Skip to main content

IIM-A survey: Profit margins subdued, sales fail to recover, cost pressure builds up

By A Representative
The latest Business Inflation Expectations Survey (BIES), carried by the Indian Institute of Management-Ahmedabad (IIM-A), has suggested that cost perceptions data show some early signs of cost pressures building up, with nearly 50% of the firms believe that the current cost increase is 3.1% and above, as compared to the same time last year. Around 1/4th of the firms perceive the current cost increase in over 6%.
As for the sales perception, the data do not show clear signs of recovery, the survey says, pointing out, in December 2019, around 72% of the firms in the sample reported that sales are ‘somewhat or much less than normal’ as against 68% reporting in November 2019. This proportion has remained around 70% since June 2019, it adds.
Referring to profit margins, the survey says, starting from June 2019, the proportion of firms in the sample reporting ‘much less than normal’ profit margins has remained above or around 50%, adding, overall, the profit margin scenario has remained subdued for over six months.
The survey, begun by Prof Abhiman Das in May 2017, claims to provide “ways to examine the amount of slack in the economy by polling a panel of business leaders”, adding, the monthly survey “asks questions about year-ahead cost expectations and the factors influencing price changes, such as profit, sales levels, etc.”
The questionnaire of BIES is finalized based on the feedback received from the industry, academicians and policy makers, with companies being selected primarily from the manufacturing sector. The results are based on the responses of over 1200 companies.
The survey report says, “One year ahead business inflation expectation, as estimated from the mean of individual probability distribution of unit cost increase, has remained unchanged at around 3.5% during November and December 2019.”
It adds, “Uncertainty of business inflation expectation, as captured by the square root of the average variance of the individual probability distribution of unit cost increase, has declined sharply to 2.00% in December 2019 from 2.39% reported in November 2019.”

Comments

TRENDING

Wave of disappearances sparks human rights fears for activists in Delhi

By Harsh Thakor*  A philosophy student from Zakir Hussain College, Delhi University, and an activist associated with Nazariya magazine, Rudra, has been reported missing since the morning of July 19, 2025. This disappearance adds to a growing concern among human rights advocates regarding the escalating number of detentions and disappearances of activists in Delhi.

How community leaders overcome obstacles to protect forests and pastures in remote villages

By Bharat Dogra  Dheera Ram Kapaya grew up in such poverty that, unable to attend school himself, he would carry another boy’s heavy school bag for five kilometers just to get a scoop of daliya (porridge). When he was finally able to attend school, he had to leave after class five to join other adolescent workers. However, as soon as opportunities arose, he involved himself in community efforts—promoting forest protection, adult literacy, and other constructive initiatives. His hidden talent for writing emerged during this time, and he became known for the songs and street play scripts he created to promote forest conservation, discourage child marriages, and support other social reforms.

‘Act of war on agriculture’: Aruna Rodrigues slams GM crop expansion and regulatory apathy

By Rosamma Thomas*  Expressing appreciation to the Union Agriculture Minister for inviting suggestions from farmers and concerned citizens on the sharp decline in cotton crop productivity, Aruna Rodrigues—lead petitioner in the Supreme Court case ongoing since 2005 that seeks a moratorium on genetically modified (GM) crops—wrote to Union Minister Shivraj Singh Chouhan on July 14, 2025, stating that conflicts of interest have infiltrated India’s regulatory system like a spreading cancer, including within the Indian Council for Agricultural Research (ICAR).

The GMO illusion: Three decades of hype, harm, and false hope

By Sridhar Radhakrishnan  Three decades of hype, billions of dollars spent, and still no miracle crop. It's time to abandon the GMO biotech fairy tale and return to the soil, the seed, and the farmer. “Trust us,” they said. “GMOs will feed the world.” Picture a world where there is plenty of food, no hunger, fields grow without chemical pesticides, children are saved from malnutrition, and people live healthily.

Sandra Gonzalez Sanabria: An inspiring life from Colombia’s Amazonian valley

By Vidya Bhushan Rawat*  In the village of Héctor Ramírez, known as Agua Bonita, in La Montañita, Caquetá, Colombia, a vision of peace and renewal is unfolding. In the pre-2016 period, this would have been nearly impossible for outsiders to visit, as it was the epicenter of violent resistance against state oppression. However, after the Peace Accord was signed between the Colombian government and former revolutionaries—marking the end of a 70-year insurgency that claimed over 400,000 lives until 2025, including civilians, rebel fighters, and security personnel—things began to change. Visiting Agua Bonita during the Global Land Forum in Bogotá revealed a village of hope and resilience. Former FARC revolutionaries have settled here and transformed the village into a center of peace and aspiration.

Overriding India's constitutional sovereignty? Citizens urge PM to reject WHO IHR amendments

By A Representative   A group of concerned Indian citizens, including medical professionals and activists, has sent an urgent appeal to Prime Minister Narendra Modi, urging him to reject proposed amendments to the International Health Regulations (IHR) before the ratification deadline of July 19, 2025. 

Indigenous Karen activist calls for global solidarity amid continued struggles in Burma

By A Representative   At the International Festival for People’s Rights and Struggles (IFPRS), Naw Paw Pree, an Indigenous Karen activist from the Karen Human Rights Group (KHRG), shared her experiences of oppression, resilience, and hope. Organized with the support of the International Indigenous Peoples Movement for Self-Determination and Liberation (IPMSDL), the event brought together Indigenous and marginalized communities from across the globe, offering a rare safe space for shared learning, solidarity, and expression.

Activists allege abduction and torture by Delhi Police Special Cell in missing person probe

By A Representative   A press statement released today by the Campaign Against State Repression (CASR) alleges that several student and social activists have been abducted, illegally detained, and subjected to torture by the Delhi Police Special Cell. The CASR claims these actions are linked to an investigation into the disappearance of Vallika Varshri, an editorial team member of 'Nazariya' magazine.

India’s zero-emission, eco-friendly energy strategies have a long way to go, despite impressive progress

By N.S. Venkataraman*   The recent report released by OPEC’s World Oil Outlook 2025 has predicted that by the year 2050, crude oil would replace coal as India’s key energy source. Clearly, OPEC expects that India’s dependence on fossil fuels for energy will continue to remain high in one form or another.