Increased costs 'adversely' affect Indian business profit margin: IIM-A survey

Costs per unit compare with this time last year: % responses

By A Representative
The Indian Institute of Management-Ahmedabad’s Business Inflation Expectations Survey (BIES), which seeks to examine the amount of slack in the economy by polling a panel of business leaders about their inflation expectations in the short and medium-term, has said that even as one year ahead business inflation expectations in November 2020 have "increased sharply" by 50 basis points to 4.28% from 3.78% reported in October 2020, “The cost perceptions data indicates a further hardening of cost pressures.”
The the latest round, carried out in November 2020, was the 43rd round of the BIES survey. The results are based on the responses of around 1,100 companies.

The BIES report said, “Around one third of the firms perceive significant (over 6%) cost increase. About 17% of the firms perceive that costs have increased very significantly (over 10%)”, adding, “Over 58% of the firms find that the current cost increase is ‘3.1% and above’ as compared to the same time last year – further up from 55% reported in October 2020. This is primarily driven by the firms indicating very significant cost increase (over 10%).”

Profit margins: % response

The report further said, “Expectations on sales have improved – reflecting improved demand conditions. For the first time in the year 2020, about one third of the firms report that sales are normal or above normal.” However, it added, “Firms’ expectations of ‘about normal’ or greater profit margin has not improved. Over 37% of the firms in November 2020 report that sales are ‘much less than normal’ as against 46% firms reporting in October 2020.”
Noting that “overall, while sales have further improved, the profit margin is adversely affected by increased cost concerns” the report said, “Over 47% of firms in the sample in November 2020 report ‘much less than normal’ profit – up from 40% reported in October 2020. Firms’ expectations of ‘about normal’ or greater profit margin has not improved in this round of the survey.”

Comments

When democracy becomes a performance: The Tibetan exile experience

By Tseten Lhundup* I was born in Bylakuppe, one of the largest Tibetan settlements in southern India. From childhood, I grew up in simple barracks, along muddy roads, and in fields with limited resources. Over the years, I have watched our democratic system slowly erode. Observing the recent budget session of the 17th Tibetan Parliament-in-Exile, these “democratic procedures” appear grand and orderly on the surface, yet in reality they amount to little more than empty formalities. The parliamentarians seem largely disconnected from the everyday struggles faced by ordinary exiled Tibetans like us.

Study links sanctions to 500,000 deaths annually leading to rise in global backlash

By Bharat Dogra International opinion is increasingly turning against the expanding burden of sanctions imposed on a growing number of countries. These measures are contributing to humanitarian crises, intensifying domestic discord, and heightening international tensions, thereby increasing the risks of conflicts and wars.

Beyond the island: Top mythologist reorients the geography of the Ramayana

By Jag Jivan In a compelling new analysis that challenges conventional geographical assumptions about the ancient epic, writer and mythologist Devdutt Pattanaik has traced the roots of the Ramayana to the forests and river systems of Central and Eastern India, rather than the peninsular south or the modern island nation of Sri Lanka.

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.

Alarming decline in India's repair culture threatens circular economy goals: Study

By Jag Jivan A comprehensive new study by environmental research and advocacy organisation Toxics Link has painted a worrying picture of India's fading repair culture, warning that the trend towards replacement over repair is accelerating the country's already critical e-waste crisis.

Dr. Ram Bux Singh: Biogas pioneer’s legacy gains urgency amid energy crisis

By A Representative In an era defined by a global energy crisis and a desperate search for sustainable solutions, the visionary work of an Indian scientist from the mid-20th century is finding renewed, urgent relevance. Dr. Ram Bux Singh , a pioneering figure in biogas and renewable energy , is being posthumously honored by the Government of India, even as his decades-old innovations provide a blueprint for today’s challenges.

Captains extraordinaire: Ranking cricket’s most influential skippers

By Harsh Thakor* Ranking the greatest cricket captains is a subjective exercise, often sparking passionate debate among fans. The following list is not merely a tally of wins and losses; it is an assessment of leadership’s deeper impact. My criteria fuse a captain’s playing record with their tactical skill, placing the highest consideration on their ability to reshape a team’s fortunes and inspire those around them. A captain who inherited a dominant empire is judged differently from one who resurrected a nation’s cricket from the doldrums. With that in mind, here is my perspective on the finest leaders the game has ever seen.

Swami Vivekananda's views on caste and sexuality were 'painfully' regressive

By Bhaskar Sur* Swami Vivekananda now belongs more to the modern Hindu mythology than reality. It makes a daunting job to discover the real human being who knew unemployment, humiliation of losing a teaching job for 'incompetence', longed in vain for the bliss of a happy conjugal life only to suffer the consequent frustration.

‘No merit’ in Chakraborty’s claims: Personal ethics talk sans details raises questions

By Jag Jivan A recent opinion piece published in The Quint by Subhash Chandra Garg has raised questions over the circumstances surrounding the resignation of Atanu Chakraborty from HDFC Bank , with Garg stating that the exit “raises doubts about his own ‘ethics’.” Garg, currently Chief Policy Advisor at Subhanjali and former Secretary of the Department of Economic Affairs, Government of India, writes that the Reserve Bank of India ( RBI ) appears to find no substance in Chakraborty’s claims, noting, “It is clear the RBI sees no merit in Atanu Chakraborty’s wild and vague assertions.”

Search This Blog