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The Economic Times
The Economic Times

FMCG companies face a Q2 margin squeeze: Rising crude oil, palm oil and packaging costs threaten profits despite demand recovery

Rising input costs are likely to put pressure on operating margins for Indian fast-moving consumer goods companies in the September quarter, even as resilient demand and growth in key product categories support revenue expansion.

A sharp rise in crude oil and its derivative products used in packaging, along with a persistent inflationary trend in various commodities and deficit rainfall, has increased cost pressures across companies depending on their product mix, pricing power and cost-saving measures.

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