Rocketing raw material costs hit India Inc margins in September quarter

Firms resort to other expenditure cuts to offset pressure on operating profit margins

A day after the second-quarter results, Sanjiv Mehta, chairman and managing director of Hindustan Unilever (HUL), India’s largest FMCG company, called upon the government to monitor inflation.
 
Mehta has his reasons. Crude oil (according to the WTI index ) is at levels last seen in 2014. Agricultural commodities and metals have seen a surge in prices which is hurting corporate sector profits. Companies across segments such as in FMCG, steel, cement and paints are seeing a margin contraction, despite price hikes and cost cutting measures.
 
An analysis of September-quarter (Q2) results declared so far shows that 14 of