Costs are up, profit margins down, says IIM-A survey of 1,600 companies

Profit mrgins % responses

By A Representative
The latest Business Inflation Expectations Survey (BIES), released by the Indian Institute of Management-Ahmedabad (IIM-A) has revealed that 54% of responses obtained from 1,600 companies say that in May 2019 there was increase in costs in May 2019 up by 3% from 50% reported in April 2019 during the last one year.
“The proportion of firms perceiving significant cost increase (more than 6%) in May 2019 has marginally increased to 26% as compared to 25% in April 2019”, the BIES report adds.
The report further says, “In May 2019, over 60% of the firms in the sample reported that sales are ‘somewhat or much less than normal’, a proportion similar during the January-May 2019 period.”
At the same time, the report states, “The proportion of firms in the sample reporting ‘normal or greater than normal’ profit margins has declined to 30% in May 2019 from 36% in April 2019.” It adds, “Overall, the profit margin scenario has remained depressed and unchanged in May 2019.”

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