L&T must adopt a more conservative approach to hedging
Counters Swapnil Pawar, Director, Park Financial Advisors, “If it is on account of a business linked hedging, we do not see anything wrong with the loss.” If the prices went up and had been left unhedged; this would have shown in the loss of profits.
The company is increasing its efforts to shift to a ‘cost plus’ model to mitigate the impact of rising commodity prices. “From an earlier level of about 5-10% on a “cost plus basis”, now the company is looking at receiving almost 40% of its orders under this”, according to Abhishek. Robust performance of core business would enable L&T to sail through with ease. But it must take serious steps towards better risk management considering that its exposure to volatile commodity markets has increased quite significantly over the past few years.
Counters Swapnil Pawar, Director, Park Financial Advisors, “If it is on account of a business linked hedging, we do not see anything wrong with the loss.” If the prices went up and had been left unhedged; this would have shown in the loss of profits.
The company is increasing its efforts to shift to a ‘cost plus’ model to mitigate the impact of rising commodity prices. “From an earlier level of about 5-10% on a “cost plus basis”, now the company is looking at receiving almost 40% of its orders under this”, according to Abhishek. Robust performance of core business would enable L&T to sail through with ease. But it must take serious steps towards better risk management considering that its exposure to volatile commodity markets has increased quite significantly over the past few years.
Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).
and Arindam Chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
