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LATEST NEWS UPDATES | More firms battling squeeze in profit margins, finds IIM-A survey

More firms battling squeeze in profit margins, finds IIM-A survey

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published Published on Nov 14, 2018   modified Modified on Nov 14, 2018
-The Hindu Business Line

BIES for Sept 2018 points at more proportion of companies facing ‘much less than normal profits’

Ahmedabad:
The manufacturing sector seems to be going through a troubled time as more companies have indicated a ‘much less than normal’ profit margin, according to a survey by the Indian Institute of Management, Ahmedabad (IIM-A).

The latest Business Inflation Expectations Survey (BIES) for the month of September 2018, revealed that 45 per cent of the firms have indicated ‘much less than normal’ profit margins for the month of September 2018. The same was recorded at 42 per cent for the month of August.

“The proportion of firms reporting ‘normal or above normal’ profit has not witnessed a significant change during the last 3 months,” the study revealed. However , the proportion of companies witnessing a squeeze in the profit margins has been growing since June 2018, when 36 per cent companies believed profit margins to be ‘much less than normal’.

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The Hindu Business Line, 13 November, 2018, https://www.thehindubusinessline.com/economy/macro-economy/more-firms-battling-squeeze-in-profit-margins-finds-iim-a-survey/article25486128.ece?homepage=tru
 

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