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Unfazed Indian CEOs confident about growth
By siliconindia
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Thursday, 24 July 2008, 01:21 IST
New Delhi: The incessant surge in the input and interest cost in India does not result in production slow down, finds CII survey. While 50 percent of CEOs surveyed refused any hamper to their top line growth only 18 percent affirmed being affected.
The survey brought in many of the CEOs from top Indian companies including ICICI MD and CEO KV Kamath, TVS Motor Chairman and MD Venu Srinivasan, Bajaj Auto Chairman Rahul Bajaj, Ashok Leyland MD R Seshasayee, GE India CEO Tejpreet Chopra, HUL MD Nitin Paranjpe and HCL Infosystems CEO Ajay Chowdhry, with similar consensus that they do not foresee any production slowdown in this fiscal, even as rising input and interest costs are affecting the net profit margins.
It was also said that even as uncertainty remained on overall industrial and GDP growth, the firms do not expect production to slow down at their companies. However, a toll in the net profit margins can be expected with the increase in raw material costs as well as interest costs. The survey said that, with the inflation on the rise as an outcome of the rise in global commodity prices, the risks involved in the economic scenario are definitely large. About 39 percent of respondents said their cost of production had increased by 10 percent while 32 percent said the increase had been 10-20 percent.