Venus Remedies LTD - RESULTS FOR - Q4 FY 12 - FY 2012 - SALES GROWING - PROFITS GROWING SLOWLY - IMPRESSIVE PATENTS LIST - FUTURE CAN BE EXCELLENT IF PATENTS RESULT IN GOOD MARKETING

Venus Remedies Limited

NSE Symbol        VENUSREM

Venus Remedies is one of the promising companies in the Pharma sector. Its Results for Q4 FY 12 and for FY 12 are analyzed below with the previous and corresponding periods :

Q4 FY 12 vs Q3 FY 12  vs Q4 FY 11

Net Sales in Q4 FY 12 stands at Rs.114.63 Cr; compared to Rs.95.42 Cr in Q3 FY 12 (up by 20.13%); and compared to Rs.96.46 Cr in Q4 FY 11 (Up by 18.83%).

Materials consumed in Q4 FY 12 stands at Rs.64.65 Cr; compared to Rs.52.86 Cr in Q3 FY 12 (up by 22.31%); and compared to Rs.57 Cr in Q4 FY 11 (Up by 13.41%).

Employee benefits in Q4 FY 12 stands at Rs.6.09 Cr; compared to Rs.6.19 Cr in Q3 FY 12 (down by -1.63%); and compared to Rs.5.66 Cr in Q4 FY 11 (Up by 7.47%).

Depreciation in Q4 FY 12 stands at Rs.2.19 Cr; compared to Rs.2.65 Cr in Q3 FY 12 (down by  -17.16%); and compared to Rs.2.53 Cr in Q4 FY 11 (down by   -13.26%). It is not clear why depreciation is coming down.

Other expenses in Q4 FY 12 stands at Rs.19.9 Cr; compared to Rs.16.81 Cr in Q3 FY 12 (up by 18.36%); and compared to Rs.14.01 Cr in Q4 FY 11 (Up by 42.06%).

Total expenses in Q4 FY 12 stands at Rs.92.84 Cr; compared to Rs.78.21 Cr in Q3 FY 12 (up by  18.71%); and compared to Rs.74.35 Cr in Q4 FY 11 (Up by 24.87%). The more than proportionate increase in total expenses compared to net Sales is mainly due to OTHER EXPENSES.

Profit  from operations in Q4 FY 12 stands at Rs.21.78 Cr; compared to Rs.17.21 Cr in Q3 FY 12 (up by 26.55%); and compared to Rs.22.11 Cr in Q4 FY 11 (down by -1.48%). Due to more than proportionate increase in Expenses, Profit from operations is down compared to the corresponding Quarter, though, it has increased handsomely over the preceding Qttr.

Finance costs in Q4 FY 12 stands at Rs.6.97 Cr; compared to Rs.6.68 Cr in Q3 FY 12 (up by 4.37%); and compared to Rs.5.29 Cr in Q4 FY 11 (Up by 31.86%).

Profit before tax in Q4 FY 12 stands at Rs.15.08 Cr; compared to Rs.        11.04 Cr in Q3 FY 12 (up by 36.55%); and compared to Rs.16.92 Cr in Q4 FY 11 (down by-10.91%). PBT also has fallen compared to corresponding Qtr due to higher expenses and Higher Finance costs; though, the increase is good compared to preceding Qtr.

Tax expense  in Q4 FY 12 stands at Rs.-0.48 Cr; compared to Rs.0.71 Cr in Q3 FY 12 (down by -168.27%); and compared to Rs.3.37 Cr in Q4 FY 11 (down by   -114.35%).

Net Profit in Q4 FY 12 stands at Rs.15.56 Cr; compared to Rs.10.33 Cr in Q3 FY 11 (Up 50.6%); and compared to Rs.13.55 Cr in Q4 FY 11 (Up 14.84%). Lower Tax Expense has pushed up the Net profit handsomely over previous and corresponding Qtrs both.

Basic EPS in Q4 FY 12 stands at Rs.15.97; compared to Rs.11.3 in Q3 FY 12;      and Rs.14.84 in Q4 FY 11.

