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'Sign of improved investment cycle gives push to corporate profits'

Low leverage effects, earnings beat, and nascent signs of improving investment cycle are providing confidence in sustainable growth in corporate profits, said ICICI Securities.

Key positives for the current uptrend in the profit cycle are that it is not yet inflated by the effects of 'operating and financial leverage' as capacity utilization is still in the 60-70 per cent range on a trailing 12-month basis and industry credit is just showing signs of revival from a decadal low, it said.