Double-digit pay hikes for techies this year

BANGALORE: The salary increment season has just started. And techies have something to look forward to. In contrast to the salary cuts and the single-digit hikes during the slowdown years, increments this year are expected to be in double digits for most.

The surge in demand for IT globally and rising customer confidence have substantially increased the demand for people. A quick check done by TOI found that average increments would be in the 12% to 15% range. People in specialized areas, like the product space, are expected to get up to 20% or more.

Fresher salaries/stipends are already up by 10% to 15% compared to last year. Hires from premier educational institutions have seen 15% to 20% increases this year. Recruiters say the country's top tech firms - TCS, Wipro, Infosys, HCL and Cognizant - are considering a 10% to 15% average hike this year. A senior official at Infosys said the company is looking at a pay hike in June and that it should be in the range of 10% to 12%.

Wipro has just started its appraisal process. An e-mail to employees on Wednesday said the process would be completed by May. Increments are expected to be announced in June-July, and will be effective June 1. Sources in the company said increments would be in the 12-15% range, against 8-12% last year.

C Mahalingam, senior V-P and HR head in Symphony Services, said the situation had improved significantly for IT companies. "Markets are warming up. Customer rates are improving. There is also tension in the talent demand-supply scenario. All these will have a positive impact on increments this year,'' he said.

Roy Joseph, head of HR in the technology product development and sourcing of Mahindra & Mahindra, said that with the economy rebounding quicker that expected, there is additional pressure on retaining the best talent. "There is limited supply of quality talent. That means a scramble for good people. Ultimately, what prompts good talent to remain where they are is the remuneration.''

Mahalingam said that people with 3-8 years of experience have become particularly hot property. That's because business has increased rapidly and has not given enough time for companies to train freshers to deal with these orders. However, increments will remain lower than what they were in the years immediately preceding the global recession. Companies are cautious about the global economic outlook, given the sluggish recoveries in western markets and the problems in Japan and West Asia. Salary hikes this year will reflect that caution.


NAME-DEEPAK KUMAR JHA
PGDM 2nd (2010-12)

