DIC India Ltd

DIC India's financial performance shows mixed signals. While historical sales growth was evident, the recent TTM sales growth is negative. Profit growth, however, has been positive in recent years. Operating profit margins need improvement and stabilization to ensure consistent profitability.

| Metric | 2005-2007 | 2008-2009 | |---|---| | Sales Growth % | 19.27% | 6.97% | | OPM % | 6.67% | 7.5% |

The compounded sales growth shows 11% for the past 3 years, but TTM shows a decline of -2%. Compounded profit growth is at 21% for the past 3 years and 27% for TTM, indicating a positive trend despite the sales slowdown. OPM averaged around 7% during 2005-2009, showing the stability of the company.

The capital efficiency and returns of DIC India are relatively weak. The current ROCE is 6.69%, ROE is 4.82%. These metrics indicate that capital is not being utilized very productively to generate returns.

| Metric | 2006 | 2007 | 2008 | 2009 | |---|---|---|---| | ROCE % | 14% | 17% | 16% | 15% |

The ROCE has declined from 15% in 2009 to a current ROCE of 6.69% which is a significant decline over the years. The low return on equity also suggests that shareholder funds are not yielding strong returns. The company needs to improve its capital allocation and operational efficiency to enhance these returns.

DIC India's financial health and prudence show moderate leverage. The company has borrowings, but the debt-to-equity ratio is not excessively high. Interest coverage needs monitoring to ensure obligations can be comfortably covered. The company consistently shares profits through dividends.

The company's borrowings have remained stable over the years at an average of 45Cr. The dividend payout has been consistent, averaging around 17% during 2005-2009. These factors suggest a balanced approach to financial management.

DIC India's operational efficiency is reflected in its working capital management. The cash conversion cycle is relatively long. The fixed asset management indicates strategic investments and growth orientation.

| Metric | Dec 2005 | Dec 2006 | Dec 2007 | Dec 2008 | Dec 2009 | |---|---|---|---|---| | Debtor Days | 124 | 117 | 104 | 103 | 100 | | Inventory Days | 77 | 80 | 59 | 70 | 68 | | Payable Days | 122 | 75 | 72 | 64 | 56 | | Cash Conversion Cycle | 80 | 122 | 90 | 109 | 112 |

The debtor days have decreased from 124 to 100 days from 2005-2009 indicating efficient management. The cash conversion cycle is relatively long, averaging around 103 days during 2005-2009 indicating working capital inefficiencies.

There is no specific data available on off-balance sheet exposures. This lack of information makes it difficult to assess the potential risks associated with such exposures.

There is no specific data available on contingent liabilities. This lack of information makes it difficult to assess the potential risks associated with such liabilities.

There are no specific accounting quality red flags identified in the provided data.

There is no specific data available on regulatory compliance cost trends. This lack of information makes it difficult to assess the potential risks associated with regulatory compliance costs.