Control Print (522295) Q4 05/06 earnings summary

Executive summary

• FY06 total income rose to Rs 4,185.06 lakh from Rs 3,394.13 lakh; PAT reached Rs 607.32 lakh, including a Rs 295.75 lakh extraordinary write-off of irrecoverable advances.

• Sales and service income grew 14.32% YoY; PBT rose 18.98% and PAT 41.54%, with higher other income materially contributing to total income.

Financial highlights

• Sales and service income was Rs 3,801.93 lakh vs Rs 3,325.58 lakh; other income was Rs 383.13 lakh vs Rs 68.55 lakh.

• Profit before depreciation and tax was Rs 1,079.43 lakh vs Rs 660.46 lakh; reported PBT was Rs 738.22 lakh vs Rs 620.45 lakh.

• PAT was Rs 607.32 lakh vs Rs 429.07 lakh; reported EPS was Rs 8.47 vs Rs 6.20.

• Other income included Rs 373.37 lakh profit on sale of investments, compared with Rs 5.89 lakh in FY05.

Outlook and guidance

• Long-term outlook for coding and marking products was positive, with steady growth expected; printer and machine pricing faced competitive pressure.

• Nalagarh production was expected to start in FY07; the first full year to assess market potential of recently launched ink-jet models was FY07.

• Further technologies and product lines were under review, with plans to select promising opportunities for development or launch.