drifting, page-50

Hi Malay

I agree that that is a positive sign that the business is picking up, however we shouldnt ignore the perspective that they are adding cost back into the business after having cut costs rigorously when the downturn occurred. The question is, is the incremental costs they are adding back in lower than the incremental revenues, and therefore are they able to maintain or improve their margins compared to before the cutbacks.

Cheers, Sharks.