Shares of D-Link (India) Limited tanked nearly 9 percent today and currently trade at Rs 251. Ace Investor Mr. Ashish Kacholia has invested in the stock and currently holds 7,50,000 shares with a holding value of about Rs 18.8 crores.
The company recently announced results for Q4 as well as for FY22-23. Details of the same are been mentioned later on in the piece. The company’s Board also recommended a final dividend of Rs 5 per share and a special dividend of Rs 5 per share totaling a dividend of Rs 10 per share for FY22-23. The payment for the same is subject to the shareholder’s approval.
D-Link (India) Limited is engaged in the business of developing and selling local area computer network systems (LANs) and spare parts for integrated circuits. The product portfolio of the company includes broadband products, switches, wireless local area network (WLAN) products, as well as other network products such as servers, network lines, hubs, etc. The company conducts its operation in America, Europe, and Asian parts.
Having a quick glance at the quarterly financials reported by the company, the operating revenues and net profits exhibit movements in numbers in the opposing direction with operating revenues increasing from Rs 280 crores in Q3 v/s Rs 311 crores in Q4 and net profits, during the same period, took a shift from Rs 27 crores to Rs 20 crores showing a decrease of approximately 26 percent.
On a YoY basis, the operating revenues as well as net profits of the company showed an up movement with the former increasing from Rs 918 crores in FY21-22 to Rs 1,181 crores in FY22-23 and the latter showing a movement from Rs 42 crores to Rs 86 crores during the same period.
The profitability metrics have been on the rise in recent financial years with the return on equity (ROE) increasing from 12.42 percent during FY20-21 to 14.87 percent in FY21-22. Moreover, the return on capital employed (ROCE) improved from 17.14 percent to 20.18 percent keeping the timeframe the same.
According to the details available for the March quarter, promoters of the company hold a 51.02 percent stake, and Foreign Institutional Investors (FIIs) hold a 0.35 percent stake in the company.
Written by Amit Madnani
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