Control Print Limited , India's leading coding and marking solutions provider, has announced its financial results for the first quarter, showcasing robust growth and strategic expansion.

Record-Breaking Revenue

The company achieved its highest ever Q1 revenue of Rs 1,005.00 million, marking a significant 14.00% year-over-year growth. This performance underscores Control Print's strong market position and effective growth strategies in the coding and marking sector.

Profitability Highlights

Control Print's standalone profit before tax (PBT), excluding exceptional items, grew by an impressive 30.00% year-over-year. The company's profit after tax (PAT) also saw substantial growth compared to the same quarter last year.

Operational Performance

During the quarter, Control Print sold two packaging machines, signaling positive traction in its diversification efforts. The company maintains a robust installed base of over 21,500 printers, which continues to drive consumable sales and recurring revenue.

Market Position

Control Print has solidified its position in India's organized coding and marking sector, holding a substantial 19-20% market share. This strong foothold allows the company to capitalize on the growing demand for coding and marking solutions across various industries.

Exceptional Income

The company recognized an exceptional income of Rs 39.90 million during the quarter. This amount represents a capital investment grant received under the Central Capital Investment Incentive for Access to Credit (CCIIAC) from the Directorate of Industries, Government of Himachal Pradesh.

Margin Analysis

While the company demonstrated strong top-line and bottom-line growth, there was a slight compression in margins:

• Gross margin softened to 56.47% from 61.65% in the previous year, primarily due to higher printer sales.

Business Segments

Control Print operates through multiple business segments including:

1. Coding & marking equipment
2. Track & trace solutions through QRiousCodes brand
3. Packaging business through V Shapes

Outlook

With its strong market position, diverse product portfolio, and strategic focus on high-volume customers, Control Print is well-positioned to capitalize on the growing demand for coding and marking solutions. The company's efforts in expanding its presence and introducing new technologies are expected to drive future growth.

As Control Print continues to innovate and expand its market reach, investors and industry observers will be keenly watching its performance in the coming quarters, especially in light of its recent acquisitions and expansion efforts.

Control Print Limited , a leading coding and marking solutions provider, has released its financial results for the first quarter, showcasing a mixed performance with revenue growth but a decline in profitability.

Revenue Growth

The company reported a consolidated revenue of ₹111.29 crore for Q1, representing a substantial increase from ₹97.83 crore in the same quarter of the previous year. This 13.75% year-over-year growth in top-line performance demonstrates Control Print's ability to expand its market presence and drive sales despite challenging market conditions.

Profit and Margin Pressure

Despite the revenue growth, Control Print experienced a decline in profitability metrics:

• Net Profit: The consolidated net profit for Q1 stood at ₹8.56 crore, down from ₹11.66 crore in the corresponding quarter last year, marking a 26.55% decrease.
• EBITDA: The company's EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) decreased to ₹18.60 crore from ₹20.40 crore year-over-year.
• EBITDA Margin: The EBITDA margin contracted to 16.70% from 20.90% in the same period last year, indicating increased cost pressures.

Financial Highlights

Operational Insights

The company's performance reflects a scenario of growth accompanied by margin pressures. The increase in revenue suggests strong demand for Control Print's products and services. However, the decline in profitability metrics indicates that the company faced higher costs or competitive pricing pressures during the quarter.

Management Commentary

In the board meeting held on July 21, the company's management approved the unaudited financial results for the quarter ended June 30. The meeting, which was conducted through video conferencing, commenced at 12:00 Noon and concluded at 01:25 P.M.

Exceptional Item

It's worth noting that Control Print received a grant of ₹3.99 crore under the Central Capital Investment Incentive for Access to Credit (CCIIAC) from the Directorate of Industries, Government of Himachal Pradesh. This grant, classified as a capital investment subsidy, represents 30% of the investment made in plant and machinery during the financial year 2020-21 for the mask division. The entire grant amount has been recognized as exceptional income due to the completion of depreciation on the related machinery.

Conclusion

While Control Print has demonstrated strong revenue growth in Q1, the company faces challenges in maintaining profit margins. The management's ability to balance growth with profitability will be crucial in the coming quarters. Investors and analysts will likely keep a close eye on how the company manages costs and leverages its market position to improve bottom-line performance while continuing its top-line expansion.