India's MNCs Reaping Rewards of Cost Optimisation, Risk Control Measures

Cost-cutting measures and better risk management are bearing fruit for India's multinational companies who are expected to garner a bigger share of incremental global business after the global recovery gains momentum, says the Economic Times.


According to the Times, companies who depend highly on global trade registered significant improvement in their performance for the quarter ended December 2009, after four successive quarters of sharp declines in profits. India's MNCs recorded adjusted profit growth of 140% for the quarter--three times the growth rate for non-globalised companies.


The Times says that profit growth can be attributed to cost optimisation, which helped  companies reduce their other operating cost/sales ratio by as much as 7%, against 2% for companies depending on the domestic market.


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