Large-cap companies as per Moneylife’s classification reported a 11% growth in net profits for the June quarter but enjoyed a 68% jump in valuation
Companies classified by Moneylife as large-cap (market-cap between Rs2,000 crore and Rs10,000 crore) reported a 9% growth in aggregate sales and a 11% growth in net profit for the quarter ended June 2014 compared to the quarter ended June 2013. As many as 140 companies, of the 241 large-cap companies, reported an increase in net profit.
Interestingly, the market-cap of these 241 companies shot up by a 37% during the quarter. From the end of the June quarter till date, the aggregate market-cap has fallen by -1.67%.
Moneylife tracks a database of 1,294 companies, of which 1,222 companies have declared their results for the June 2014 quarter. Of these 1,222 companies, 241 are large-caps. The aggregate revenues of the large-caps form a share of 16% of the total revenues of the 1,222 companies. The aggregate net-profits of the large-caps form 11.63% of the total net profits.
Among the top performers from the large-cap sample, PTC India, Atul, PI Industries, Kajaria Ceramics and VST Industries have reported an average of 23% growth in sales for the June 2014 quarter, compared to the same period last year. The net profits of these companies have grown by an average of 51%. Companies such as Bhushan Steel, Dish TV India, Fortis Healthcare, Hathway Cable & Datacom and Indian Hotels, reported a profit for the June quarter last year, but have reported a net loss in the latest quarter. These companies have reported a drop in operating profits as well.
As many as 152 large-caps have reported a growth in operating profit and 126 companies have reported a higher operating profit margin. However, the aggregate operating profit margins were marginally lower at 14.51% for the June 2014 quarter, compared to a margin of 14.94% in June 2013. Aggregate net profit margins increased marginally to 5.38% in the quarter ended June 2014 from 5.28% in the quarter ended June 2013.
Valuations of the 241 large-caps measured by market-cap to operating profit (latest quarter annualised) increased by 68.47% to 8.5 times on 18 August 2014 compared to a year ago, when valuations were at five times. The market-cap to net profit increased by 60.85% to 22.9 times from 14.2 times over the same one-year period. Out of the 241 companies as many as 79% or 190 companies are quoting a higher valuation compared to a year ago.
A Committee comprising PM and the Leader of Opposition, recommends CICs names. Since, at present there is no Leader of Opposition, a recently-retired CIC has not been replaced. How to get around it?
There is some discussion about the fact that the replacement for the Chief Information Commissioner who retired last week cannot be appointed since the Leader of Opposition is missing. This is flawed since Section 12 (3) of the RTI Act clearly says :
(Shailesh Gandhi served as Central Information Commissioner under the RTI Act, 2005, during 18 September 2008 to 6 July 2012. He is a graduate in Civil Engineering from IIT-Bombay. Before becoming a full time RTI activist in 2003, he sold his packaging business. In 2008, he was conferred the Nani Palkhivala Memorial Award for civil liberties.)
Medical ethics in this country is non-existent. Corruption is rampant and the MCI, which is meant to control unhealthy practices closes its eyes to this menace. And Dr Harsh Vardhan, the union minister for health & family welfare seems has shown the rare honesty to admit it
“Fraud and falsehood only dread examination. Truth invites it.” -Samuel Johnson
Dear Dr Harsh Vardhan,
I was thrilled to read your measured opinion on our institutions that are supposed to be the guardians of medical education and research. No minister in the past had the honesty to admit that both the Medical Council of India (MCI) and the drug regulatory authority are not just corrupt but are “dens of corruption and snake pits full of poisonous snakes”. These statements can come only from an authentic human being like you.
Honest and humane doctor that you are, you have understood the situation correctly and had the courage to call a spade spade. May God be with you to clean up their stables with help from PM Narendra Modi. Someday this had to happen and the sooner it does the better for the poor patients and students.
There is no point in blaming individuals. Anyone else in that position would do the same thing with the corrupt system that is in place. Corruption can never be one sided. Unless there are dishonest people wanting to get illegal things done by these licensing bodies as I might like to call them there will be their match in these bodies. I remember the time when Dr CP Thakur wanted to clean up the system and had asked me to get into MCI up. I pleaded with him that one man cannot do anything. The people in charge moved heaven and earth to see that I did not get in there. Little did they realise that I had declined the offer in the first place! You might fault me for running away from the responsibility and for not standing up to their might. In our so called democratic set up it is the numbers that count. Once, a God's good man, who was the Vice Chairman, contested against the mighty forces and poor man got probably only his vote; 99% voted against him.
Even the Supreme Court failed in their effort. They appointed an army General but nothing happened and in the end as the vested interests won. What we need are very effective new laws that govern these watchdog bodies. Dental Council of India (DCI) and All India Council for Technical Education (AICTE) are no exceptions. In fact, they are competing with one another to see who gets the first rank in dubious practices. But the problem will be to get honest authentic men and women to man these bodies.
