The monthly Business Inflation Expectations Survey (BIES), conducted by the Indian Institute of Management-Ahmedabad (IIM-A), states that in the month of July, 2019, almost three-fourth of the 1600-odd surveyed firms reported "less than normal" sales and about half of the them have "much less than normal profit margins."
The survey which began in May, 2017, mapping business establishments engaged mostly in the manufacturing sector, saw the highest number of firms reporting sales that were "somewhat or much less than normal." Normal here means as compared to the average level obtained in the preceding three years.
The proportion of firms in the survey reporting "much less than normal" profit margins has increased to 54 per cent in July this year, from the 45 per cent in April, 2019. "It may be mentioned that this proportion has crossed the 50 per cent mark for the first time in June, 2019," an official release regarding the survey stated.
On the other hand, the proportion of firms in the sample reporting "normal or greater than normal" profit margins has declined to 20 per cent in July. "Overall, the profit margin scenario has further deteriorated in July, 2019," the statement added.