Public holding (%)in Q4 FY 12 stands at 65.58%

FY 2012 vs FY 2011  vs FY 2010  vs FY 2009

Net Sales in FY 2012 (on standalone basis) stands at Rs.405.19 Cr; compared to Rs.357.27 Cr in FY 11 (Up by 13.41%); compared to Rs.311.93 Cr in FY 10 (Up by 29.90%); and compared to Rs.264.51 Cr in FY 09 (Up by    53.18%). Thus, Net Sales has been registering gradual and consistent increase over the last 3 years.

Consumption of Raw Materials in FY 2012 (on stand alone basis) stands at Rs.235.07 Cr; compared to Rs.    203.79 Cr in FY 11 (Up by 15.35%); compared to Rs.188.39 Cr in FY 10 (Up by 24.78%); and compared to Rs.166.79 Cr in FY 09 (Up by 40.94%).

Employees Cost  in FY 2012 stands at Rs.20.58 Cr; compared to Rs.20.88 Cr in FY 11 (down by -1.45%); compared to Rs.17.92 Cr in FY 10 (Up by 14.86%); and compared to Rs.11 Cr in FY 09 (Up by  87.09%).

Depreciation in FY 2012 stands at Rs.10.11 Cr; compared to Rs.8.44 Cr in FY 11 (Up by 19.91%); compared to Rs.11.69 Cr in FY 10 (down by       -13.46%); and compared to Rs.4.43 Cr in FY 09 (Up by 128.15%).

Other Expenditure in FY 2012 stands at Rs.67.99 Cr; compared to Rs.54.93 Cr in FY 11 (Up by 23.77%); compared to Rs.37.33 Cr in FY 10 (Up by        82.10%); and compared to Rs.32.16 Cr in FY 09 (Up by  111.38%).

Total Expenditure in FY 2012  stands at Rs.324.72 Cr; compared to Rs.284.13 Cr in FY 11 (Up by 14.28%); compared to Rs.249.14 Cr in FY 10 (Up by 30.34%); and compared to Rs.206.16 Cr in FY 09 (Up by 57.5%).

Profit from Operations in FY 2012 stands at Rs.80.85 Cr; compared to Rs.73.14 Cr in FY 11 (Up by 10.54%); compared to Rs.62.79 Cr in FY 10 (Up by    28.76%); and compared to Rs.58.35 Cr in FY 09 (Up by 38.56%). Total expenses has grown more than proportionately compared to total sales. Therefore, growth in Profit from operation has not been commensurate with Growth in Sales.

Interest in FY 2012 stands at Rs.25.7 Cr; compared to Rs.18.71 Cr in FY 11 (Up by 37.38%); compared to Rs.13.96 Cr in FY 10 (Up by 84.16%); and compared to Rs.9.34 Cr in FY 09 (Up by 175.29%). Interest Costs have grown  much more than proportionately.

Profit before tax in FY 2012 stands at Rs.55.15 Cr; compared to Rs.54.76 Cr in FY 11 (Up by 0.72%); compared to Rs.48.95 Cr in FY 10 (Up by 12.66%); and compared to Rs.49.26 Cr in FY 09 (Up by 11.97%). The Growth in Interest Costs has brought down the PBT considerably.

Tax Expense in FY 2012 stands at Rs.5.12 Cr; compared to Rs.7.28 Cr in FY 11 (down by -29.63%); compared to Rs.7.91 Cr in FY 10 (down by  -35.21%); and compared to Rs.3.73 Cr in FY 09 (Up by 37.5%).

Net Profit   in FY 2012 stands at Rs.50.03 Cr; compared to Rs.47.48 Cr in FY 11 (Up by 5.37%); compared to Rs.41.05 Cr in FY 10 (Up by  21.88%); and compared to Rs.45.53 Cr in FY 09 (Up by 9.88%). Overall, Net Profit growth over last 3 years has not been impressive.

Face Value is Rs.10. per share. Paid-up Equity stands at Rs.9.74 Cr

Reserves in FY 2012  stands at Rs.300.35 Cr; compared to Rs.233.27 Cr in FY 11 (Up by 28.76%); compared to Rs.171.47 Cr in FY 10 (Up by 75.16%); and compared to Rs.134.73 Cr in FY 09 (Up by 122.93%).

