Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

India Inc may report lower profits in Q1 due to soaring costs. Your views?

Asked by Good Citizen, 09 Jul '10 12:57 pm
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (3)

1.

Its the base effect!!
Answered by dharamender nebhnani, 09 Jul '10 02:39 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
 
2.

1)The situation is not so bad. The rising salary, weak Euro and pressure on billing rates would have its adverse impact on the profitability of IT companies who depend on Europe and America for their businesses. Their profit margin is expected to erode by about 1-2% only whereas they are optimistic of increasing their turnover by 4% or more as the U.S. customers have started renewing their outsourcing jobs to India once again which had seen a sharp fall before.
2)However, it is true that midsized and small IT companies would suffer more because of weak Euro and rising salary as they are not able to cope themselves with the fast changing business environment/economy in Europe which is not in the position to renew the existing contracts and offer higher prices to its suppliers.
3)As far as sectors like metal and vehicle producers are concerned, the profit margin is likely to be more realistic compared to the past when they had above normal profit ratio due to easy monetary and fiscal ...more
Answered by Tony Fernandez, 09 Jul '10 01:42 pm

 
  
Report abuse
Useful
 (1)
Not Useful
 (0)
Your vote on this answer has already been received
3.

May be europe is also one of the factor which will definitely give its impact on Q1
Answered by sushil trivedi, 09 Jul '10 12:58 pm

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

Professor Arindam Chaudhuri is the Dean, Centre for Economic Research & Advanced Studies at IIPM (The Indian Institute of Planning & Management, New D..more

Answered by tanmay anand