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Business Standard
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Slowing profits

Inflation is affecting demand and margins

GDP Growth
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GDP Growth

Business Standard Editorial Comment
The January-March 2022 quarter results of 2,939 listed companies (minimum net sales of Rs 1 crore) indicate economic growth continues, but there are headwinds of high inflation and weak consumption demand. Ignoring volatile segments like oil and gas, refining, banking and non-banking financial companies, India Inc has seen a 19 per cent rise in net sales and 40 per cent increase in “other income”. This has led to a 16 per cent rise in operating profits (EBITDA) and 24 per cent rise in profit after tax (PAT). Expenses are up 19 per cent and operating margins are down. In the