31, 2026. This move aims to improve the availability of raw materials for the textile and apparel industry. The extension supports Micro, Small and Medium Enterprises (MSMEs) while easing input cost pressures for manufacturers.
Asian Paints’ consolidated profit jumps 7.5% YoY in Q2
Asian Paints reported a 7.5% year-on-year rise in Q2 consolidated profit to Rs 1,067.6 crore, while net sales grew 16.9% to Rs 9,953.9 crore. Higher raw material costs weighed on margins, prompting further staggered price hikes. The company also declared a dividend of Rs 5.75 per share.
Escorts Kubota hikes tractor prices as Middle East war fuels cost pressures
Escorts Kubota plans to implement price hikes on its tractor offerings in November 2026. The company cites inflation and geopolitical uncertainties as significant factors influencing this decision. Price adjustments will vary by model, variant, and geographical regions. These changes come after attempts to optimize costs and maintain operational efficiency. The increases aim to address the elevated expenses from manufacturing and logistics challenges.
Asian Paints says Middle East sales held strong even as 'full impact' of cost inflation was felt in Q2
Asian Paints reported a 29.5% increase in revenue from international operations for Q2 FY27. The company's Middle East operations showed strong performance despite geopolitical challenges affecting business. Net sales at the consolidated level rose by 16.9%, while profit margins experienced a slight decline. Persistent inflation led to staggered price increases in their decorative paints sector. Asian Paints aims to enhance cost-efficiency in response to ongoing market pressures.
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