For firms, royalty payments have grown faster than sales since pandemic

Listed companies have seen a sharper rise

Companies are paying more royalties in relation to sales than they did before the pandemic.

Firms’ expenses under royalties, technical know-how, and similar fees increased at a compound annual growth rate of 15.5 per cent between 2018-19 (FY19) and 2022-23. There has been a 9.9 per cent increase in sales.

The data for a large sample of companies is available till FY23. Many are yet to provide financial details for FY24. The gap was narrower over a similar period ended FY19.

Royalty-related expenses had grown 10 per cent over a similar period ended FY19 while sales grew