Companies in the Grip of Rising Input Costs

Oil, gas, automobile and mining sectors experienced the severest impact

- Manjul Paul

Several Indian companies have been raising concerns about escalating input costs, the result of a volatility in global commodity prices triggered by intensifying geopolitical tensions and other uncertainties. Quarterly results for the January-March period show input cost pressures re-emerged as a pain point for India Inc. at the fiscal year's close.

Mint's analysis of 179 BSE-listed companies that have announced fourth-quarter results so far reveal a challenging trend: after a brief respite in the December quarter, raw material expenses as a share of net sales resumed their upward trajectory.

The analysis excludes the banking, financial services, and insurance (BFSI) companies, brokerages, and information technology (IT) services firms, which do not typically record raw material expenses.