BSNL's FY11 losses increase 50% to Rs 2,725 crNEW DELHI: State-owned telecom firm BSNL is expected to post 50% higher losses for the year ended March 31, capping a series of dismal results in the last four years that saw the erstwhile monopoly being reduced to a bit player in the fast-growing market. The unlisted company has told the government that it will post 2,725-crore losses for the year-ended March 11. BSNL, which suffered from rampant pol ITI )cal interference under former telecom minister A Raja, had earlier announced a loss of 1,823 crore for the year to March 2010, a first for the company since it was set up. The losses would have been much higher but for the 4,132-crore income from non-telecom-related activities. The telco has also told a government panel that its revenues for the fiscal ended March 11 was expected to be 31,738 crore, about 1% lower compared to the previous year. The company has projected 623-crore losses for 2011-12. However, the revenue is likely to see a jump for the first time in five years with a projected increase to 36,569 crore in FY12. BSNL has presented these figures to the Board for Reconstruction of Public Sector Enterprises, which has been in discussions with the telco's top management to chart out a revival path for it. ET has reviewed the BRPSE report, which contained the details of the telco's financials. BSNL has been deteriorating in financial performance over the years as it could not expand on time. It could not compete with the nimble-footed private mobile phone firms, such as Bharti Airtel, which were taking decisions quickly. Such is BSNL's slide that it has sought a 3,000-crore loan to meet operating expenses in the fiscal ended March 11 as its expenditure was higher than its revenues by this amount. BSNL saw its overall revenue fall from 39,715 crore in 2006-07 to 38,053 crore in 2007-08 and further to 35,812 crore in 2008-09, before falling to 32,046 in 2009-10. Its fall from grace is best explained from the fact that its annual revenues were over the 40,000-crore mark for the year-ended March 06. For the fiscal year to end-March 2009, BSNL showed a meagre 575 crore as profit. Even this was possible only because interest income from its cash reserves was about 3,900 crore. In 2007-08, its net profit was 3,009 crore on interest income of 4,004 crore, proving that its profits in the past three years has less to do with its telecom business. In 2009, Prime Minister Manmohan Singh , worried about the steep decline in BSNL's profitability over the years, sought revival suggestions from Sam Pitroda Pitroda and banker Deepak Parekh. They in turn recommended a strategic 30% stake sale and staffs cut by 100,000 and also raise funds from the sale of its infrastructure, such as signal towers and real estate. But the government's failure to act on the Pitroda report, despite the BSNL board's approval, has posted a serious setback in plans to revive the telco. BSNL's plans to sell 30% stake through an IPO. But the telecom department told a parliamentary committee last year that BSNL's listing will be taken up only after the company's performance improves in order to get the right valuation. ET had reported on Tuesday that Board for Reconstruction of Public Sector Enterprises has recommended that BSNL merge with its smaller sister MTNL as well as communications gear maker Indian Telephone Industries (ITI) . NEW DELHI: State-owned telecom firm BSNL is expected to post 50% higher losses for the year ended March 31, capping a series of dismal results in the last four years that saw the erstwhile monopoly being reduced to a bit player in the fast-growing market. The unlisted company has told the government that it will post 2,725-crore losses for the year-ended March 11. BSNL, which suffered from rampant pol ITI )cal interference under former telecom minister A Raja, had earlier announced a loss of 1,823 crore for the year to March 2010, a first for the company since it was set up. The losses would have been much higher but for the 4,132-crore income from non-telecom-related activities. The telco has also told a government panel that its revenues for the fiscal ended March 11 was expected to be 31,738 crore, about 1% lower compared to the previous year. The company has projected 623-crore losses for 2011-12. However, the revenue is likely to see a jump for the first time in five years with a projected increase to 36,569 crore in FY12. BSNL has presented these figures to the Board for Reconstruction of Public Sector Enterprises, which has been in discussions with the telco's top management to chart out a revival path for it. ET has reviewed the BRPSE report, which contained the details of the telco's financials. BSNL has been deteriorating in financial performance over the years as it could not expand on time. It could not compete with the nimble-footed private mobile phone firms, such as Bharti Airtel, which were taking decisions quickly. Such is BSNL's slide that it has sought a 3,000-crore loan to meet operating expenses in the fiscal ended March 11 as its expenditure was higher than its revenues by this amount. BSNL saw its overall revenue fall from 39,715 crore in 2006-07 to 38,053 crore in 2007-08 and further to 35,812 crore in 2008-09, before falling to 32,046 in 2009-10. Its fall from grace is best explained from the fact that its annual revenues were over the 40,000-crore mark for the year-ended March 06. For the fiscal year to end-March 2009, BSNL showed a meagre 575 crore as profit. Even this was possible only because interest income from its cash reserves was about 3,900 crore. In 2007-08, its net profit was 3,009 crore on interest income of 4,004 crore, proving that its profits in the past three years has less to do with its telecom business. In 2009, Prime Minister Manmohan Singh , worried about the steep decline in BSNL's profitability over the years, sought revival suggestions from Sam Pitroda Pitroda and banker Deepak Parekh. They in turn recommended a strategic 30% stake sale and staffs cut by 100,000 and also raise funds from the sale of its infrastructure, such as signal towers and real estate. But the government's failure to act on the Pitroda report, despite the BSNL board's approval, has posted a serious setback in plans to revive the telco. BSNL's plans to sell 30% stake through an IPO. But the telecom department told a parliamentary committee last year that BSNL's listing will be taken up only after the company's performance improves in order to get the right valuation. ET had reported on Tuesday that Board for Reconstruction of Public Sector Enterprises has recommended that BSNL merge with its smaller sister MTNL as well as communications gear maker Indian Telephone Industries (ITI) .

NEW DELHI: State-owned telecom firm BSNL is expected to post 50% higher losses for the year ended March 31, capping a series of dismal results in the last four years that saw the erstwhile monopoly being reduced to a bit player in the fast-growing market. The unlisted company has told the government that it will post 2,725-crore losses for the year-ended March 11.

BSNL, which suffered from rampant pol ITI )cal interference under former telecom minister A Raja, had earlier announced a loss of 1,823 crore for the year to March 2010, a first for the company since it was set up. The losses would have been much higher but for the 4,132-crore income from non-telecom-related activities. The telco has also told a government panel that its revenues for the fiscal ended March 11 was expected to be 31,738 crore, about 1% lower compared to the previous year. The company has projected 623-crore losses for 2011-12. However, the revenue is likely to see a jump for the first time in five years with a projected increase to 36,569 crore in FY12.