Public Shareholding at the end of FY 2012 stands at 65.58%.

Basic EPS in FY 2012 stands at Rs.54.43; compared to Rs.52.01 in FY 11; Rs.48.45 in FY 10; and Rs.53.86 in FY 09. Improvement in annual EPS over last 3 years has not been very impressive. Growth in Sales has been quite good.

PE RATIO : The 52 week high price  is Rs.276 and the 52 week low price is Rs.149 (on FV of Rs.10) and the Last Price is Rs.218.00. The last year Basic EPS was Rs.54.43. Hence, PE Ratio works out to 4.01.

The company has been successful in its research for drugs – and in securing Product Patents. Its future can be excellent – if only, it can succeed on the marketing front as well. But so far, success on marketing front has been SLOW. Given the nature of its Patents, if the marketing efforts succeed, the results could move to a much higher level.

At current PE Ratio, it appears to be a GOOD BUY for medium to long term investors.

ANNOUNCEMENTS TO NSE

22-06-2012          Date of Annual General Meeting is fixed as September 28, 2012. Register of Members and Share Transfer Books shall remain closed from September 24, 2012 to September 28, 2012 .

21-06-2012          Recommended a dividend of 30% i.e. Rs. 3/- per share for the financial year ended March 31, 2012.

12-06-2012 "Venus Remedies bags another patent grant from South Africa".

24-04-2012       "Innovative Solution for alleviating Cancer".         

10-04-2012       "Venus Remedies "Vancoplus®" gets Patent from Australia".

19-03-2012       "Venus's ACHNIL,BioSpectrum Product of the Year 2012".        

06-02-2012       "Venus Remedies to enter Japan market with patent approval for its novel research product 'Vancoplus'".

13-12-2011      "Emerging Company of the year 2011, Venus Remedies Limited".

07-12-2011    "Venus Remedies wins "India Manufacturing Excellence Award 2011".

15-11-2011    "Venus Remedies receives Market Authorisation for Meropenem in UK & New Zealand".

05-10-2011          "Pharmexcil felicitates Venus Remedies with "Patent Award" in Gold Category".

29-08-2011          "Venus Remedies' anti cancer product DOCETAXEL receives market authorisation in Europe".         

26-07-2011          recommended a dividend @ of 30% i.e. Rs. 3/- per share for the financial year ended March 31, 2011

11-07-2011        "Venus launches its patented research product "ACHNIL" in India".

24-05-2011     "Venus Remedies' 'ACHNIL', once-a-day painkiller, gets EU Patent".

11-05-2011          "Venus Remedies Limited wins Gold Medal for TROIS under DST-Lockheed Martin India Innovation Growth Program 2011".

26-04-2011          "Venus Remedies successfully completes Phase I & II Clinical Trials of TUMATREK (VRP1620), cancer detection molecule".

04-04-2011          "Venus Remedies Limited Wins QC-100 TQM (Total Quality Management) Award in Gold Category From Geneva".

What the company says :-

From Chairman’s Statement : we have filed for more than 341 patent applications and we received 75 product patent approvals (from international and domestic regulatory bodies).

Besides this, we have entered into the exclusive marketing of products in select geographies. We have also capitalised on significant industrial opportunities through agreements with reputed pharmaceutical companies.

As a result of all this, today we are enjoying global visibility and respect that I am sure will translate into enhanced returns.

Much of what we expect to achieve has been enshrined in our The Mission 2015:

• We wish to grow our team from 1,500 to 4,000 members.
• We wish to graduate every department into an independent profit centre.
• We wish to generate IPR-led wealth of US$1 billion.

