The Hindu Business Line : India Inc's manpower costs growing faster, says Assocham

This is because of accretion in the head-count and higher pay packets, says an Assocham Eco Pulse analysis. This analysis is based on the second quarter performance of companies in the current fiscal.

While the net profit of 100 companies, tracked by the analysis, went up by 18 per cent across different sectors, their manpower expenses rose at a greater pace of 22 per cent. The 20 per cent growth in total income of these firms was also lower than the increase in staff expenses. The IT and the ITES sectors witnessed maximum rise in staff expenses, which went up by 36 per cent. At the same time, the topline of the companies in the sector grew by 30.5 per cent only.

However, the pharma sector posted the lowest growth in staff cost at 13 per cent. The sector also posted negative growth in profits. The automobile sector, on the other hand, has posted a staff cost growth of 15 per cent and a profit growth of 31 per cent.

Financial services and banking sector witnessed an increase of 22.4 per cent in staff cost while their profits dropped by two per cent.

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