BSNL has presented these figures to the Board for Reconstruction of Public Sector Enterprises, which has been in discussions with the telco's top management to chart out a revival path for it. ET has reviewed the BRPSE report, which contained the details of the telco's financials.

BSNL has been deteriorating in financial performance over the years as it could not expand on time. It could not compete with the nimble-footed private mobile phone firms, such as Bharti Airtel, which were taking decisions quickly. Such is BSNL's slide that it has sought a 3,000-crore loan to meet operating expenses in the fiscal ended March 11 as its expenditure was higher than its revenues by this amount.

BSNL saw its overall revenue fall from 39,715 crore in 2006-07 to 38,053 crore in 2007-08 and further to 35,812 crore in 2008-09, before falling to 32,046 in 2009-10. Its fall from grace is best explained from the fact that its annual revenues were over the 40,000-crore mark for the year-ended March 06.

For the fiscal year to end-March 2009, BSNL showed a meagre 575 crore as profit. Even this was possible only because interest income from its cash reserves was about 3,900 crore. In 2007-08, its net profit was 3,009 crore on interest income of 4,004 crore, proving that its profits in the past three years has less to do with its telecom business.

In 2009, Prime Minister Manmohan Singh , worried about the steep decline in BSNL's profitability over the years, sought revival suggestions from Sam Pitroda Pitroda and banker Deepak Parekh. They in turn recommended a strategic 30% stake sale and staffs cut by 100,000 and also raise funds from the sale of its infrastructure, such as signal towers and real estate. But the government's failure to act on the Pitroda report, despite the BSNL board's approval, has posted a serious setback in plans to revive the telco. BSNL's plans to sell 30% stake through an IPO. But the telecom department told a parliamentary committee last year that BSNL's listing will be taken up only after the company's performance improves in order to get the right valuation.

ET had reported on Tuesday that Board for Reconstruction of Public Sector Enterprises has recommended that BSNL merge with its smaller sister MTNL as well as communications gear maker Indian Telephone Industries (ITI) .
JITENDRA KUMAR SINGH
PGDM SECOND SEM.

Maruti Suzuki stock slips on products recall

MUMBAI: Car-maker Maruti Suzuki fell by over 2 per cent in early trade on the BSE on Thursday after the company said it will recall 13,157 units of three diesel-drive models -- Dzire, Swift and Ritz.

The scrip of the country's largest car-maker slipped by 2.18 per cent to an early low of Rs 1,266.35 on the Bombay Stock Exchange (BSE).

Investors offloaded the company's stock on the National Stock Exchange as well, where it dropped by 2.27 per cent to a low of Rs 1,268.

In an announcement to the stock exchanges after the market close, the company said, "Maruti Suzuki India will inspect the 'Connecting Rod Bolt' for 13,157 units of Swift Dzire, Swift and Ritz diesel cars with engines manufactured between November 13, 2010, and December 4, 2010."

Yesterday also, the scrip settled 1.40 per cent lower on the BSE at Rs 1,294.65 a piece.

Meanwhile, the BSE key index Sensex was quoting down by 43.97 points at 19,568.23 at 1043 hrs.
NAME- DEEPAK KUMAR JHA
PGDM 2nd SEM (2010-12)

Silver spikes to Rs 58,400 on global cues

Silver continued its winning streak for the third straight session and surged Rs 900 to hit yet another high of Rs 58,400 per kg on Wednesday on sustained heavy buying by stockists, driven by a firm global trend.
Silver coins also rose by Rs 1,500 to scale a new peak of Rs 64,500 for buying and Rs 65,000 for selling of 100 pieces.
Gold also rose by Rs 150 to Rs 21,300 per 10 grams on heavy buying by retail customers for the ongoing 'Navratra' festival.
Trading sentiments turned bullish in overseas markets, as silver rose to a 31-year high and gold to a record level as the sovereign-debt crisis in Europe deepened, after Moody's Investors Service cut Portugal's credit rating and higher grain and oil prices worsened the inflation outlook.
In global markets, gold rose by 1.55 per cent to USD 1,457.80 an ounce and silver by 1.79 per cent to USD 39.28...
MANALI
PGDM 2ND SEM

