Inflation bites: High commodity prices hit India Inc's profits, margins

The adverse impact of inflation and higher commodity prices is visible in the overall corporate results for Q1FY22

After the hit of the pandemic, India Inc is now worried about the adverse impact of inflation and higher commodity prices on their revenues and margins. The inflation scare is the strongest among manufacturers of consumer goods such as automobiles, consumer durables, and fast-moving consumer goods (FMCG).

Companies across sectors fear they will not be able to pass on the hike in input costs to their consumers due to weak demand, which, in turn, would lead to a hit on margins and profitability in the forthcoming quarters.

“We are keeping a close watch. One needs to walk a tightrope,” said