Dismal performance of Infosys in the first-quarter

Infosys is no longer leading player in India’s IT sector. Infosys's dismal first-quarter performance proved that this company no longer represents the broader trends in the sector. As IT sector is booming, a strong demand emerges globally for IT outsourcing, it is very disappointing result for this IT giant. Infosys's first-quarter net profit missed expectations.

While Infosys’s biggest competitor and India’s largest IT player TCS is showing consecutive outstanding growth rate, Infosys’ result are very dull. 

While TCS has recovered from its loss and within 2 years till March 2011, they have started showing profit in sales and operations by 10% & 16%, Infosys recorded 8% and 8.1% growth respectively.

While talking to the media a senior official of Infosys told that they are looking forward to a stronger second half compared to the first half.

Strange is that even smaller competitors of Infosys like Cognizant and HCL Tech, have been able to take advantage of the rebound in demand to register better growth, but Infosys strategy fails largely. Therefore it raises some serious questions over the strategies and plans that Infosys depends upon.

The reason management of Infosys gives that the performance was hit badly due to wage hikes. But India’s second largest IT Company used to show path to others how to curb the wage hikes and still register significant profitable growth. This time around it was severely missing.

Google to open research institute in German

Berlin's oldest university Humboldt University today announced that they are going to be partnering with Google to start a research institute. There will be three German institutions which are associated with this project. The Berlin University of Arts, the Social Science Research Centre Berlin and the Hamburg Hans-Bredow-Institute will take technological and monetary help to establish world class research institute in Berlin.

Google will fund the institute with (euro) 4.5 million ($6.41 million) for the first three years. After that the group is looking for other sponsors.

Humboldt University issued one statement stating that while the institute would be financed by Google, it would be independent in its scientific research and organization. Google Chairman Eric Schmidt said, “It is great that we managed to get these four relevant organizations on board.'' “The new institute will be completely independent from Google that is very important.'' He adds.

Humboldt University said the Independent Research Institute for Internet and Society would open in late October 2011 and examine the evolution of the Internet and its impact on society, science, politics and the economy. The institute ensure focus on innovation, Internet and media policy, philosophy and constitutional rights.

Car Sales slow in June 2011

Although Car sales in India increased 1.6% in June but it is the slowest pace of growth in more than two years.  The drop happens due to rising interest rates, fuel prices and vehicle costs shrunk demand in the world's second-fastest growing auto market.

Indian automakers sold 143,370 cars in June, their slowest pace since March 2009, according the Society of Indian Automobile Manufacturers (SIAM). Sales of trucks and buses however, a key barometer of economic health, rose 17.8% to 62,009 vehicles in June.

 India's central bank has raised interest rates ten times since March last year in an effort to battle stubbornly high inflation, a move that has forced consumers to tighten their purse strings. Therefore middle class car buyers not opting to come forward and claim bank loans for car purchase.

Kishor Ostwal, chairman at brokerage CNI told media,"This was expected. Rising interest rates and inflation are contributing to slowing sales. Also, ahead of the monsoons, demand for cars typically slows down.”

Top car seller of the country, Maruti Suzuki India’s sale fell 8.8% to 80,298 vehicles in June, marking the first decrease since December 2008. Production of Maruti also was hurt by a strike last month that led to a production loss of about 16,000 cars.

Tata Motors, India's largest maker of trucks and buses and the manufacturer of the world's cheapest car Nano also noted 1% fell down in sales.

Skoda to introduce new models in India

Czech auto manufacturer Skoda’s present popularity and growth in India makes a bright future for the company and they are now looking forward to another decade of rapid growth. Skoda is now planning to introduce new range of models. They want to concentrate more on car design keeping in mind the Indian consumer choice.

Skoda Rapid will hit the market soon and expected to give tight competition to the VW Vento. It would be marginally cheaper yet wonderfully built.

Skoda is also looking forward to launch Rs 4 lakh hatchback and a sub-four-metre saloon that will be based on the VW Up platform and will sit neatly below the Rapid.