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TATA MOTORS = Q4 FY12 & FY 2012 = VERY GOOD PERFORMANCE = CONS-NPT UP 46% FOR FY 12

TATA MOTORS

FY 2012 vs FY 2011 RESULTS

Consolidated Net Revenue grows by 36% to Rs 165,655 cr in FY 2011-12

Consolidated Profit grows 46% to Rs. 13,517 cr (Rs. 9,274 cr in FY 2010-11)

Consolidated Financial Results 

for the Quarter and Year ended March 31, 2012

Tata Motors has reported consolidated revenues (net of excise) of Rs.50,908 Cr for  Q4 of FY 2012, posting a growth of 44.3% over Rs. 35,287 Cr in Q4 of FY 2011. The Consolidated Profit before Exceptional item and Tax was Rs.4,596 Cr,  a growth of 68.1% over Rs. 2,734 Cr in Q4 FY 2011. The Consolidated Profit before Tax (PBT) for Q4 FY 2012 was Rs.4,424 Cr, compared to Rs. 2,911 Cr for Q4 FY 2011. The Consolidated Profit (after tax and post minority interest and profit in respect of associate companies) for the quarter was Rs.6,234 Cr, as compared to Rs.2,638 Cr in Q4 FY 2011.

The consolidated revenue (net of excise) for FY 2011-12, was Rs. 165,655 Cr posting a growth of 35.6% over Rs. 122,128 Cr in FY 2010-11. The Consolidated Profit before Exceptional item and Tax was Rs 14,366 Cr, a growth of 40.8% over Rs 10,206 Cr in FY 2011. The Consolidated Profit before Tax (PBT) for the year was Rs. 13,534 Cr, compared to Rs. 10,437 Cr for FY 2011. The Consolidated Profit for the period (after tax and post minority interest and profit in respect of associate companies) was Rs.13,517 Cr, as compared to Rs. 9,274 Cr in FY 2011.

Stand-alone Financial Results

for the Quarter and Year ended March 31, 2012

standalone revenues (net of excise) for the Q 4 FY 2012 of Rs. 16,391 Cr represented a growth of 14.4% over Rs. 14,326 Cr in Q4 FY 2011. Growth in volumes, and reduction in marketing costs resulted in an improvement in Operating margins to 9.5% for the Q4 FY 2012 over 8.9% for Q4 FY 2011. The Operating Profit (EBITDA) stood at Rs. 1,561 Cr in the quarter, a growth of 22.1% over Rs. 1,278 Cr in Q4 FY 2011.

The PBT for the quarter is Rs. 652 Cr as compared to Rs. 591 Cr in Q4 FY n2011 and the PAT for the quarter is Rs. 565 Cr as compared to Rs. 573 Cr in Q4 FY 2011.

The standalone revenues (net of excise) for FY 2011-12, at Rs. 54,307 Cr posted a growth of 15.3% over Rs. 47,088 Cr in FY 2010-11. Profit before Tax (PBT) for FY 2011-12 was Rs. 1,341 Cr, compared to Rs. 2,197 Cr for FY 10-11. Profit After Tax for FY 2011-12 was Rs. 1,242 Cr, as compared to Rs.1,812 Cr in FY 10-11.

The Standalone Profit Before Tax and Profit After Tax for FY 2011-12 were impacted by Exceptional items of Rs 585 Cr (Rs. 147 Cr in FY 2010-11) on account of exchange loss (net) including on revaluation of foreign currency borrowings, deposits and loans arising from the depreciation of Indian Rupee (INR) and provision made for certain investments in 100% subsidiary Tata Hispano Motors Carrocera SA, Spain arising from continuous underperformance impacted by challenging market conditions.

Tata Motors' sales (including exports) of commercial and passenger vehicles for FY 2011-12, stood at 926,353 units, representing a growth of 10.7 % as compared to FY 2011.

In the domestic market, the Company's commercial vehicles sales for the Quarter ended March 31, 2012, stood at 155,672 units, an increase of 16.2% over Q4 FY 2011. The commercial vehicles sales during FY 2011-12 increased by 15.7 % to 530,204 units, as compared to FY 2011. The Company's market share in commercial vehicles was 59.4% for FY 2011-12.

