The high cost of raw materials has been a concern for India inc. for the past many months now but the problem is now turning very severe as it has started to hurt the margins of several companies in the domestic circuit.

It is to be mentioned here that out of the total 250 manufacturing companies that have declared quarterly results so far, they have collectively posted a net profit growth of 22%.

The big names that have declared its results so far are as BHEL, two-wheeler firm Bajaj Auto, Sesa Goa, Coromandel International, TVS Motor, Whirlpool, Vardhman Textile, Escorts, Thermax and UB.

The net profit growth of 22% may look decent enough at the outset but considering the fact that the same set of companies had reported an aggregate 50%-plus growth in earnings for the past three quarters, compared to the corresponding period the previous year.

However, several analysts are supporting the fact that the numbers will moderate from June due to a fading base effect and it does not hence calls for a big concern for now. But there is still no denying to the fact that the high input costs is a big hurdle that hardly has any concrete solution to it.