D-Link India edged up on Thursday on the back of Q3 excellent results unveiled by the company after trading hours on Wednesday, which saw a surge in its net profit.
The stock of the MNC networking major was up by 3.2% at Rs 56.75 on the BSE. It, however, slipped from the day's high of Rs 57.40. 9,900 shares changed hands on the counter in the first few hours of trading.
The D-Link India scrip has witnessed a sustained decline on the bourses in the last few months, and it currently trades close to its 52-week low of Rs 53.05 that it hit on 27 January 2003. From a peak of Rs 114.50 on 6 May 2002, the scrip slipped by 53.6% in less than 9 months to Rs 53.05 on 27 January 2003.
The current recovery on the counter comes on the back of improved Q3 results. D- Link India has posted a 83% rise in its net profit to Rs 3.97 crore (Rs 2.16 crore) on a 17% growth in total income (net of excise) to Rs 41.55 crore (Rs 35.37 crore).
Not much details were known as to what led to the surge in Q3 net profit of the company, but analysts said the results were good.
D-Link India, which is the Indian subsidiary of D-Link Corporation of Taiwan, has two main segments - Networking and Software. It is the only networking hardware company which manufactures NICs, hubs, switches, structured cabling and modems in India. The company has recently expanded its product range into newer segments like Voice over Internet Protocol, firewalls and motherboards.
D-Link India is now focussing on latest innovations like layer3 technology, wireless systems and security features like firewalls and storage technologies. Among its major clients are the Reserve Bank of India, State Bank of India, ICICI Bank, Bank of India, IIT (Kanpur) besides several other technical institutions.
The company recently announced that its software and R&D division has developed low-cost IP phones. It has also introduced modem-based IP phones with local language voice prompts.
Last year, D-Link India entered into a tie-up with Gigabyte Technology, Taiwan, for the marketing and manufacture of motherboards under the brand name 'Digilink-Gigabyte'. Founded in April 1986, Gigabyte Technology is one of the largest motherboard makers in the world and is ranked No. 3 worldwide in the motherboards market.