Control Print (522295) Q2 24/25 earnings summary

Executive summary

• Standalone total income for H1 FY25 reached INR 185 crores, up from INR 165 crores YoY, with Q2 FY25 revenue at Rs. 931.4 mn, the highest ever, driven by consumable sales and sectoral focus.

• Installed base exceeds 19,500 printers, supporting recurring consumable sales and market share gains.

• Growth driven by focus on key accounts, improved sales quality, and expansion into new business lines.

• Strategic investments in subsidiaries and new verticals aim to boost long-term growth beyond the core coding and marking business.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2024.

Financial highlights

• Standalone revenue for H1 FY25: INR 185 crores, up from INR 165 crores YoY; Q2FY25 net sales rose 12.1% YoY to Rs. 931.4 mn.

• EBITDA, PBT, PAT, and EPS (excluding exceptionals) grew by 7.3%, 11.6%, 15.5%, and 70.5% YoY, respectively; Q2FY25 EBITDA at Rs. 223.5 mn, PAT at Rs. 168.0 mn.

• Gross margin for Q2FY25 at 59.63%, up 83 bps YoY; EBITDA margin at 23.99%, down 107 bps YoY.

• Standalone net profit for Q2 FY25: ₹1,679.60 lakhs, up from ₹1,454.35 lakhs in Q2 FY24.

• Buyback of 337,500 shares at ₹800 per share completed; dividend paid during the period: ₹799.71 lakhs.

Outlook and guidance

• Management expects to maintain or exceed market growth rate of 10-12% in the core business, with focus on higher consumable sales and new product launches.

• Targeting 2,700-2,800 printer sales for the year, with a focus on higher quality sales and larger accounts.

• Plans to expand market share through increased installed base and global market access via organic and inorganic routes.

• Investments in track & trace, packaging machinery, and digital printing are in the ramp-up phase, with a two-year horizon for clear results.