Skip to main content

For 46% entrepreneurs profit margins are much less than normal, as sales levels go down

Profit margins
By A Representative
The Indian Institute of Management-Ahmedabad’s (IIM-A’s) latest Business Inflation Expectations Survey, based on responses of over 1600 companies, has found that one year ahead business inflation expectation, “as estimated from the mean of individual probability distribution of unit cost increase, in November 2018 has increased to 3.86% from 3.66% observed in October 2018.”
“Uncertainty of business inflation expectation in November 2018, as captured by the square root of the average variance of the individual probability distribution of unit cost increase, has increased further to 2.24%”, the IIM-A report states.
Regarding cost perceptions, the report says, “Around 60% of the firms in November 2018 reported that increase in costs has been more than 3% (marginally up from around 58% in October 2018) during the last one year. The proportion of firms perceiving significant cost increase has remained same at 34% in November 2018.”
Sales levels
Then, the report says, “Nearly 3/5th of the firms in the sample reported that sales are ‘somewhat or much less than normal’ in November 2018. This proportion has increased during the last two months”, adding, “Responses of 46% of the firms in the sample in November 2018 indicate ‘much less than normal’ profit margins. Proportion of firms reporting ‘normal or above normal’ profit has remained unchanged at around 30% for the last 5 months.”

Comments

TRENDING

Modi’s Israel visit strengthened Pakistan’s hand in US–Iran truce: Ex-Indian diplomat

By Jag Jivan   M. K. Bhadrakumar , a career diplomat with three decades of service in postings across the former Soviet Union, Pakistan, Iran, Afghanistan, South Korea, Sri Lanka, Germany, and Turkey, has warned that the current truce in the US–Iran war is “fragile and ridden with contradictions.” Writing in his blog India Punchline , Bhadrakumar argues that while Pakistan has emerged as a surprising broker of dialogue, the durability of the ceasefire remains uncertain.

Why Indo-Pak relations have been on 'knife’s edge' , hostilities may remain for long

By Utkarsh Bajpai*  The past few decades have seen strides being made in all aspects of life – from sticks and stones to weaponry. The extreme case of this phenomenon has been nuclear weapons. The menace caused by nuclear weapons in the past is unforgettable. Images of Hiroshima and Nagasaki from 1945 come to mind, after the United States dropped two atomic bombs on the cities.

Manufacturing, services: India's low-skill, middle-skill labour remains underemployed

By Francis Kuriakose* The Indian economy was in a state of deceleration well before Covid-19 made its impact in early 2020. This can be inferred from the declining trends of four important macroeconomic variables that indicate the health of the economy in the last quarter of 2019.

Food security? Gujarat govt puts more than 5 lakh ration cards in the 'silent' category

By Pankti Jog* A new statistical report uploaded by the Gujarat government on the national food security portal shows that ensuring food security for the marginalized community is still not a priority of the state. The statistical report, uploaded on December 24, highlights many weaknesses in implementing the National Food Security Act (NFSA) in state.

Incarceration of Prof Saibaba 'revives' the question: What is crime, who is criminal?

By Kunal Pant* In 2016, a Supreme Court Judge asked the state of Maharashtra, “Do you want to extract a pound of flesh?” The statement was directed against the state for contesting the bail plea of Delhi University Professor GN Saibaba. Saibaba was arrested in 2014, a justification for which was to prevent him from committing what the police called “anti-national activities.”

Civil society flags widespread violations of land acquisition Act before Parliamentary panel

By Jag Jivan   Civil society organisations and stakeholders from across India have presented stark evidence before the Parliamentary Standing Committee on Rural Development and Panchayati Raj , alleging systemic violations of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement (RFCTLARR) Act, 2013 , particularly in Scheduled Areas and tribal regions.

The soundtrack of resistance: How 'Sada Sada Ya Nabi' is fueling the Iran war

​ By Syed Ali Mujtaba*  ​The Persian track “ Sada Sada Ya Nabi ye ” by Hossein Sotoodeh has taken the world by storm. This viral media has cut across linguistic barriers to achieve cult status, reaching over 10 million views. The electrifying music and passionate rendition by the Iranian singer have resonated across the globe, particularly as the high-intensity military conflict involving Iran entered its second month in March 2026.

Beneath the stone: Revisiting the New Jersey mandir controversy

By Rajiv Shah  A recent report published in the British media outlet The Guardian , titled “Workers carved the largest modern Hindu temple in the west. Now, some have incurable lung disease,” took me back to my visits to the New Jersey mandir —first in 2022, when it was still under construction, though parts of it were open to visitors, and again in 2024, after its completion.

Protesters in UK cities voice concerns over alleged developments in Bastar region

By A Representative   Demonstrations were held across several cities in the United Kingdom on March 28, as groups and activists gathered to protest what they described as state actions in India under the reported “Operation Kagar.”