Rising input costs squeezes Pricol Q2 margins
Executive Brief • Key Highlights
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- ✓Rising input costs are squeezing margins for Coimbatore-based Pricol Ltd.
- ✓CEO PM Ganesh said, “We continue to face very strong headwinds, primarily because of the rising input cost.” While revenue grew 35 per cent, the company now faces higher prices for memory chips and PCBs, which may impact future profits.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Business Line
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
Rising input costs, driven by rupee depreciation, escalating printed circuit board (PCB) prices and a sharp increase in memory chip costs amid the artificial intelligence (AI) boom, are putting pressure on the margins of Coimbatore-based automotive components manufacturer Pricol Ltd.
The company expects these cost headwinds to persist for a few more quarters, with its efforts to pass on the additional burden to customers still under discussion.
PM Ganesh, CEO and Executive Director of Pricol, told analysts that in Q2, the company crossed over ₹1,000 crores in the quarter.’ “We continue to face very strong headwinds, primarily because of the rising input cost. This has been the condition even during Q1 and it is continuing in Q2 as well.”
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