The aggregate expenditure of the 485 major companies on P&F increased by 4.8% to Rs 12,388 crore during April-September 2005 from of Rs 11,823 crore during April-September 2004. On the other hand, the total expenditure of the sample companies increased by 9.97% to Rs 73,325 crore during April-September 2005 from the level of Rs 66,680 crore during April-September 2004. Though P&F expenditure may have gone up marginally on the back of fuel price hike, the share of P&F cost in the total expenditure decreased from 17.73% to 16.89% during the study period.
This, according to analysts, shows the efficiency of corporates that even when the fuel prices have been increased, the P&F cost has come down. The decreasing share of P&F in total expenditure has also helped in increasing the profit margins and has encouraged cost control measures, they added.