MESSAGE FROM THE CHAIRMAN
Dear Stakeholders,
It brings me great pleasure to share our Annual Report for FY 2023-24.
As we reflect on the past fiscal year, we are proud to showcase our achievements and the
progress we have made in realising our strategic goals. Currently, we have a sufficient
sales force in place, with a few more team members added to support the new business lines
acquired both domestically and internationally. Our focus is on ensuring efficient
business management and streamlining operations throughout. With the existing team, I
believe we can achieve significant sales growth, emphasising more effective and smoother
business operations.
As we continue to strategise and expand our horizons, our evolution
from a primarily CIJ-focussed company to a diverse provider of coding and marking
solutions underscores our commitment to innovation and collaboration. Through strategic
initiatives, we have nurtured our own technologies, facilitating expansion beyond our
traditional offerings. This strategic evolution has enabled us to collaborate with various
industries, driving growth in our non-CIJ business segment. By leveraging our expertise
and fostering partnerships, we have diversified our product portfolio and outpaced the
market.
This approach has helped our Company gain market share steadily over
the past few years. This success highlights our dedication to strategic planning,
expansion into new territories, and collaborative efforts, propelling us towards continued
growth and leadership in the industry.
Macro-Economic Indicators
Despite global challenges, the world economy is projected to showcase a
consistent growth rate of 3.2% in FY 2024-25. A slight uptick is likely in advanced
economies, while emerging markets are forecasted to witness a modest slowdown. In
2023-24, the Indian economy surged with GDP growth reaching 8.2%,
positioning the country as the world's fastest-growing major economy and the
fifth-largest globally. It is poised to become the third-largest economy after the US and
China.
India's investor-friendly policies, including permitting 100% FDI
in most sectors, are helping to enhance our ranking with regard to ease of doing business.
This favourable economic climate in India is driving the demand for coding and marking
solutions across various industries aligning with Control Print's expertise and
offerings. These primarily include healthcare, electronics, chemicals, construction, and
automobiles, aligning with Control Print's expertise and offerings.
Financial Performance
Control Print's revenue saw substantial growth, rising from
_ 291.41 Crores to _ 343.7 Crores, representing a notable increase of
17.94%. This positive trend highlights our capability to boost sales and enhance our
market footprint. In addition, our net worth experienced a significant surge from _ 284.23
Crores to
_ 328.10 Crores, demonstrating a substantial 15.43% growth. This
boost underscores our financial stability and the value we have generated for our
shareholders.
Moreover, our EBITDA showed remarkable improvement, jumping from _
78.43 Crores to
_ 90.71 Crores. This leap points to our enhanced operational efficiency
and effective management of costs and resources.
Our Company's profitability also saw a significant rise during
this period. Our Profit before Tax (PBT) grew from _ 62.40 Crores to _ 75.25 Crores,
reflecting a commendable growth of 21%. Additionally, our Profit after Tax (PAT) increased
from _ 51.93 Crores to _ 55.61 Crores, marking a substantial 7.08% rise. These results
highlight our dedication to maximising profitability and delivering shareholder value.
As for our Company's capital efficiency, our Return on Capital
Employed (ROCE) improved significantly, surging from 21.59% to 24.63%. This improvement
indicated our effective use of capital and higher returns on investment. Our Earnings Per
Share (EPS) also showed notable growth, rising from 31.80 to _ 34.44, showcasing our
commitment to enhancing shareholder value on a per-share basis.
Furthermore, I am pleased to report that we have maintained a
consistent dividend payout of _ 9 per share, reflecting our commitment to rewarding our
valued shareholders. Going forward, we continue to focus on sustained growth, sound
financial management, and creating long-term value for all our shareholders.
Key Developments and Strategies
Currently, Control Print's top priority is to maximise sales in
India, where we see the most profitable short- to medium-term opportunities. With this
aim, our Company has significantly increased investments and established a Special Purpose
Vehicle (SPV) for our holding company, Control Print B.V., based in the Netherlands in
2022. This structure includes three companies, one of which is Markrpint B.V, which was
acquired in 2022.
The acquisition of Codeology Group Limited in this financial year has
enhanced our product offerings in India and opened up the UK market for our products.
Since, Codeology's established customer base provides an excellent cross-selling
opportunity.
Our investment in Control Print, CP Italy S.r.l represents a major
opportunity in a related market, focussing on single unit dose or low single-serve
products. This strategic, long-term investment targets a large addressable market and
creates new growth opportunities.
As a part of our sales strategy, we have diverted our focus from
smaller customers to larger deals with bigger clients, making use of our core strengths.
These clients value the 99.5% reliability that we offer, compared to the 98% reliability
of secondary players, including imports from China. This transition has led to the
development of a new sales model focussing on high value longer-gestation deals.
Although we sold fewer printers in FY 2023-24 approximately 2,800
compared to approximately 3,200 in the previous year, the profitability and lifetime value
of these sales have increased. Our goal is to boost sales volume further, while
maintaining high quality standards, enhancing profitability and generating more business
over the printer's lifetime.
While we still cater to smaller customers, our Company's primary
focus is on our core customer base to ensure effective utilisation of our sales resources.
This new approach is a valuable learning experience and represents a significant strategic
shift. Our team is committed to maintaining this focus for sustained success.
Way Forward
Looking ahead, our business profile would be distinct from our
traditional coding and marking endeavours, driven by our recent acquisitions abroad. We
are exploring new opportunities in these areas and have also made substantial investments
therein. For our community of investors, it is essential to understand the nature of these
investments and the rationale behind them.
Closing Note
As we forge ahead with our strong capabilities to drive stronger
progress, we extend our sincere appreciation to the Board of Directors for their
passionate and skilful leadership. We also express our profound gratitude to all our
stakeholders for their continued trust and support. Moreover, our journey would be
incomplete without acknowledging the persistent efforts of all our employees. Their
commitment to crafting top-notch products aligns well with our Company's strategic
goals and sustainability endeavours. Together, we will continue to propel innovation,
exceed expectations, and create a brighter future for Control Print Limited.
Best Regards,
| Basant Kabra |
| Chairman & Managing Director |