Passenger vehicles, including Fiat and Jaguar and Land Rover vehicles distributed in India, grew by 18.1% to 112,470 units in domestic market for the Quarter ended March 31, 2012, as compared to Q4 FY 2011. Sales for FY 2011-12 grew by 4.0% to 333,044 units, as compared to FY 2010-11. Focused marketing initiatives and network actions have positively influenced sales. The market share in passenger vehicles stood at 13.1% for FY 2011-12 largely driven by sales in the recent quarters. The market share in Passenger vehicles for Q4 FY12 stood at 14.2%.

Jaguar Land Rover PLC

 (figures as per IFRS)

Jaguar Land Rover Sales for the Q4 FY 2012, grew 48.2% to 98,021 units. Of this, the Jaguar volumes for the period stood at 14,118 units and Land Rover volumes stood at 83,903 units. The recently launched new products continue to receive positive response. The newly launched Range Rover Evoque, clocked approximately 60,217 wholesale units till March 2012. Sales from the China region grew strongly and comprised 19.0% of total volumes for the Quarter ended March 31, 2012 as against 12.8% for the corresponding period last year.

Jaguar Land Rover sales for FY 2011-12, stood at 314,433 units, the highest ever, representing a growth of 29.1% as compared to FY 2010-11 supported by new product actions and strong demand in China and other developing markets. The Jaguar volumes for the period stood at 54,039 units and Land Rover volumes stood at 260,394 units.

Revenues for the Q4 FY 2012, of GBP 4,144 million represented a growth of 51.5% over GBP 2,735 million in Q4 FY 2011. Operating margins for the Q4 2012, stood at 14.6% and an Operating Profit (EBITDA) of GBP 605 million in the quarter, a growth of 61.5% over GBP 375 million in Q4 FY 2011. Continued strong revenue and profit performance was supported by volume growth, market mix, product mix and favourable exchange rates. The PBT for the quarter is GBP 530 million (GBP 299 million in the corresponding quarter last year) and the PAT for the quarter is GBP 696 million (GBP 262 million in the corresponding quarter last year). The PAT includes an amount of GBP 217 million (additional GBP 171 million through Reserves) of previously unrecognised deferred tax assets, due to uncertainty about future recoverability which have now been recognised due to sustained improvement in business performance and certainty of future profitability outlook.

The revenues for FY 2011-12, at GBP 13,512 million represented a growth of 36.9% over GBP 9,871 million in the corresponding period last year. Operating margins for the FY 2011-12, stood at 15.0% and an Operating Profit (EBITDA) of GBP 2,027 million, a growth of 35.0% over GBP 1,502 million in the corresponding period last year. The Profit before Tax (PBT) for FY 2011-12 is GBP 1,507 million as compared to GBP 1,115 million for FY 10-11. The Profit After Tax for FY 2011-12 is GBP 1,481 million as compared to GBP 1,036 million in FY 10-11.

In March 2012, JLR successfully raised bonds of £500 million with a coupon of 8.25% and tenor of 8 years. The full proceeds were retained at JLR for future use in the company's business. This was an opportunistic fund raising which enabled JLR reinforce its market acceptance and demonstrated the confidence of the investors while continuing to support steps taken towards strengthening capital structure and extending the debt maturity profile.

In March 2012, JLR announced that it has signed a joint venture agreement with Chery Automobile Company Ltd to build vehicles for the Chinese market which is currently under the process for regulatory approvals by the Chinese authorities.

In March 2012, JLR approved the consolidation businesses of Jaguar Cars Limited and Land Rover into one legal entity to be named Jaguar Land Rover Limited. The consolidation is expected to become effective later this year.

Tata Daewoo

Tata Daewoo Commercial Vehicles Co. Ltd. registered net revenues of KRW. 767 billion, and recorded a Net profit of KRW 3.6 billion in FY 2011-12.

Tata Motors Finance

Tata Motors Finance Ltd, the Company's captive financing subsidiary, registered net revenues of Rs. 2,018 Cr and reported a Profit After Tax of Rs. 240 Cr in FY 2011-12.

