Control Print – Deserves attention?

Control PR Q2 FY23 Result Update:

• Installed base of printers: 15500+
• Quarterly Run Rate of Revenue 650mn+ maintained
• Lower availability of semiconductors has impacted sales.
• Higher sales of consumables and share increased in revenue led to better margins during the quarter.
• WC improvement continues to be focus area.
• Gross margins/EBITDA margins maintained above 60% and 23%.
• Low Tax rate due to tax concessions at Guwahati.
• Rising momentum in manufacturing activities as there was higher requirement for consumables.
• Consumables business grew 29% YOY.
• Printer sales were on the lower side due to RM shortages. Trying to mitigate the risks in supply chain.
• Gross margins dropped QOQ was due to RM supplies bought at a higher rate.
• Increase in market share by increase in customer competitive accounts
• Consumables has seen an increased traction in installed base.
• Mark Print BV Netherlands: Acquired 75% stake via a subsidiary
• Dairy & Cement segment are showing growth in business.
• Piping segment still remains the leading industry in this business.
• In Q3, they are expecting good volumes from piping and sugar industry.
• Other income mainly includes dividend income.
• Guwahati Facility Consumables Utilization Level: 50-60%
• Employee cost increased due to salary revisions
• Industries are in the growth phase so consumable sales will increase in H2.
• Expecting some products of Mark Print to be introduced in India by Nov, Dec 2022. Results of the same should be seen in FY23.
• Want to keep INR 50 crores as cash. And the rest will be returned to shareholders.
  Orders Received:
• Breweries sector eyeing more sales of TIJ Printers.
• Large export order for laser printers in FMCG sector.
• Pipes sector & sugar industry sees increased customer penetration.