The present law makes corruption easy with half the number of members being political appointees from States and the rest medical politicians whose only aim is to get into these bodies to “control" them for money and power. They have very little idea about medical education or even research. I think as a stop gap arrangement, the government could call for applicants for the job with minimum qualification and their details should be in public domain for at least six months before they are selected to be in these bodies. In the meantime, well-meaning citizens would put forward their opinions about the candidates.
May be many a time adverse comments are posted to prevent good people from getting selected. Anyone who posts an adverse comment should be able to prove the allegation with solid proof. The system might look cumbersome but we have no choice.
The next abetters of corruption in this game are the inspectors who go round from college to college to assess them. Now they are selected by the powerful people at random, mostly their own chelas who will do their bid for a price! This should end. One could prepare a country wide list of honest teachers to be inspectors and again their details must be available for public scrutiny following the same guidelines as above. This group of 100-150 all India inspectors must be a reserve force. As and when the need arises, the needed number could be drawn only from that list. This will avoid bad elements again. I am sure this country has many, many honest and good hearted teachers, who cannot be corrupted easily.
In addition, there should be a small group of censors who periodically counter check the inspection details at random. The inspections should not be intimated in advance to the colleges. It must be only surprise inspection and the expenses must be borne by the institutions concerned even the government ones. The inspectors should not take any hospitality, even transport from the colleges. The Councils should bear all that. To compensate for that, hefty fees could be levied on the institutions. They make tons of money anyway. It is common knowledge that anywhere between Rs2-Rs4 crore changes hands for a single post-graduate (PG) seats under the table but the powers that be pretend not to know that. How long can this go on and at what cost to the future generation of doctors? If they start their lives with corruption they will naturally be inhuman doctors out to make up for the huge loss to their parents.
Corruption in ‘Research’
Research organisations are another story. They are also hot beds of corruption. Each one is trying to pat the other on the back for grant disbursement and other favours. Most of them probably do not see the relevance of need based research for our country. Most research is repetitive and many times copycat studies are done wasting the precious tax payers' money with no advantage to the common man.
We need refutative research to demolish many myths in Medical field. Our thrust must be to find inexpensive methods of treatment and not copy the top heavy industry friendly western research. Research should be able to prioritise our needs-the main areas being malnutrition, infant and maternal mortality prevention, communicable diseases still leading the death list, and adverse drug reactions- a curse from the western medical research followed blindly.
While it has been the mother of most alternate systems of medicine with Ayurveda in the forefront, our main line researchers still have a holier than thou attitude towards that and we still do not have strong research base for alternate medicines in the country although AYUSH is apparently trying to do something.
In the area of research, we should have men and women who have the ability to unlearn what they have learnt and relearn again the right methods. Even the framers of the American Constitution had said that there should be “right to health and medical treatment” lest at a future date one system should monopolise the area at the cost of other systems. That idea did not find favours even then. The result today is for all to see.
In the West, of course, followed by us the servants of the western thoughts, western medicine has taken as strong root here in India. Many of our leaders in the field of medicine and of course, politics, think with their western or western style education that all other systems are not "scientific" and have been able to convince our masses, especially the literate ones. This has been our biggest curse.
Most illnesses, barring those needing emergency treatments, could very well be managed by some of the alternate systems of medicine in vogue. Most all of them could be validated using the western standards before being let loose on the people if desired. In fact, Dr Shiv Ayyadurai, an ethnic Indian researcher at MIT, Boston has shown that Ayurveda and Sidha systems of India have a better science base compared to western reductionist medical science!This alone will bring down our sickness care costs to manageable limits.
Medical ethics in this country is non-existent. Corruption is rampant in medical practice and the MCI, which is primary meant to control unhealthy practice in the country closes its eyes to this menace. Practising doctors do not have any periodic ability assessment, neither is there a proper continued professional development activity for them. All these, and more, need to be looked into in detail, Mr Minister. I cannot put more details here but am ready to give further inputs should the need arise. Let us usher in a new era in medical education, research, and medical practice under your able guidance. The country will remember you for eons if you do that. Go ahead, the country is with you.
“Fraud is the daughter of greed.” - Jonathan Gash,
(Professor Dr BM Hegde, a Padma Bhushan awardee in 2010, is an MD, PhD, FRCP (London, Edinburgh, Glasgow & Dublin), FACC and FAMS. He is also Editor-in-Chief of the Journal of the Science of Healing Outcomes, chairman of the State Health Society's Expert Committee, Govt of Bihar, Patna. He is former Vice Chancellor of Manipal University at Mangalore and former professor for Cardiology of the Middlesex Hospital Medical School, University of London.)