Increasing costs

Interest cost is affecting profitability

An examination of the Q4FY23 (January-March 2023) results of some 500 listed companies indicates a slowdown in profitability, though revenues have grown and there are early signs of consumption picking up. Costs have gone up due to inflation. The rising cost of financing and increasing wage bills are all hitting margins. For this overall sample, operating revenues have grown 14 per cent year on year. But operating expenses have also grown 13 per cent while employee-related costs are up 23 per cent and interest costs have risen by a whopping 37 per cent. Operating profits are up 16 per cent,