LYKALABS Limited = RESULTS = FOR QTR ENDED DEC 2010 = LACK LUSTRE

Lyka Labs Limited

NSE Symbol       LYKALABS

Lyka Labs Limited has declared lack lustre (Consolidated) results for the quarter ending Dec,2010. These are compared with the previous qtr ended sep,2009 and corresponding qtr ending Dec,2009 and also the 12 months ended Sep,2010.

Net Sales : is Rs.33 Cr – down by 18.67% from previous qtr ended Sep’10; and up by 14.38% from corresponding qtr ended Dec,2009; and down by 5.1% on annualized basis (q1 x 4) from year ended Sep,2010.

Total Expenditure : is Rs.30 Cr – down by 19.84% from Q/e Sep’10; up by 16.85% from Q/ E Dec.2009 and down by 5.07% on annualized basis from Y/e Sep,2010.

Profit from Operations : is Rs.3.60 Cr; down by 21.56% from Q/e Sep,2010; up by 5.56% from Q/e Dec,2009; and down by 26.64% from Y/e Sep,2010 on annualized basis.

Profit before tax : is Rs.13.26 Cr; down by 86.56% from q/e Sep,2010; down by 69.31% from Q/e Dec,2009; and down by 80.13 from y/e Sep,2010 on annualized basis.

Consolidated Net Profit is : Rs.13.26 Cr – down by 90.44% from Q/e Sep,2010; down by 69.31% from Q/e Dec,2009; and down by 80.58% from y/e Sep,2010 (on annualized basis).

Basic EPS(in Rs.) is Rs.0.06 – against Rs.0.64 in Q/e Sep,2010; Rs.0.2 in Q/e Dec.2009; and Rs.1.27 for whole Y/e Sep,2010.

Thus, the consolidated results for Q1 ended Dec,2010 are totally lack lustre.

RESULTS TABLE :

LYKALABS - CONSOL	OCT10-DEC10	JUL10-SEP10	OCT09-DEC09	1009-0910
Net Sales	3300.74	4058.29	2885.71	13912.32
Net Sales	3300.74	-18.67	14.38	-5.1
Other Oprtg Income	89.75	181.4	48.79	820.15
Incr/Decr in SIT / WIP	97.68	201.28	-170.78	-183.12
Raw Materials	1009.83	1402.7	1196.8	5215.5
Traded goods	934.95	1040.5	566.53	3511.22
Employees Cost	347.98	283.87	279.88	1176.9
Depreciation	115.89	134.91	151.25	568.56
Other Expenditure	524.05	717.33	569.68	2480.01
Total Expenditure	3030.38	3780.59	2593.36	12769.07
Total Expenditure	3030.38	-19.84	16.85	-5.07
Profit from Operations	360.11	459.1	341.14	1963.4
Profit from Operations	360.11	-21.56	5.56	-26.64
Other Income	53.78	72.33	90.5	161.28
Interest	400.63	439.23	388.43	1719.57
Exceptional items	-	-6.49	-	138.24
Profit before tax	13.26	98.69	43.21	266.87
Profit before tax	13.26	-86.56	-69.31	-80.13
Tax Expense	-	-40	-	-6.26
Net Profit after tax	13.26	138.69	43.21	273.13
Net Profit	13.26	138.69	43.21	273.13
Consolidated Net Profit	13.26	138.69	43.21	273.13
Consolidated Net Profit	13.26	-90.44	-69.31	-80.58
Face Value (in Rs.)	10	10	10	10
Paid-up Equity	2158	2158	2158	2158
Reserves	-	-	-	7965.54
Basic EPS(in Rs.)	0.06	0.64	0.2	1.27
Public Holding (%)	76.7	76.7	76.7	76.7

ANNOUNCEMENTS

TO THE NSE

28-03-2011        the Board has fixed the date of Annual General Meeting as on April 29, 2011 and the Share Transfers Books and Registrar of Members will remain closed for a period of 5 days from April 25, 2011 to April 29, 2011 (both days inclusive) for the purpose of Annual General Meeting.

