54% of firms report ‘less than normal’ or lower sales, subdued profit margins: IIM-A survey

By A Representative

The high profile Business Inflation Expectations Survey (BIES) of the Indian Institute of Management-Ahmdabad (IIM-A) has revealed that About 54% of the firms are still reporting ‘somewhat less than normal’ or lower sales, even as pointing out that overall, the profit margins expectations have remained subdued.

Based on responses of around 1,100 companies, the BIES provides ways 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.

Questions asked include year-ahead cost expectations and the factors influencing price changes, such as cost, profit, sales levels, etc. "The survey is unique in that it goes straight to businesses -- the price setters -- rather than to consumers or households, to understand their expectations of the price level changes", states an IIM-A note.

It claims, "One major advantage of BIES is that one can get a probabilistic assessment of inflation expectations and thus get a measure of uncertainty. It also provides an indirect assessment of overall demand condition of the economy. Results of this survey are, therefore, useful in understanding the inflation expectations of businesses and complement other macro data required for policy making."

Conducted at the Misra Centre for Financial Markets and Economy, IIM-A,

the survey finds that, overall, "the cost perceptions data in May 2024 indicate moderation in cost pressures, although the percentage of firms perceiving very significant cost increase (over 10%) in May 2024 has increased marginally to 14%, from around 13% reported in April 2024."

IIM-A note says, "The percentage of firms reporting moderate to significant cost increase (3.1% to 10.0%) has declined significantly to 41% in May 2024, from 47% reported in April 2024."

It points out, "The sales expectations scenario during February-May 2024 remained similar. Only around 18-19% of the firms are reporting ‘somewhat greater than normal’ sales. About 54% of the firms are still reporting ‘somewhat less than normal’ or lower sales during March-May 2024."

Normal means as compared to the average level obtained in the preceding 3 years, excluding the Covid-19 period.

The survey also reveals that "around 41% of the firms in May 2024 are reporting profit margins to be ‘about normal’ or greater – down from 48% reported in April 2024", underlining, "Overall, the profit margins expectations remained subdued in May 2024."

The survey also finds that one year ahead business inflation expectation has "declined by 25 basis points to 4.59% in May 2024 from 4.84% reported in April 2024. Firms’ average inflation expectation during the past 12 months works out to be 4.35%."

Comments

From algorithms to exploitation: New report exposes plight of India's gig workers

By Jag Jivan The recent report, "State of Finance in India Report 2024-25," released by a coalition including the Centre for Financial Accountability, Focus on the Global South, and other organizations, paints a stark picture of India's burgeoning digital economy, particularly highlighting the exploitation faced by gig workers on platform-based services.

'Condonation of war crimes against women and children’: IPSN on Trump’s Gaza Board

By A Representative The India-Palestine Solidarity Network (IPSN) has strongly condemned the announcement of a proposed “Board of Peace” for Gaza and Palestine by former US President Donald J. Trump, calling it an initiative that “condones war crimes against children and women” and “rubs salt in Palestinian wounds.”

India’s road to sustainability: Why alternative fuels matter beyond electric vehicles

By Suyash Gupta* India’s worsening air quality makes the shift towards clean mobility urgent. However, while electric vehicles (EVs) are central to India’s strategy, they alone cannot address the country’s diverse pollution and energy challenges.

Gig workers hold online strike on republic day; nationwide protests planned on February 3

By A Representative Gig and platform service workers across the country observed a nationwide online strike on Republic Day, responding to a call given by the Gig & Platform Service Workers Union (GIPSWU) to protest what it described as exploitation, insecurity and denial of basic worker rights in the platform economy. The union said women gig workers led the January 26 action by switching off their work apps as a mark of protest.

Jayanthi Natarajan "never stood by tribals' rights" in MNC Vedanta's move to mine Niyamigiri Hills in Odisha

By A Representative The Odisha Chapter of the Campaign for Survival and Dignity (CSD), which played a vital role in the struggle for the enactment of historic Forest Rights Act, 2006 has blamed former Union environment minister Jaynaynthi Natarjan for failing to play any vital role to defend the tribals' rights in the forest areas during her tenure under the former UPA government. Countering her recent statement that she rejected environmental clearance to Vendanta, the top UK-based NMC, despite tremendous pressure from her colleagues in Cabinet and huge criticism from industry, and the claim that her decision was “upheld by the Supreme Court”, the CSD said this is simply not true, and actually she "disrespected" FRA.

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.

Over 40% of gig workers earn below ₹15,000 a month: Economic Survey

By A Representative The Finance Minister, Nirmala Sitharaman, while reviewing the Economic Survey in Parliament on Tuesday, highlighted the rapid growth of gig and platform workers in India. According to the Survey, the number of gig workers has increased from 7.7 million to around 12 million, marking a growth of about 55 percent. Their share in the overall workforce is projected to rise from 2 percent to 6.7 percent, with gig workers expected to contribute approximately ₹2.35 lakh crore to the GDP by 2030. The Survey also noted that over 40 percent of gig workers earn less than ₹15,000 per month.

Stands 'exposed': Cavalier attitude towards rushed construction of Char Dham project

By Bharat Dogra* The nation heaved a big sigh of relief when the 41 workers trapped in the under-construction Silkyara-Barkot tunnel (Uttarkashi district of Uttarakhand) were finally rescued on November 28 after a 17-day rescue effort. All those involved in the rescue effort deserve a big thanks of the entire country. The government deserves appreciation for providing all-round support.

Death behind locked doors in East Kolkata: A fire that exposed systemic neglect

By Atanu Roy* It was Sunday at midnight. Around 30 migrant workers were in deep sleep after a hard day’s work. A devastating fire engulfed the godown where they were sleeping. There was no escape route for the workers, as the door was locked and no firefighting system was installed. Rules of the land were violated as usual. The fire continued for days, despite the sincere efforts of fire brigade personnel. The bodies were charred in the intense heat and were beyond identification, not fit for immediate forensic examination. As a result, nobody knows the exact death toll; estimates are hovering around 21 as of now.

Search This Blog