Kale Q4 consolidated revenues at Rs48.58 crore

For the quarter ended 31 March 2011, Kale has recorded consolidated revenues of Rs48.58 crore compared to Rs46.42 crore for the corresponding quarter of the previous year

Kale Consultants, the leading solutions provider to the airline and travel industry, has recorded consolidated revenues for the 12 months ended 31 March 2011 at Rs177.29 crore compared to Rs165.92 crore during the previous year. For the quarter ended 31 March 2011, Kale has recorded consolidated revenues of Rs48.58 crore compared to Rs46.42 crore for the corresponding quarter of the previous year. The consolidated PAT stood at Rs5 crore compared to Rs6.42 crore during the corresponding quarter of the previous year.

Standalone revenues stood at Rs137.30 crore for the 12 months ended March 2011, compared to Rs126.73 crore for the corresponding period of the previous year. Net profit stood at Rs13.1 crore compared to Rs19.14 crore in the previous year. For the quarter ended March 2011, Kale recorded revenues of Rs37.1 crore compared to Rs382.14 million during the previous year. Net profit (before prior period item) for the quarter ended 31 March 2011 stood at Rs22 crore compared to Rs6.65 crore in the previous year.

The company has changed its financial year end from 31 March 2011 to 30 June 2011 as a result of which the current financial year will be for a period of fifteen months i.e from 1 April 2010 to 30 June 2011.

On Friday, Kale Consultants ended 1.90% down at Rs87.80 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.07% to 18,531.28.

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Nakoda Q1 PAT up by 44% to Rs10.64 crore

Nakoda saw an increase in revenue by a whopping 53.92% to Rs450.88 crore for the March 2011 quarter

Nakoda, one of the largest manufacturers of the fully drawn yarn, reported a robust growth in revenue and profits for the quarter ended 31 March 2011.

The company saw an increase in revenue by a whopping 53.92% from Rs292.93 crore to Rs450.88 crore during the same period for the last fiscal. The profit after tax (PAT) for the quarter ended 31 March 2011 stood at Rs10.64 crore, resulting into an increase of 43.78% against Rs7.40 crore in the corresponding period of the last fiscal. Cash profits rose by 82.88% from Rs9.17 crore to Rs16.77 crore during the quarter.

Income from the manufacturing segment rose by 90.18% to Rs234.46 crore from Rs123.28 crore for the quarter under consideration. In the trading segment, the sales touched Rs216.42 crore from Rs169.65 crore, an increase of 27.57%.

The Board also approved the audited accounts for the year ended on 31 December 2010. The company achieved total turnover of Rs1,338.89 crore for the year 2010 and earned net profit of Rs33.15 crore.

The Board also recommended a dividend of 5% on the expanded capital after 1:1 Bonus and GDR underlying shares allotted on 26 November 2010.

On Friday, Nakoda ended 0.25% down at Rs11.97 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.07% to 18,531.28.

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It’s raining gold funds: Religare, SBI and HDFC jump into the fray now

Gold is hovering around its highs, so fund managers now are exhibiting their herd mentality.  When gold futures are under pressure, is this the right time to buy a gold fund?

After the Reliance, Kotak and Quantum gold savings funds, Religare, SBI and HDFC have also launched an identical product.

Indians believe that gold (like real estate) always increases in price. This is true. But let that not lead you to blind belief. If you don't know by how much gold has gone up over the past 20 years or why, it would really be blind belief, if you assume that the yellow metal always goes up.

The first thing to understand about gold is that you cannot value it logically. This is because nobody pays you any income for your gold. If you invest in real estate you can get rent. If you put your money in a fixed deposit, you get interest. If you buy stocks, you may get a dividend. Anything that produces a stream of cash can be valued through P/E ratios, yields and capitalisation rates and be compared over time to determine whether it is cheap or expensive. Gold produces no cash flow. There is no analytical way to value an asset that doesn't produce cash flow. In fact, it inflicts a negative cash flow-for storing it. Anything that cannot be valued is valuable only to the extent of the price the next buyer will pay for it. That makes it a speculative product, not an investment product.

Similar to the Reliance, Kotak and Quantum funds, there are another three FoF (Funds-of-Funds) scheme filed by Religare, SBI and HDFC. All three are gold ETFs (exchange traded funds)-based FoF schemes which will invest only in their respective gold ETFs. The funds will put 95%-100% in their respective ETFs and 0%-5% in debt & money-market instruments.

What Reliance had essentially done is converted an ETF into a mutual fund product. This means Reliance can also offer it as a Systematic Investment Plan (SIP) and the same had been done by Kotak and Quantum. Now HDFC, SBI and Religare have followed suit. Reliance Gold Savings Fund had been pitched as a good option for small investors who want to invest in gold. It has opened the doors for non-demat account holders as it provides a facility to invest through the online medium and also through the physical application mode.

Those who were not able to invest in gold ETFs since they did not have a demat account can now participate by investing in this fund. The same procedure was followed by Kotak and Quantum. And now HDFC and Religare have also joined the rally. However, SBI has not mentioned anything related to requirement of a demat account (for investment) in their scheme offer document.

However, the issue is whether the product is truly beneficial for those for whom it is meant for. The gold fund is aimed at those who do not even have a demat account.

Moneylife had mentioned this when the Reliance gold savings fund was launched: "Clearly, those who do not even have a demat account don't even know about the risks of equity or are risk-averse enough not to dabble in equity shares. Most investors like them have preferred a safe investment, such as fixed deposits."

At a time when gold is making new highs, asset managers and brokers are queuing up to launch gold saving schemes which will enable retail investors (even those without demat accounts and through SIPs) to park their money in gold ETFs. First, Reliance and then Kotak and Quantum tried to reach a common class of people who did not have demat accounts and were interested in investing in gold. It targeted the middle class which represents a majority of the population. Obviously, other fund houses do not want to fall behind. So Religare, SBI and HDFC MF have joined the rally… and there will be many more to come.

As pointed out by Moneylife in February, "The price of gold has gone up six times in the last 10 years. Any asset that has gone up so much for so long a time carries a huge risk of a crash. How will a risk-averse investor react to an asset that can crash suddenly?"

And as we have said time and again that another issue with these kinds of funds is its cost structure. The entry load is nil and exit load is 2% if the investor exits within six months; 1% if the investor exits after six months but within 1 year; and nil after one year for both the funds (HDFC and Religare).

However, since these are FoF schemes, there might be ETF expense charges that one needs to pay. As per SEBI (the Securities and Exchange Board of India) guidelines, an FoF can either charge 0.75% of total expenses or it can charge a maximum of 2.5% of total expenses-including the weighted average total expenses of its underlying schemes-and not more than 0.75% as management fee from investors.

Though the Religare Gold Fund will charge 0.75% annually, it will cap the overall cost (FoF+ETF charges) at 1.50%. While the HDFC and SBI Gold Fund will charge 0.75% annually, it will cap the overall cost (FoF+ETF charges) at 2.50%. Even then, a 1.50% and 2.50% cost is pretty significant.

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COMMENTS

jimmy RICH

6 years ago

DONT make combo of gold n its crashes....we know very well any surging commodity has a fall,,,bt the thng which matters to investor is that,hw much it resists it...N my dear ppl,it has shown ironic resistance from last 450years....

Nagesh K

6 years ago

Gold may reach further highs due to uncertainty of Middle East and US dollar not looking so strong. So it can be used as a hedge. It is not totally true that is is a pure marketing strategy.
But the real thing is are there enough Gold ETF's in the market to invest in.

REPLY

girish

In Reply to Nagesh K 6 years ago

please read
http://www.moneylife.in/article/gold-all...

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