Dividend : Has recommended dividend of Rs 4/- per Ordinary Share of Rs 2/- each and Rs 4.10 per 'A' Ordinary Shares of Rs 2/- each for FY 2011-12 (previous year Rs 20/- per Ordinary Share of Rs 10/- each and Rs 20.50 per 'A' Ordinary Shares of Rs 10/- each).

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News&Views Today=28th,May'12= Protect & Support India's SOFTWARE INDUSTRY= Medicine For Patient, Not for Pharma Co= 4LPG Cylinders P.A.= JK CEMENT Does well = Air India – GOPINATH'S Sound Suggestions

NEWS & VIEWS TODAY

28^th,MAY,2012

PROTECTING & SUPPORTING INDIA'S SOFTWARE INDUSTRY

MEDICINE FOR PATIENT - NOT FOR PHARMA CO

ONLY FOUR LPG SUBSIDISED CYLINDERS IN A YEAR

JK CEMENT DOES WELL

AIR INDIA – CAPTAIN GOPINATH'S SOUND SUGGESTIONS

1.    NEWS :-  The Central Board of Direct Taxes had taken the view that deputing software professionals to the project-site for software creation was in fact ‘body shopping’ and not software exports. It has now called for comments on this from its offices and is expected to issue some CLARIFICATIONS in the matter.

VIEWS : Deputing a software professional abroad for on-site software creation is much, much different from deputing a driver or Doctor abroad for work. The software Professional goes abroad with special skills, for CREATING SOFTWARE on site – which of course, he could do from the Indian office as well some times. But, sometimes, he has to go to the project site and create the software there itself. When he comes back, the software he has CREATED is very much available for all to see – and it powers the projects for a long time to come. 

On the other hand, when a Driver or Doctor goes abroad, offers his skills and comes back, there is nothing abroad, to show that he ever existed there. His work is  purely temporary, for the time being, and yes, it is a sort of Body-shopping (or skill-shopping).

On the other hand, A software professional can export software from his Office or sometimes create it on the project site only -  and that very much is SOFTWARE EXPORT, as much as a software crated in India and sent by electronic or physical means abroad.

To draw an extravagant parallel – suppose TATAs export CARS but someone from TATAs goes along with the CARS and sells them abroad, is it selling cars or is it BODY SHOPPING? 

SOFTWARE is an invisible good. It is much like a CKD Unit, carried in the head of the software professional which is built up at the project site. 

By no stretch of imagination can it be called BODYSHOPPING. There is a tangible good  which he creates and sells at the site – and that tangible good is the SOFTWARE he builds at the site. He is not a physical worker like a driver, who is offering a purely temporary service.

SOFTWARE EXPORT is the forte of India – and CBDT and finance Ministry must support this Industry in all possible ways – even relaxing some of their present positions. On the other hand, calling SOFTWARE CREATION ON SITE as Body shopping – simply because the Income tax officer is not able to see  A PHYSICAL GOOD, where a SOFTWARE GOOD does really exist – is obviously incorrect . Don’t see a floppy disk or Hard disk as the only SOFTWARE going from India aboard. Creating the same on-site  is ,without a shadow of doubt, SOFTWARE EXPORT.

2.    PRIZE vs PATENT : There is an excellent suggestion from Dr.Joseph Stiglitz, Nobel laureate, reproduced in Economic times on 21^st and commented editorially today – that the world must shift from a PATENTS regime  TO  a PRIZE based system for new drugs. It is a practical suggestion. The Editorial says, The Bill and Melinda foundation is already successfully experimenting with this Model. Innovators must be rewarded handsomely for their innovation / discovery – and they have to give up their right on their innovation / discovery.

VIEWS : In my view - new Drug discoveries are painfully few and far between today. We can name scores of widely prevalent diseases – for which there are no complete cures. Sometimes, we feel, that there is no real support for finding complete cures – but only for just MANAGING the disease life long, so that, the patient becomes a lifelong source of revenue for Pharma Companies. 

The Pharma Companies’ costly Medicine regime – especially makes us suspect that this is so. It seems that they do not want CHEPAER MEDICINES at all. Neither they make cheaper drugs which are obviously possible – nor do they allow others to make such cheaper drugs. This is simply unacceptable that Patients are allowed to suffer – when cheaper drugs are possible.