18-10-2010        The Company's factory at Ankleshwar has achieved record production for the month of September, 2010.

30-09-2010        The Company has been conferred 'Silver Patent Award' by the Department of Pharmaceuticals, Ministry of Chemical & Fertilizers, Government of India and Pharmaceutical Export Promotion Council for the year 2009-10 in recognition of commendable contribution in Formulation Patents Category.

14-08-2010        "A part of the Plant at Tarapur is undergoing upgradation from 1st August, 2010".

27-05-2009        "Our Bulk Drug Plant at Ankleshwar which was closed for the purpose of upgradation has been restarted".

13-05-2009        "Lyka BDR International Ltd has become a subsidiary of the Company."

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WARREN BUFFET = INVESTING TIPS FOR INDIA = BILL (AND MELINDA) GATES = 2 (OR 3) PHILONTHROPISTS = LEADING = AND SHOWING THE WAY

WARREN BUFFET

THE ORACLE OF OMAHA

In India with his Investing Tips

Warren Buffet was in India  this month. Along with Bill (and Melinda) Gates.

One successful Investor and another successful Inventor. Both were asking India’s heart to open up – itself, with generosity. And why not? They have shown the way themselves. Earning alone is not Life. The fulfillment of Life lies in how you spend your earning. These two are great teachers in that art.

Bill Gates has just lost his place at the top of the Billionaires List – but does it matter? It is time to compile the list of the most generous hearts. And, You will find him there - at the TOP OF THE LIST. Along with his wife Melinda Gates. And, along with Warren Buffet, the Oracle of Omaha.

They were practically saying, look, we have done it. We have opened up. The world needs it. You need it. Therefore, why don’t you. Life is here!

Kudos to both for what they are attempting -  telling the big bellies – to become big hearts. 

While writing this post - I took a long look at  the Bill Gates Foundation's web site. The efforts that Gates (and Warren together) are making - are FANTASTIC. Extraordinarily Humane. Long time ago - I had read that Gates wanted to put a computer in every home with a Microsoft Operating system.  Now, I think, he is putting himself in every home in many countries, through his extraordinary efforts to ensure the health of all children (and adults) on this earth. They have discovered their Life's Mission.

I only wish, they had told India’s Politicians a thing or two about being Honest, about being truly entrepreneurial and about encouraging Indian entrepreneurs. I don’t think they will listen. Yet, it would have been a thing to do.

Did Warren Buffet, the world’s Best Investor, the oracle of Omaha, conquer India’s hearts? Or, did he not? We have no way, as yet, of knowing. Despite, what Azim Premji did, in Gates’ style recently in India.We will wait for the results.

We are interested in Buffet’s  philanthropy – but we, the lower mortals are also more interested in his success and his mantras for success.

Warren Buffet is a highly predictable Investor – which is his greatest Forte. For that matter, the forte of any good investor. A lot has been written already about his investing style – and his SUCCESS STYLE.

Following his style, any genuine Investor can be an Oracle. There is nothing magical about predicting a company’s success  in the future – and your success if you invest in it. But, what is magical about it , is the rate of success that any individual investor can achieve with this simple formula.

Warren Buffet’s  simple system works magically. Over time, that is. You need Patience all the way. Then, it works magic.

He made India’s fund managers become Insurance Policy holders, before opening up himself to them all.

What does he think of – what  Indian Fund Managers (and Investors) want to know?

BUYING GOLD

Warren Buffett doesn't think of gold as an investment at all. He feels that gold, oil and art are investments that don't produce any income or product. So, investors who buy these are counting on them becoming more attractive to other people in the future. "That's a whole different game" compared to investing, says Mr. Buffett.

Buffett prefers to invest in productive assets like company stocks and farm land which produces crops, rather than on gold, oil or art.

BUYING RIGHT STOCKS

Buffett is a value Investor and relies on the principles of finding stocks which are cheap compared to their worth.

Buffett does not look at sectors for investment. That is not his style.

