Colour Chem has reported disappointing results for FY 2000. While the turnover has staganted operating margins have declined. The net profits have increased primarily due to the fact that last year the company gave a VRS to 443 persons and wrote off Rs 270 m in the income statement.
The continuing slowdown in industrial production has affected both the topline and the operating profit growth of Colour Chemicals. While life sciences contribute around 40% to the turnover of the company, pigments contribute another 35%. Around 25% of the turnover is contributed by the textile, leather and paper chemicals division. All divisions have to some extent been affected the industrial slowdown.
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The stock quotes at Rs 1505 (face value: Rs 100) at an earning multiple of 25 times.
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