DIC India 'inks' a green path

DIC India, earlier known as Coates India, is into manufacture and market printing inks and allied products. Its an MNC, DIC Asia holds 71.75% stake.

The stock is in the limelight today. From yesterday’s close of Rs.383, the stock opened today at Rs.414, going on to Rs.457. Currently it remains over 14% up at Rs.437 levels.

The company, for Q1CY15 (31st Dec year ending) posted a YoY turnaround – from a net loss of Rs.24 crore in Q1CY14, it posted a net profit of Rs.6 crore in current Q1. This was despite a 3% (YoY) drop in net sales at Rs.171 crore. The turnaround was attributed to the 10% drop in operating costs and a 11 times rise in other income at Rs.54 lakh. Also in previous Q1, the company has an exceptional expense of Rs.21 crore which pushed the company further into the red. The write back of Rs.25 lakh as deferred tax in Q1CY15 too helped.

The company had ended 2014 with a loss of Rs.31 crore . Its equity is pretty small at Rs.9.18 crore and reserves stands at Rs.251 crore.