He looks at Individual companies. He looks for companies whose business he understands, and where he sees income and growth potential for the next five, 10 or 20 years.

The companies should generate good returns over the long term.

There could be irrational bubbles like the housing bubble in US in 2007. But, investors should not lose faith when that happened as long as they believed in their particular investment.

 He says – he had more ideas when he started investing and less of capital. Now, it was reverse. He had more capital and fewer ideas.

He says - he doesn't have to be a part of all successful companies – he looks for only a few good investing ideas.

HIS ROLE MODELS

Buffet cites his Father as his early Role model. Later, his Guru Benjamin Graham, the god father of value investing, was the greatest influence on him. 

He thinks very warmly of the Intelligent Investor written by Graham, which he read at age 19. He feels, this book, published in 1949 first, does not require any improvement.

ON INDIA

Indians are still on Gold and Land mostly – for providing assets for their future generations.

It will take some time before Investors in India got comfortable investing in stocks.

WHEN TO SELL A STOCK?

Selling a Stock, is a hard decision compared to buying a stock.

For this, and for other sound reasons, Buffett holds on to stocks for decades.

He says - "I don't feel like I have to grow rich in the next day or week."

Buffett feels - tracking stock prices daily is being "just foolish" for investors.

If they had bought a farm or an apartment, do they expect it to appreciate the next day? No. Why treat stocks differently?

About trading - He feels, frequent traders would "make more money if they don't trade as much."

Buffett says - he would sell a stock only if some better investment opportunity came about, or if something changed at the company, such as its management, which he didn't approve of.

BEING AN INTELLIGENT INVESTOR

Buffet feels - A good investor needs reasonable intelligence and a passion for investing.

You must have the ability to look at the facts of an investment and evaluate them without getting influenced by what other people think. "You can't get excited because other people are excited," says Mr. Buffett.

He says - we are susceptible to believe that something that has happened in recent past will continue to go on. So, every now and then, there's a craze to buy something even at very high, irrational prices. "Then all of a sudden, the music stops, and the investment comes crashing down.”

The key is to detach your self from such a craze. 

MARGIN OF SAFETY

Mr. Buffett stresses the need for keeping some cash as margin of safety. He himself usually keeps a few billion dollars as "margin of safety" at his company. It helps in tiding over any potential crises. That margin also allows to buy businesses which may become attractive during a downturn, he said.

He says, individuals must hold as much cash in their portfolio as would keep them comfortable during tough times.

"Some people might do something very foolish if they didn't have cash around," says Mr. Buffett. Usually people when under pressure, may sell even good stocks after losing a lot of value in them.

FIGHTING INFLATION

"Inflation is a very cruel tax," said Mr. Buffett, because it lowers the worth of your paper money.

He said one of the best ways to keep the value of your money growing is to invest in good businesses and companies which keep growing. That helps investors "maintain purchasing power no matter what happens to the currency," said Mr. Buffett.

He is not in favour of long-term bonds of Government, because both inflation and printing of new currency lowers the value of these investments.

As the only better way to beat inflation, he says - "Maximize your talent."

ON BLACK MONEY

Buffett feels - it is not a bad idea to use money unaccounted for  to help society. He said that a child who gets a vaccine that can save his or her life, won’t question the source of the money that paid for the vaccine. 

JOBS  VS  PHILANTHROPY

When asked what he thought of Mexican billionaire Carlos Slim’s view that it’s more important to create jobs than be Santa Claus. Mr. Buffett called it a “false contrast” saying you can do both at the same time. Santa Claus “employs 12 elves,” he said.

He added that when he or Mr. Gates give shares of their companies to charity, it doesn’t cost anybody a job.

ON INDIA’S AUTO SECTOR

On any likely interests in the auto sector in India, Buffett says he is a phone call away for "families that control an auto company and wish to see company grow over time."

Well. Warren Buffet is on call. Is India listening?

