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DIC India Ltd.

BSE: 500089 Sector: Industrials
NSE: DICIND ISIN Code: INE303A01010
BSE LIVE 15:29 | 08 Dec 498.10 5.00
(1.01%)
OPEN

504.00

HIGH

508.95

LOW

498.05

NSE 15:30 | 08 Dec 505.25 11.60
(2.35%)
OPEN

493.10

HIGH

508.95

LOW

493.10

OPEN 504.00
PREVIOUS CLOSE 493.10
VOLUME 233
52-Week high 593.25
52-Week low 432.65
P/E
Mkt Cap.(Rs cr) 457
Buy Price 498.10
Buy Qty 36.00
Sell Price 501.95
Sell Qty 2.00
OPEN 504.00
CLOSE 493.10
VOLUME 233
52-Week high 593.25
52-Week low 432.65
P/E
Mkt Cap.(Rs cr) 457
Buy Price 498.10
Buy Qty 36.00
Sell Price 501.95
Sell Qty 2.00

DIC India Ltd. (DICIND) - Chairman Speech

Company chairman speech

DIC INDIA LIMITED ANNUAL REPORT 2006 CHAIRMAN'S REPORT From the Chairman Dear Shareholders, The year gone by was a remarkable year for India. For the fourth year in succession, year end estimates of GDP growth have exceeded initial expectation and is expected to grow at 9.2% in 2006-07. A consensus has now been built up that India can be a manufacturing hub for global companies. The stock market has scaled new peaks year after year since 2003, with the BSE and NSE indices crossing the 14,000 and 4,000 mark, respectively. The foreign exchange reserves reached a new high of US$ 200 billion. However, increase of Crude oil price reacted very negatively. The crude oil price went up by nearly 235 per cent in 39 months. Thereafter, it cooled down a bit. Inflation increased significantly from 4.24% in 2005-06 to 6.11% in 2006-07. due to a shortcoming on the supply side which was accompanied by buoyant growth of money and credit. The robust export performance could not contain the node deficit clue to impact of soaring oil prices, although service exports helped to ameliorate the impact on the current account. During the year under review, the Company gained further market share in the Publication and the News Inks Segment. It in expected that in the coming years there would be a substantial growth in the News Inks business and in anticipation the Company has made and continues to make major capital investments in Noida for the News Colours Project and in Ahmedabad for the News Black Project. In the above scenario, your Company's overall net sales increased from Rs.2,785.55 million to Rs.3,394.96 million leading to an increase in operating profit of the Company by 15%. However, due to rising interest rates, PBT and PAT took a hit with Pre-tax profit at Rs.145.38 million compared to Rs.147.17 million earned in the previous year. Similarly, the post tax profit was Rs.99.86 million in 2006 compared to Rs.101.34 million in the current year. The operation of the Company's wholly owned subsidiary, DIC Coatings India Limited was also adversely affected due to increase in raw material cost. DIC Coatings has started its relationship with one of the major customers in the container business. To counter the increased raw materials cost. DIC Coatings undertook and completed its price increase activity. The Company increased its sales bum Rs.335.37 million in 2005 to Rs.373.20 million during the year. Through a series of measures aimed at improving profitability, the Company was able to register a growth of almost 32.33% in Profit before tax which was at Rs.46.37 million as against Rs.35.04 million registered during the last year. Likewise, profit after tax, also registered a ,significant growth of 35.43% increasing to Rs.30.20 million as against Rs.22.30 million in the previous year. The Board has approved the merger of its other subsidiary. Rohit (Printing Inks & Paints) Industries Private Limited with itself. Future growth in the Printing Inks business will call for greater investments and keeping a balance between shareholders' expectations and retention for growth, your Board has recommended maintaining dividend at Rs.3.50 per share. The Printing Ink Industry in India is going through a phase of re-alignment and a number of manufacturers are making an effort to enter the Indian Market. Some of them have already set up their outfits in India. In order to meet the challenge, it has become essential for your Company to ensure that its products are competitive in terms of quality and price compared to other international and domestic manufacturers. It is also equally- important to ensure that the Company is in a position to offer et wide range of high technology products commensurate with the technological developments in Graphic Arts. In the background of the above, the Board has approved the issue of rights shares, within the price band of Rs.210 - Rs.230 per share, in the ratio of 1:3 i.e. one equity share for every three equity shares held by shareholders to augment its capital requirement, details of which have been fully given in the Annual Report. It is the earnest endeavour of the Company to attain higher levels of internal efficiency to counter the pressures put by external forces. The Company would lay further focus on improving the operating margins through better productivity and greater focus on logistics. It is also anticipated that the expected demand growth in the domestic market will lead to better business prospects for the Company. With the continued support from the Parent Group, the Company's efforts to upgrade the technology and equipment will enable the Company to put itself in a stronger position to face challenges of the future. To conclude, I would like to say that your trust and faith in the Company have been our great strengths. With the future of the Company safe and secure in the hands of a very efficient team, I am confident, we will all be a part of the growth story of the Company in the years to come. As I had undergone a surgery a little while ago, I will need a little more time to recover fully and hence will not be able to attend this AGM in person, but hope to see you all soon with the fruits of good performance this year. J N Sapru Kolkata 18th April, 2007