Maruti Suzuki recalls 13,157 diesel cars

New Delhi: India's largest carmaker Maruti Suzuki India today said it will recall 13,157 units of its three diesel driven models of Dzire, Swift and Ritz due to a possible faulty engine part. "Maruti Suzuki India today announced that it will inspect the 'Connecting Rod Bolt' for 13,157 units of Swift Dzire, Swift and Ritz diesel cars with engines manufactured between November 13, 2010, and December 4, 2010," the company said in a statement.
Of the total recalls, 4,505 units will be of Swift Dzire, 6,841 units of Swift and 1811 units of Ritz diesel cars.
"If the Connecting Rod Bolt is found defective, the company will replace the component free of cost,".
MANALI
PGDM 2ND SEM

How should I start planning my finances?

How does one begin financial planning? Though a lot of advice on investing and planning is available in the media and on the Internet, where does one actually start? What should be the first step? The question is basic, but like all fundamental ones, it's an interesting query to answer. While planning your finances, the first step should be the assessment of various risks to your income.

Financial planning, at its core, is about managing one's income across a period of time. Sometimes, we set aside today's income for tomorrow; at other times, we spend tomorrow's income today. Even if we use it to build an asset, we hope to use it in the future, if there is a need. So, the obvious first step is to ask how secure your income is and the risks it can be exposed to. During the early stages of life, the focus is on securing income, which is why career plans emphasise on earning one. When we encourage a student working at a call centre to consider higher education, we are persuading him to invest in the human asset to enhance future earnings. When my driver chooses to educate his son in an English-medium school, he is keen to secure his son's future income.

Every investor should determine the potential risks to his income and begin the financial planning process accordingly. For a film star or a sports star, a short period of high income is a risk. Building assets that replace his professional income when he retires early should be his primary strategy. Building a second career could be another one.

A salaried investor would identify retirement as a source of risk and set aside his current income to build a corpus that would replace regular income after he stops working. For an entrepreneur, whose life's earnings are invested in his business, the risks are tied too closely to those of the business venture. The assets he builds outside his business will have to consider this threat. Even a corporate treasurer aims to build other income that will de-risk the main source of income for the business.

The two key elements of managing risk are insurance and investment. To insure is to secure the income from unexpected events, such as poor health and death. To invest is to augment, or in the best case, replace the regular source of income with that from investments.

The third element is more tactical and involves using leverage or borrowings. It involves building assets using borrowed funds, so that the benefit of the asset over and above the borrowing cost, goes towards augmenting the income. The risk in this strategy is the possible fluctuation in the value of the asset and the possibility that it drops below the outstanding loan. Day trading with margin funds is a high-risk, income-generating tactic, if the cost of funds exceeds the income generated.

Risks to income can also come routinely if it is ill-matched to your needs or simply inadequate. Illness in the family can push an uninsured, low-income family into indebtedness. Family functions, expenses on durables, renovation, educational expenses are all lump-sum requirements for money that cannot be met by regular income. Financial planning is about providing for such large outlays, either through savings and investments, or through borrowings and staggered repayment. How a household manages the routine and expected charges on income, and the ad hoc and unexpected demands on it, determines how financially healthy it is. Routine borrowings reduce the future income and ability to spend and save, while regular savings cushion possible shocks to the future income. As risks to future income drop, households tend to spend more and save less. Ability and willingness to borrow also moves up with increased confidence about the future income.

Hence, financial planning cannot be described narrowly as a disciplined and frugal exercise of setting money aside for your needs. As long as it is aligned well to the expected future income and realistically considers the risks, it is a step in the right direction. 
ROHIT KALIA 
PGDM 2 SEM

India's gold demand to grow to 1,200 tonnes by 2020

Mumbai: Gold demand in India will continue to grow and is likely to reach 1,200 tonnes or approximately Rs 2.5 trillion by 2020 at current price levels, according to a research by World Gold Council (WGC).

"The rise of India as an economic power will continue to have gold at its heart. India already occupies a unique position in the world gold market, and as private wealth in India surges over the next ten years, so will Indian demand for gold," WGC Managing Director, India and the Middle East, Ajay Mitra said in a statement here.

MANALI

PGDM 2ND SEM