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By:

Quaid Najmi

4 January 2025 at 3:26:24 pm

Commercial LPG 'evaporates' in Maharashtra

Mumbai : The short supply of commercial LPG cylinders turned ‘grim’ on Wednesday as hundreds of small and medium eateries – on whom the ordinary working Mumbaikars depend on for daily meals – shut down or drastically trimmed menus, on Wednesday.   With an estimated 50,000-plus hotels, restaurants and small food joints, the crunch is beginning to be felt severely, said Federation of Hotel and Restaurant Association of India (FHRAI) vice-president and Hotel and Restaurant Association Western...

Commercial LPG 'evaporates' in Maharashtra

Mumbai : The short supply of commercial LPG cylinders turned ‘grim’ on Wednesday as hundreds of small and medium eateries – on whom the ordinary working Mumbaikars depend on for daily meals – shut down or drastically trimmed menus, on Wednesday.   With an estimated 50,000-plus hotels, restaurants and small food joints, the crunch is beginning to be felt severely, said Federation of Hotel and Restaurant Association of India (FHRAI) vice-president and Hotel and Restaurant Association Western India (HRAWI) spokesperson Pradeep Shetty.   “We are in continuous touch with the concerned authorities, but the situation is very gloomy. There is no response from the Centre or the Ministry of Petroleum on when the situation will ease. We fear that more than 50 pc of all eateries in Mumbai will soon down the shutters. The same will apply to the rest of the state and many other parts of India,” Shetty told  ‘ The Perfect Voice’ .   The shortage of commercial LPG has badly affected multiple sectors, including the hospitality and food industries, mass private or commercial kitchens and even the laundry businesses, industry players said.   At their wits' ends, many restaurateurs resorted to the reliable old iron ‘chulhas’ (stoves) fired by either coal or wood - the prices of which have also shot up and result in pollution - besides delaying the cooking.   Anticipating a larger crisis, even domestic LPG consumers besieged retail dealers in Mumbai, Pune, Chhatrapati Sambhajinagar, Ratnagiri, Kolhapur, Akola, Nagpur to book their second cylinder, with snaky queues in many cities. The stark reality of the 12-days old Gulf war with the disturbed supplies has hit the people and industries in the food supply chains that feed crores daily.   “The ordinary folks leave home in the morning after breakfast, then they rely on the others in the food chain for their lunch or dinner. Many street retailers have also shut down temporarily,” said Shetty.   Dry Snacks A quick survey of some suburban ‘khau gullies’ today revealed that the available items were mostly cold sandwiches, fruit or vegetable salads, cold desserts or ice-creams, cold beverages and packed snacks. Few offered the regular ‘piping hot’ foods that need elaborate cooking, or charging higher than normal menu rates, and even the app-based food delivery system was impacted.   Many people were seen gloomily munching on colorful packets of dry snacks like chips, chivda, sev, gathiya, samosas, etc. for lunch, the usually cheerful ‘chai ki dukaans’ suddenly disappeared from their corners, though soft drinks and tetrapaks were available.   Delay, Scarcity  Maharashtra LPG Dealers Association President Deepak Singh yesterday conceded to “some delays due to supply shortages” of commercial cylinders, but assured that there is no scarcity of domestic cylinders.   “We are adhering to the Centre’s guidelines for a 25 days booking period between 2 cylinders (domestic). The issue is with commercial cylinders but even those are available though less in numbers,” said Singh, adding that guidelines to prioritise educational institutions, hospitals, and defence, are being followed, but others are also getting their supplies.   Despite the assurances, Shetty said that the current status is extremely serious since the past week and the intermittent disruptions have escalated into a near-total halt in supplies in many regions since Monday.   Adding to the dismal picture is the likelihood of local hoteliers associations in different cities like Pune, Palghar, Nagpur, Chhatrapati Sambhajinagar, and more resorting to tough measures from Thursday, including temporary shutdown of their outlets, which have run out of gas stocks.

Dividends: The Santa Claus of Stocks

Updated: Dec 23, 2024

Dividends

Every year, investors eagerly anticipate dividends, much like children waiting for Santa Claus. These distributions of corporate profits, paid to shareholders, are one of the most rewarding aspects of owning stocks. While stock price appreciation is a major driver of returns, dividends often act as a reliable, consistent gift that keeps on giving.


A Seasonal Surprise

Just as Santa delivers presents annually, many companies reward their shareholders with periodic dividends, often on a quarterly or half-yearly basis. This predictable payout can be especially comforting during market volatility, making regular dividend payments feel like getting a holiday bonus throughout the year.


The Gift That Keeps Giving

What makes dividends special is their ability to compound over time. Reinvesting dividends allows investors to buy more shares, which in turn generates additional dividends. This creates a snowball effect, where earnings grow year after year. Like Santa's never-ending sack of presents, a well-chosen dividend-paying stock can continue rewarding investors far into the future.


In many ways, dividends are like rental income from real estate—they provide a steady cash flow that keeps your motivation to stay invested, even when market conditions fluctuate.


For example, companies in sectors like consumer-facing industries, information technology, pharmaceuticals, government-owned enterprises, and multinational corporations are known for their generous and steady dividend payments. Dividends provide stability in a portfolio, and over time, these steady payments—when combined with reinvestment—can lead to substantial wealth accumulation.


A Sign of Financial Health

Dividends also serve as a sign of a company’s financial well-being. Much like Santa’s arrival signals joy and prosperity, a regular dividend payout indicates that a company is generating sufficient profits and has confidence in its future. Strong dividend payouts reflect not only paper profits but also healthy cash flows, suggesting robust operations. Investors view dividends as a positive indicator of sound management and fiscal stability. It’s a message to shareholders: "We have plenty to give, and we believe in the long-term success of our business."


Apart from dividends, it’s crucial to assess other metrics like growth rate, return ratios, and debt-to-equity ratio to ensure the company is genuinely growing, converting profits into cash flows, and capable of distributing them sustainably.


Not Every Stock Is Santa

However, not all companies can play Santa Claus. It is important to research well or take help or an advisor so that you choose the right companies to invest in.


In short, dividends are the stock market's Santa Claus—bringing joy, wealth, and the promise of a prosperous future to those who are patient and wise with their investments.


(The author is a Chartered Accountant and CFA (USA). Financial Advisor.

Views personal. He could be reached on 9833133605. )

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