359 cos ex oil & financials & trading
	08-Mar	07-Mar	% Chg
	Rs cr	Rs cr
Net Sales	143,305	119,337	20%
Other Income	3,493	2,836	23%
Extraordinary income	735	521	41%
Materials	73,038	62,804	16%
Salaries & Wages	11,368	11,338	0%
Interest Exp	2,062	1,368	51%
Dep	4,973	4,112	21%
Tax	4,517	4,077	11%
PBDIT	30,724	25,638	20%
PBT	23,689	20,159	18%
PAT	18,630	15,739	18%
APAT	15,137	12,903	17%
Source: CNBC TV18 Analysis, CMIE

The devil clearly lies in the detail. For starters look at the interest costs – up 51% y-o-y in the above table. Financing seriously has moved up. Also, as interest rates don’t seem likely to cool from these levels, India Inc. will have to live in increased costs world. Considering, RBIs latest stand in the Credit & Monetary policy, borrowing certainly is most likely to get tougher. The 25 bps (100bps = 1%) CRR hike will make cash expensive and banks may raise rates. The CRR hike will cut M3 (money supply) by Rs 9,000 cr odd. A no growth in salaries and wages indicates concerns over cutting costs. A 20% increase in depreciation and a higher interest cost seem to suggest that capex plans are on track.

Having said that, earnings break up of large companies and the rest gives a better picture. Things don’t seem to be as hunky dory. Take a look at the table where aggregates of large cap companies are compared with the aggregates of small and mid cap companies.