💰 Financial Performance

Revenue Growth by Segment

Overall revenue grew 6% to INR 887 Cr in 2024 from INR 833 Cr in 2023. Growth was primarily driven by the packaging segment and the toluene-free ink segment, which saw increased demand. H1 2024 revenue specifically grew 9% to INR 441 Cr compared to H1 2023.

Geographic Revenue Split

Not disclosed in available documents, though an 'export revival' is cited as a key driver for the 6% revenue growth in 2024.

Profitability Margins

Operating margin improved significantly to 4.8% in 2024 from 1.7% in 2023. This was driven by a shift toward higher-margin toluene-free inks and the closure of the loss-making Kolkata plant. PAT margin turned positive at 2.2% in 2024 (INR 20 Cr profit) compared to -2.7% in 2023 (INR 23 Cr loss).

EBITDA Margin

Operating profitability moderated to 3.7% in H1 2025 from 4.5% in H1 2024, primarily due to a one-time forex loss of INR 2 Cr. Medium-term operating margins are expected to stabilize between 4-5% as operating leverage improves.

Capital Expenditure

Planned annual capital expenditure is INR 10-15 Cr over the medium term, primarily for maintenance purposes. This will be fully funded through internal cash accruals of INR 40-45 Cr per annum.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook with nil debt as of June 30, 2025. Interest coverage ratio is exceptionally healthy at over 25 times in H1 2025, up from 4.34 times in 2023.

⚙️ Operational Drivers

Raw Materials

The company uses a variety of raw materials for ink manufacturing, including chemicals and solvents. Toluene is a specific material being phased out in favor of 'toluene-free' formulations which now contribute to higher margins. Raw material price softening led to a 2% decline in realizations in 2024.

Import Sources

Sourced both locally and globally with support from the parent group, DIC Corporation Japan, to manage commodity price risks.

Capacity Expansion

Current capacity is not specified in MT, but the company recently closed its loss-making Kolkata plant to consolidate operations and improve efficiency. Future capex of INR 10-15 Cr is earmarked for maintenance rather than major greenfield expansion.

Raw Material Costs

Raw material costs are a significant portion of the cost structure; realizations fell 2% in 2024 due to the softening of these input prices. The company uses commercial negotiation and parent-group global information to manage these costs.

Manufacturing Efficiency

Efficiency improved following the closure of the loss-making Kolkata plant, which reduced 'other expenses' and helped lift operating margins from 1.7% to 4.8%.

📈 Strategic Growth

Expected Growth Rate

6-9%

Growth Strategy

Growth will be achieved through increasing market share in the domestic ink segment by improving the product mix, specifically expanding the toluene-free ink portfolio which started in 2023. The company is also focusing on export revival and leveraging the packaging segment demand. Cost optimization via Kaizen and the closure of inefficient plants (Kolkata) are central to margin expansion.

Products & Services

Printing inks, specifically packaging inks, toluene-free inks, and traded finished products for the printing industry.

Brand Portfolio

DIC India, DIC Corporation (Parent).

New Products/Services

Toluene-free ink segment, launched in 2023, which is a higher-margin product contributing to the improvement of operating margins to 4.8%.

Market Expansion

Focusing on the domestic printing ink market and reviving export channels to drive revenue beyond the current INR 887 Cr level.

Market Share & Ranking

The company holds a 'strong position' in the domestic printing inks market, though specific percentage ranking is not provided.

Strategic Alliances

Strong support from parent DIC Corporation, Japan, which provides global information for raw material procurement and financial backing in case of distress.

🌍 External Factors

Industry Trends

The industry is shifting toward sustainable and safer chemistries, evidenced by DIC's move into toluene-free inks. The packaging segment remains a primary growth driver for the ink industry.

Competitive Landscape

Competes in the domestic printing ink market; key sensitivity for upward rating is increasing market share through better product mix.

Competitive Moat

Moat is built on technical support and brand equity from the parent, DIC Corporation Japan (a JPY 1,071 billion entity), and a shift toward specialized, higher-margin products like toluene-free inks which are harder to replicate than standard inks.

Macro Economic Sensitivity

Highly sensitive to demand from the packaging industry and global commodity price cycles for chemicals.

Consumer Behavior

Increasing consumer and regulatory preference for toluene-free and safer packaging materials is shifting demand toward DIC's new product lines.

Geopolitical Risks

Exposure to global supply chains for raw materials and export markets, making it susceptible to trade barriers or international price volatility.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with Ind AS 115 for revenue recognition and SEBI (Listing Obligations and Disclosure Requirements) Regulations. The company also monitors commodity price risks and maintains a Risk Management Committee.

Environmental Compliance

The company has adopted a Whistle Blower Policy and a Risk Management Policy to ensure governance. It complies with SEBI Listing Regulations 2015.

Legal Contingencies

The company reported no instances of significant fraud or involvement of management in illegal activities. Auditors issued an unmodified opinion on the financial statements for the year ended December 31, 2024.

⚠️ Risk Analysis

Key Uncertainties

Fluctuations in raw material prices remain the primary risk, potentially impacting margins if cost increases cannot be passed on. Forex volatility also poses a risk, as evidenced by the INR 2 Cr loss in 2025.

Third Party Dependencies

Dependency on the parent group, DIC Japan, for operational performance monitoring and financial support in case of distress.

Technology Obsolescence Risk

The company is mitigating technology risks by transitioning from traditional inks to toluene-free segments to meet modern safety standards.

Credit & Counterparty Risk

Receivables quality is supported by a healthy financial risk profile and a cash surplus of INR 42 Cr, with unutilized bank lines of INR 151 Cr providing a liquidity cushion.