The biggest mistake made in currency cycles is to confuse revenue gain with pure earnings gain. A company may report stronger rupee revenue because export invoices translate at a higher rate. But if it imports key raw materials, solvents, specialty intermediates, or packaging inputs, part of that gain leaks out through the cost of goods sold. If it carries foreign-currency debt, that can also become costlier. And if it has subsidiaries with their own local operating expenses abroad, the consolidated outcome can be more complicated than the export percentage suggests. The core idea remains positive for any sector, but the earnings pass-through varies materially by business model. That is why it would be good to be selective.