Skoda get ready to exploit the niche compact SUV market with different variants of the Skoda Yeti. An inexpensive 110bhp version, will be launched later this year and an automatic version with a DSG ’box will come sometime next year.  The Laura RS, a sportier version of the current Laura, with a firm suspension and body kit but without an engine upgrade is also ready for launch this August.

The company is all set to bring back the Octavia name with the next-generation Laura. The next-gen Octavia would be unveiled next year.

Atlantis reached at space station on its last mission

After 30-year since its inception, nearly $200 billion expenditure and costing 14 valuable lives of astronauts, Atlantis is on the final flight of the US shuttle programme arrived at the International Space Station on Sunday for the final time. US space shuttle Atlantis to deliver a last batch of supplies to the orbiting outpost on the final duty.

A two-day journey that began with an emotional farewell from the Kennedy Space Center, about 1 million viewers gathered on Friday to watch the shuttle thunder into the sky for the program's 135th and final flight.

Atlantis is going to retire to make way for a new generation spacecraft of which according to NASA and US president Barack Obama will put US astronauts on an asteroid and then on to Mars.

"Welcome to the International Space Station for the last time," station flight engineer Ron Garan radioed to the crew member.

Mission commentator Rob Navias described the journey as "Poetry in motion".

8 Indian companies make it to Fortune 500

Eight Indian companies have made it to Fortune magazine's global list of world's 500 largest companies for 2011. Indian Oil finds the place in the top 100 (98) and Reliance Industries in 134th spot. 

Other Indian companies in the list are Bharat Petroleum (271), State Bank of India (291), Hindustan Petroleum (335), Tata Motors (358), ONGC (360) and Tata Steel (369). Last year’s Fortune 500 list also featured the same eight Indian companies. This year’s ‘Fortune 500’ list features 61 Chinese companies.

Fortune's list of 500 largest companies in the world for 2011 is topped by retail giant Wal-Mart Stores with annual revenues of USD 421,849 million. Second position goes to Royal Dutch Shell with annual revenues of USD 378,152 million and Exxon Mobil with USD 354,674 million annual revenues came in third positions. Other companies in the global top ten are BP (4), Sinopec Group (5), China National Petroleum (6), State Grid (7), Toyota Motor (8), Japan Post Holdings (9) and Chevron (10).

Apart from State Bank of India, all other Indian companies have improved their positions compare to last year. State Bank of India was at the 282 spot, Reliance Industries was in 175th position and Indian Oil was in 125th place. Bharat Petroleum (307), Hindustan Petroleum (354), Tata Steel (410), ONGC (413) and Tata Motors (442).

Indian Oil’s annual revenue touched USD 68,837 million while Reliance Industries stood at USD 58,900 million. Bharat Petroleum have revenues of USD 34,102 million, while State Bank of India netted USD 32,450 million in revenues. The revenues of Hindustan Petroleum's stood at USD 28,593 million, Tata Motors (USD 27,046 million), ONGC (USD 26,945 million) and Tata Steel (USD 26,065 million).

India's poverty will fall by 29% within 2015: UN report

The UN Millennium Development Goals Report predicts that India's poverty rate will be drop from 51% to 22% in the next four years. By 2015, As many as 320 million people in India and China are expected to come out of extreme poverty. Those living on less than $1.25 a day are considered poor.

"In Southern Asia, however, only India, where the poverty rate is projected to fall from 51% in 1990 to about 22% in 2015, is on track to cut poverty in half by the 2015 target date," the UN report said.

However Southern Asia continues to delay in terms of progress in the nutrition, sanitation and gender equality.

According to the report the number of people living in extreme poverty both in India & China between 1990 and 2005 declined by about 455 million, and additional 320 million people are expected to come out poverty by 2015.

 UN World Food Programme's representative and country director Mihoko Tamamura told media, "Despite impressive economic growth in India in the last few years, inequalities persist among people based on class, gender and cast."

 "If India does not meet Millennium Development Goals (MDGs), the world will not..." she adds.