Sunday, May 17, 2009

The Importance of Sharing

That's some of the nice feelings I take away from reading Patrice Hardy's interview in today's Week-end. The Naiade boss is taking the slowdown in business in his stride and is looking forward to optimise his brand new 4-star hotel in our sister island. He also reports a stable turnover thanks in part to having moved upmarket in the hospitality business.

A few days ago, GFA Insurance announced the sharing of 20% of its profits with its employees. Even CMT's Woo was seen on TV saying it would be indecent for him to go ask for money from Sithanen's controversial additional stimulus package and that he only expects a significant reduction in his profitability.

All of this is in sharp contrast with our professional whiners also known as GLDs (gourma lamin dipin), don't you think?


Seolid said...

Those you are refering to as "GLD" are in fact the "petit copain" and the controversial stimulus package is in fact the "part gateau petit copain".

And the finance minister indecently stated that the name of those who are the beneficiaries of the "part gateau" will have to be kept secret to preserve their credibility. Total BS!!!

Anonymous said...

For someone "taking it in his stride" Patrice Hardy is talking too much. What exactly is he trying to convince us of... or is he just thinking aloud, trying to convince himself?
What's so grate about Naiade? Similar turnover as last year same period, but on doubled capacity! Yes they've moved upmarket, but at the wrong time!
They've invested over Rs400 million in renovating their hotels during the biggest boom in Tourism and are now re-opening for business at the worse possible time. How are they planning to service the debt they've contracted in FX? It's not the cost of a passport that's preventing the high end clientelle they are trying to attract, is it?
Last quarter with all hotels now operational they managed to equal the sales. But the profit was only just 1/10 of the profit realised during the same period last year (logical when your capacity has doubled!). They also have to serve they debt as their leverage has increased by 1/3. With profits barely over Rs 10 million, how many quarters will they need to actually return to real profitability?

Sanjay Jagatsingh said...

That must be the AMIGO he mentioned in his budget last year.

A for Arrogant
M for Minister
I for Incompetent
G for Gato Pima
O for Opaque

Well, at least he is not whining. Are you saying the timing was not perfect? Hey, no big deal. Businessmen make errors all of the time. It's their problem. It becomes our problem when our money through some dumb stimulus package is doled out because they want rates of return higher than they should expect from the industry they are operating. Try to find out what Singapore Airlines did when SARS broke out.