Skip to main content

Sales, profits of Indian firms 'deteriorate', yet no significant increase in cost pressures

By Our Representative 

The Indian Institute of Management-Ahmedabad's (IIM-A's) latest Business Inflation Expectations Survey (BIES), a monthly exercise, has said that while cost perceptions data does not indicate significant increase of cost pressures, sales and profits of the Indian firms have deteriorated.
A report on the survey says, "The percentage of firms perceiving significant (over 6%) cost increase has remained unchanged around 33% during last two rounds Also, majority (over 27%) of the firms perceive that costs have gone up moderately – in the range of 3.1% to 6%."
However, the survey regrets, "About 61% of the firms are reporting ‘much less than normal’ or ‘somewhat less than normal’ sales in July 2023 – up from 56% reported in June 2023", adding, "The percentage of firms reporting ‘about normal’ sales has remained steady around 24% -- down from 26% reported in June 2023.
"Normal" means as compared to the average level obtained in the preceding three years, excluding the Covid-19 period, the report explains.
At the same time, the report says, "Around 69% of the firms are reporting profit ‘much less than normal’ or ‘somewhat less than normal’ in July 2023", suggesting, "Overall, the profit margins expectations have further deteriorated."
The IIM-A survey claims, it "provides ways to examine the amount of slack in the economy by polling a panel of business leaders." The questions posed include "questions about year-ahead cost expectations and the factors influencing price changes, such as profit, sales levels, etc."
Claiming to be "unique" as it "goes straight to businesses -- the price setters -- rather than to consumers or households, to understand their expectations of the price level changes", the report says, the survey "provides an indirect assessment of overall demand condition of the economy."
It insists, "Results of this Survey are... useful in understanding the inflation expectations of businesses and complement other macro data required for policy making", adding, "Companies are selected primarily from the manufacturing sector. The results are based on the responses of around 1,200 companies."

Comments

TRENDING

WHO move can 'enable' India to detain citizens, restrict freedom, control media

Counterview Desk  In an an open letter to Prime Minister Narendra Modi, with copies to concerned Cabinet ministers, bureaucrats and MPs,  health rights network  People’s Alliance for Public Health (PAPH alias JanSwasthya Morcha), has urged that India should not be a signatory to the World Health Organization ( WHO) Pandemic Agreement and Amendments to the  International Health Regulations (IHR) 2005  to be adopted at the 77th World Health Assembly in Geneva from 27th May to 1st June, 2024.

'Enough evidence': Covid vaccines impacted women's reproductive health

By Deepika*  In 2024, the news outlets have suddenly started reporting about covid vaccine side effects in a very extensive manner. Sadly, the damage is already done.

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah*   The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual. 

'Uncertainty in Iran': Raisi brokered crucial Chabahar Port deal with India

By Pranjal Pandey*  Ebrahim Raisi, the Iranian President, and the country’s foreign minister were tragically found deceased on May 20, 2024, shortly after their helicopter crashed in foggy conditions. In response, Supreme Leader Ayatollah Ali Khamenei swiftly appointed a relatively unknown vice president as the interim leader.

Informal, outdoor workers 'excluded': Govt of India's excessive heat policies

Counterview Desk  Top civil rights network, National Alliance of People's Movements (NAPM), has demanded urgent government action to protect millions of outdoor workers from extreme heat and heatwaves, insisting declaration of heatwaves as climatic disaster.

Desist from academic censorship, stop threatening scholars: Letter to ICMR

Counterview Desk  In a letter to the Indian Council of Medical Research (ICMR) director, the Universal Health Organisation (UHO) which consists of prominent health experts, has insisted that the Government of India’s top medical research agency should lead high quality research on vaccine safety and “desist from academic censorship”.

Growing stream of pollution infecting homes, bodies in US, Vietnam

By Erica Cirino*  Louisiana’s “River Parishes,” located along the Mississippi River between New Orleans and Baton Rouge, shoulder some of the worst industry impacts in the United States. As a result, this region has acquired a grim reputation as “ Cancer Alley .”