Tata Consultancy Services (TCS) Chief Executive Officer N Chandrasekaran said on Friday that weakening currencies in the European region will impact profit and business of the country’s top software exporter this year. He added that it is unlikely to witness any improvement in pricing for the next few quarters.

TCS derives 10% of its revenues from European customers, which includes AXA and Belgacom. “The euro and pound sterling are significantly weakening and the rupee is appreciating. That will definitely have an impact on our revenue line,” he said. “Our exposure in euro and pound sterling is less than the dollar, so the impact will be lesser. Still, it is a cause for worry if the currencies continue to weaken.”

However, he said that the company will not stay away from Europe. “TCS has by far the most diversified footprint across the world, including emerging markets. We will continue to grow our business in Europe. Europe’s economic situation has not caused any direct impact on our business at this point. In fact, our business model is part of the solution for their recovery. We have to watch the situation carefully. But we are doing well, especially in continental Europe,” he said.

About the demand and pricing in European markets, Mr. Chandrasekaran said, “We don’t expect any increase in the immediate quarters this year. If this demand uptick continues, we can see some improvement towards the end of this fiscal year.” One of the main reasons attributed to the present exacting attitude of outsourcing customers is the aftereffect of recession.

During the current year, Euro lost ground by around 13% to the USD.

The government has targeted a solar capacity of 22,000 mw by 2022 and is close to approving 15 to 20 projects under the Jawaharlal Nehru National Solar Mission. The investment for these projects is about Rs.20, 000 crore in the span of two to three years. Tata BP, Moser Baer, KSK Surya Photovoltaic Ventures, Lanco Solar and Titan are some of the companies which have submitted proposals for these projects. Government has already announced tax sops and incentives for investors in solar energy. Government has drawn up new policy which offers a capital subsidy of 20-25% for companies investing in semiconductor and solar photo voltaic cell manufacturing.

The total estimated value of the project is about Rs 150,000 crore but initial investment would be around Rs.20, 000 crore to set up 1,300 mw of solar power by the end of 2013. Uttar Pradesh, Rajasthan, Andhra Pradesh, Orissa and West Bengal are some of the destinations which investors are looking at for these projects. Analysts say that the target set by the government is very high and there are other factors involved which could pose challenge. One of the major factors is the cost and difficulty in raising funds. Usually the cost varies between Rs 15-17 crore per mw and could be higher if based on imported technology. Raising such huge funds could be a challenge for small players.

For a long time, the agriculture sector has been the primary contributor to the GDP. However, recently, the numbers from the last financial year have been released and the percentage contributions of various sectors have come as a surprise. This last year, agriculture was not the largest contributor to the GDP. It has been now replaced by the industrial sector.

While there are some who may rejoice over this news, feeling that the Indian industrial sector has finally come of age, this is a worrying trend. A decrease in agricultural contribution to GDP is an indication of less production in the sector. For the past few years, due to the slow change in climate, farmers have been having a tough time with their crops. On top of it, there has been unprecedented growth in the real estate sector and may farm lands have been wiped out.

As the population of India grows and there are even more mouths to feed, a dip in the agricultural produce may not be the most encouraging sign. In the past couple of years, India already has had to deal with a dire shortage of food and therefore increased prices of various commodities. If the trend continues in the coming months too, there may be more effect on the prices and there may be more imports of food.

India’s first IDR issue, the $500 million one from Standard Chartered India is subscribed a mere 11% till day three. The National Stock Exchange has stated that bids were received for 22.34 million IDRs until closing time on Thursday. The lending firm is offering 240 million IDRs in the price band of Rs. 100 to Rs. 115. A cluster of 10 IDRs (Indian Depository Receipts) is equivalent to a single share of the London-based StanChart Bank, which is listed in the London and Hong Kong stock exchanges.

The highlight of the issue till date is the absence of Foreign Institutional Investors (FIIs) from the scene. However, it is a standard practice among FIIs to enter the fray only on the last day, as they need to provide 100% upfront margin. The portion earmarked for qualified institutional buyers in the issue has been subscribed 15% till Day 3, i.e., 12.61 million IDRs.

Indian insurance funds are disqualified from buying up IDRs, which may be one of the reasons for its lukewarm show. It is the insurers who pushed up the Sensex figures, even when global recession was taking its toll elsewhere.

Non-institutional and retail investors have subscribed 15% and 5% till Day 3. The deterring factors for the low subscription could be concerns about currency volatility and regulatory risks associated with StanChart’s global operations. The bank’s shares are denominated in British pounds. The lender is offering a 5% discount on the final price for individual investors and employees who bid for Rs. 100,000 or less and has set aside 30% of the issue for retail investors and 2% for employees.

Today, May 28, is the last day of the issue.