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FOOD INFLATION = 3 NEWS = GRAINS ROTTING IN GODOWNS = FOOD INFLATION AT 10.05% FOR W.E. MAR 12 AGAIN = FM HOPES INFLATION WILL COME DOWN

FOOD INFLATION

CREEPING UP AGAIN

(NEWS ITEMS)

There are three interesting, related News on Inflation in India.

First News is that Government is admitting that Food Grains are rotting ahead of Wheat harvest.

Second News is that, Food Inflation is again creeping higher to double digit figures in March,2011.

Third News is - a statement by the Finance Minister that it is possible to maintain inflation at moderate level.

It is now almost obvious that Food Inflation is not primarily due to shortages but is due to supply chain bottle necks. Can the state and central Governments not make all out efforts to (i) find out hoarding and hoarders (ii) ensure that there is no hoarding of food items contributing to food inflation and (iii) remove all types of supply chain bottlenecks from farmer to consumer.

This inflation is hurting both the producer and the consumer. And, unnecessarily. Hopefully, the Finance Minister’s Optimism will bear fruit in coming weeks.

Govt admits

Foodgrains Rotting

ahead of wheat harvest

March 24 : Amidst a warning that the country is sitting on a "grain bomb" due to prospects of record wheat output, the government today admitted to cases of food grains rotting and said enough storage facility must be created.

Referring to CPI(M) member Brinda Karat showing samples of rotten wheat and rice in the House, Finance Minister Pranab Mukherjee said in the Rajya Sabha, "I do admit."

He also agreed that the country needs to create a big storage capacity as the food grains production has grown fast in the wake of remunerative prices given to the farmers.

"It is the fact that we could not create surplus storage capacity to our requirement. I do admit... rotten wheat," he said, replying to a debate on the Finance Bill.

Earlier during the Zero Hour, Karat raised concern that the government was supplying rotten food grains to remote tribals areas.

Food inflation

in double digits

at 10.05 per cent

March 24:   Food inflation crept back into double digits at 10.05 per cent for the week ended March 12, breaking a three-week long downward spiral, as prices of vegetables, fruits and protein-based items increased.

Food inflation stood at 9.42 per cent in the previous week. The latest rise marks the first time in a fortnight that food inflation has gone above a single-digit figure.

The latest surge in prices of food items is likely to increase the worries of the Government and the RBI, which have termed inflation control as a big challenge.

During the week under review, prices of vegetables went up by 11.20 per cent year-on-year. While potatoes became 2.82 per cent more expensive, onions became dearer by 10.80 per cent on an annual basis.

Prices of fruits soared by 23.60 per cent year-on-year, whereas egg, meat and fish became dearer by 13.21 per cent.

During the week under review, milk became 6.63 per cent costlier on an annual basis.

Cereals were up 4.45 per cent, while rice and wheat became dearer by 2.75 per cent and 2.15 per cent, respectively.

Meanwhile, inflation of non-food articles was up by 26.78 per cent year-on-year. Mineral prices were up by 12.35 per cent during the week under review, while petrol became dearer by 23.14 per cent.

Headline inflation in the country has remained above 8 per cent since February, 2010. According to the latest data, overall inflation in February this year was 8.31 per cent.

The RBI in its quarterly review on March 17 revised the March-end inflation forecast upward to 8 per cent from 7 per cent projected earlier.

The apex bank has hiked its short-term lending and borrowing rates eight times since March last year to tame the inflationary pressure.

Possible to maintain

inflation

  

at moderate level

March 24  :   Finance Minister Pranab Mukherjee today said it would be possible to maintain inflation at a moderate level on account of measures taken by the government.

"...it would be possible for us to maintain the inflation at a reasonable level, moderate level," Mukherjee said, while replying to debate on the Finance Bill in Rajya Sabha.

He further said the Centre and the states have to work collectively to remove supply bottlenecks, a move to tame inflation.

"...some of them (members) have suggested for the amendment of the relevant state laws so that the new entrants can come into the regulated market.

We have taken up with the state governments and we shall have to collectively work to see how these supply bottlenecks can be removed," he added.

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