If there is a more effective innovation by some scientist, a Pharma company claims Patent on it – and produces it – at an astronomical price (NOT ASTRONOMICAL COST). But, if some other company produces the same drug and is able to sell it at a small fraction of the Price, the Patent company blocks the production of drug at LOW COST & PRICE. This makes the whole system ridiculous. Drugs for whom ? Drugs at what cost? Is it for all suffering Patients or for creating Profits for the Drug Company?

In this context, Pharma Scientists all over the world must gladly embrace the suggestion of Prof. Stiglitz – for accepting a GOOD PRIZE (MONEY ESPECIALLY) AND A CITATION rather than selling it to a Pharma Company. Governments must come forward to institute such Prizes – and such prizes must be much, much more than what a Pharma company will offer – and spur the scientist into further innovations. In India, the encouragement that a scientist or Scientific Lab receives is very Poor at present – and this situation must change quickly and drastically.

There is especially GREAT NEED to promote indigenous research into both ALLOPATHIC CURES and AYURVEDIC CURES – especially the latter. This writer is  a great beneficiary of Ayurvedic Cures and is convinced that if this indigenous science promoted well -  India will achieve Great Breakthroughs in ensuring the health of people across the world.

3.    ONLY FOUR LPG SUBSIDISED CYLINDERS IN A YEAR :- This is a big negative step from the Government. It is expected to be implemented shortly.  

VIEWS : This step is similar to the Planning commission’s BPL income level of Rs.24( or so). Every one, except Planning commission, knows that - no one can live at that Income level. Planning Commission received a lot of flak for it. 

The LPG restriction is worse than that. I would request the Government to show ONE SINGLE FAMILY BELOW POVERTY LINE or ABOVE POVERTY LINE – which can do their cooking with 4 cylinders in a year. By all means, block the LPG use from uses other than cooking, like water heaters etc. If this is taken care of - no home can ever misuse LPG cylinders for any purpose other than cooking. But, if Government does not supply cylinders, or supplies them short or at huge cost – the suffering will be felt by  99% of the people presently using them. 

Government on the one side is using funds on schemes like NREGS – which is almost wholly non-productive. On the other side, it is now curtailing the most essential LPG Cylinders supply. LPG is as important as rice and wheat for the people’s food needs. 

For a small family of three, for the most essential food needs alone, a cylinder is needed once in 25 days. Government cannot curtail this supply in cities, urban and suburban areas. Villages have firewood availability – which is not there in non-rural areas. But, Government is extending LPG to villages and luring them into it – even while it is unable to supply it in non-rural areas efficiently.

12-14 Cylinders per a small family per annum is the absolute minimum needed. Please do make all your investigations and enquiries and research. But, do not curtail LPG supplies and do not make the cost astronomical.

4.    J.K.CEMENT LTD : JK CEMENT has done well in both Q4 and FY 2012.Total Income from operations stands at Rs.809.40 Cr in Q4 FY 12 and Rs.2094.35 Cr in FY 2012, against Rs.672,46 Cr in Q4 FY 2011; and Rs.2094.44 cr in FY 2011. Net profit is Rs.80.35 Cr in Q4 FY 12; and Rs.174.57  Cr in FY 2012 compared to Rs.53.56 Cr in Q4 FY 11 and Rs.62.62 Cr in FY 2011. The Basic EPS  stands at Rs.11.49 in Q4 FY 12 and Rs.24.97 Cr in FY 2012 compared to Rs.7.66 in Q4 FY 11 and Rs.8.95 in FY 2011.The company has recommended a dividend of 50% (Rs.5 per share) for FY 12.

5.    AIR INDIA :-Today’s ET has an article by Captain G.R.Gopinath on “Air India – easy to fix if there’s Political will”.

VIEWS : An excellent analysis on Air India. But, like in all other cases, Government needs a clear vision of what it wants of the Airlines Industry. I feel, Like  Sri Gopinath, that Government must plan to carry 20% of Indian Population by Airlines before a decade. Whatever it takes to achieve this – that must be done.

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