Friday, June 1, 2012


31st, MAY, 2012





1.     NEWS :EMIRATES, Dubai’s flagship Carrier, which operates 185 flights per week has market share of around 20% of total outbound traffic from India. It is understood that India is its largest Market in its Global network

VIEWS : Are the Government of India,  the Air India Management and the PILOTS serious in resurrecting the National Carrier, Air India, or would soon be putting it in the Hall of Shame of FAILED VENTURES of Independent India.

One wonders – Are we now, really serious in anything that is seriously affecting the Nation’s Growth and Prestige? Is it so difficult to put one single company like Air India back on Rails, (that is- in Air)? Why not hire an Independent World Class specialist to independently examine and advise on ALL MEASURES needed to resurrect Air India – not only Air India, I would suggest, include King Fisher too, and if Jet Airlines wants it, include that too?

It just can’t be that all the three TOP INDIAN AIRLINES make huge losses – and there are NO COMMON REASONS for their FAILURE. There are. At least, that is a strong possibility.

And, Before the Air lines Industry in India turns totally sick, it is necessary that Government gets, INDEPENDENT, FIRM, UNBIASED, FACTUAL opinion on what ails all of them – and how India must bring them out. We don’t have a choice really. The specialist, expert opinion must be implemented by another INDEPENDENT, HIGH POWERED, specialist body for Air India. Both KFA and Jet have Huge loans from PSBs – and PSBs must nominate the above specialist body’s representatives on the Boards of KFA and Jet Airlines and get their woes also examined and find sure shot remedies. The private Airlines  cannot sink along with the Public Money lent to them. And, I strongly feel, all these Airlines can do well – if only – some thing really required is correctly attended to.

In my opinion, if in any Industry sector, the top two or three firms are making huge losses – even if they are private Corporates, the Government MUST ACT FAST, to take a careful look at their problems and help them, screen them and ensure that they do not sink into oblivion – taking along with them huge moneys from the banking sector and other equity/debt holders.

Finally, don’t we think that India does need a Good, strong National Air Carrier, which stands as the pride of the Nation. Are there 2 opinions about it?

2.   Is policy paralysis finally on the way out : Government has set up a panel under C.Rangarajan,  Chairman of PM’s Economic Advisory council, to suggest ways to minimize Government’s monitoring of expenditure by Oil Companies. It has also declared its intention to clear forest clearances for Electricity/coal mines fast.

VIEW : Who said the Government can’t come out of its policy/action paralysis? It can, if it chooses to. These are welcome signs and there seem to be more on the way. The action on these seems to be occurring  FAST.

3.    NEWS : FM assures that LOCALLY MADE SOFTWARE will NOT be subjected to tax deduction at Multiple levels. “I have approved issuance of a circular to avoid Multi level TDS on software u/s194J on the advice of NASSCOM” – said the Finance Minister

VIEW : The Finance Minister’s assurance is really heartwarming – not just for the relief it gives to all Indian software manufacturers – but because it was a considered response to NSSCOM’s  request. This is perhaps another instance that – finally, the policy paralysis is perhaps moving out of this Government. I feel (and suggest that) the Finance Minister must also look at the Body shopping Interpretation controversy (from the IT Department)-  and set the matters right in that instance too, declaring the creation of software at client site rightfully as SOFTWARE EXPORTS. We must not be killing our own software Industry, which is one of the largest employment generators (or probably the No.1)  in India right now. Government is any way getting huge revenues from the software sector, in many, many ways – and it must ensure this sector’s Health at all costs – against competitors like China.

4.    JAI HO, HARYANA :Some articles in news papers are really revelations and heartwarming at that. The article on Page 24 of Economic Times is just that. It is a MUST-READ  for every state Government- on how to promote SPORTS in their states. I always wondered how countries like US, Japan and China and even South Korea promote sports so well in their Countries. If anyone is willing to see and listen – Haryana is showing the way ( in a effective, reasonable way). 

Haryana dominated the Indian Medals tally in the 2010 Commonwealth Games. 15 of the 38 Golds (40%) came from its Athletes. And, Haryana has just 2% of India’s population. 

Haryana promises every sportsperson who wins a National/International medal an automatic cash reward and a Government Job. Each student is encouraged to take up at least one sport. There are arrangements to spot talent and give them training and scholarships. Now - Boxing facilities are really mushrooming in the state. Within a short time of doing well in any sport, every sports person does get good money  and lands a good Position in this State. If you get a medal in Olympics, you can be a Dy.SP. There are so many promising Boxers now from the state that  in 2008 August, they could shatter the earlier record of India in such games. Well done, Haryana! It is the Great mood that the leadership sets, that counts, than anything else. Haryana can move up further; It must see the examples of US, China, Korea and Japan; and go the whole hog – in promoting sports. Of course, Haryana can do Better. Much, much better. And hopefully, it will. Are other states listening?
5.    GAIL : consolidated Results for FY 2012: Net Sales of Rs. 44057.82 Cr against Rs. 35106.65 Cr for FY 2011. Net Profit of Rs. 4443.61 Cr against Rs. 4020.97 Cr for FY 2011.Standalone Results for FY 2012 :Net Sales of Rs. 40280.74 Cr against Rs. 32458.64 Cr for FY 2011. Net Profit of Rs. 3653.84 Cr against Rs. 3561.13 Cr for FY 2011.

Net Sales for Q4 is Rs.10454.56 cr (Rs.8093.61 cr in Q4 FY 11). Total Expenses has shot up from Rs.7786.40 cr in Q4 FY 11 to Rs.9936.02 cr in Q4 FY 12. Profit from operations is down at Rs.553.58 cr (against Rs.1120.53 cr in Q4 FY 11). Net Profit after Tax is Rs.483.34 cr down from Rs.783.07 cr in Q4 FY 11. EPS stands at Rs.3.81 against Rs.6.17  in Q4 FY 11. Basic EPS on consolidated Basis for FY 2012 stands at 35.03 against Rs.31.70 in FY 2011. Total Dividend for FY 12 is Rs.8.70 (Rs.5.70 + Rs.3) on FV of Rs.10. The lower profit in Q4 FY 12 is mainly due to provision of Rs.335.48 cr for LPG under-recoveries additionally towards short provision in Q3 FY 12 – against NIL in Q4 FY 2011.

VIEWS : GAIL is entering into various Petrochemical/Gas related activities. While LPG subsidizing will continue – GAIL is still Quite profitable. Unlike Oil Marketing Companies – ONGC and GAIL can scale much better heights in the future. Of these two, ONGC is in a more lucrative and more profitable segment – at the moment. But, GAIL can seize many opportunities now.

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