Control Print held a conference call on 14 May 2024 to discuss the results for the quarter ended March 2024 and way forward. Mr. Shiva Kabra - Joint Managing Director and Mr. Jaideep Barve - Chief Financial Officer of the company addressed the call.

Highlights of the Concall

• Net sales increased 14% to Rs 100.61 crore in Q4FY24 while it rose 18% to Rs 359.27 crore in FY24 thereby continuing to focus on growth across the business and supported by growing share of consumable sales during the year.

• Installed base continues to be more than 18,500 printers, aiding growth in consumable sales.

• Food, dairy, FCMG and pipes sector continue to witness good traction for printers and consumables while sugar, plywood, Cement and laminates continued to see consolidation of market share,

• Higher provision for tax is on account of gain on sale of investments.

• Q4FY24 segment wise printer revenue was about 16%, consumables revenue about 59%, revenue from spares and others was 9% and revenue from service was about 16%.

• FY24 Segment wise printer revenue was about 16%, consumables revenue about 61%, revenue from spares and others was 8% and revenue from service was about 15%.

• The company expects its gross margin to be around 60% and higher.

• The company expects FY25 Ebitda margins to be maintained at around FY24 margins.

• Industry growth is normally about one and a half times GDP growth

• Control Print B.V., wholly owned subsidiary of the Company, has incorporated a new Wholly Owned Subsidiary in Italy by the name CP Italy S.r.l. CP Italy S.r.l, Step down subsidiary of the company has acquired certain business assets including land & building, plant & machinery, inventory and intellectual property rights etc. of V-Shapes S.r.l., for an amount of approximately Euros 3.7 million which will be used for future expansion and strategic business in Europe.

• The company, through its wholly owned subsidiary i.e., Control Print B.V. had acquired a majority stake (50.49%) in the equity share capital of Codeology Group Ltd., a company incorporated and existing under the laws of England. The objective of the above acquisition is to gain control over two subsidiaries of Codeology Group Limited i.e., Codeology Limited (incorporated on 11th April, 2005) and Carton Handling Solutions Limited (incorporated on 25th July, 2012), both being companies incorporated and existing under the laws of England

• The company has further invested Euro one million by way of subscribing 1,00,000 equity shares @ euro 10 per share into Control Print B.V, a wholly owned subsidiary of the company for strategic business purpose in the European Market. Being it is a wholly owned subsidiary, there is no change in the shareholding percentage of the Company in Control Print B.V, pursuant to this investment.

• The company sold 868 printers in Q4FY24 and 2859 printers for about FY24.

• Tax rate was higher during the quarter and year on account of gain on sale of investments