Control Print (522295) Q4 06/07 earnings summary

Executive summary

• FY 2006-07 total income was Rs. 4,181.89 lakh; sales and service income rose to Rs. 3,949.64 lakh from Rs. 3,801.93 lakh YoY.

• Reported PAT was Rs. 568.08 lakh versus Rs. 607.32 lakh; results included a Rs. 68.59 lakh extraordinary charge tied to a disputed IDBI share sale.

Financial highlights

• PBT was Rs. 771.05 lakh versus Rs. 738.22 lakh; profit before depreciation and tax was Rs. 890.52 lakh versus Rs. 1,079.43 lakh.

• Other income declined to Rs. 232.25 lakh from Rs. 383.13 lakh, including lower profit on investment sales.

• Earlier-year adjustment of Rs. 21.10 lakh reduced the year’s profit available after adjustment to Rs. 546.99 lakh.

• EPS was Rs. 7.69 versus Rs. 8.47; proposed dividend was 20% (Rs. 2 per share), absorbing Rs. 172.79 lakh including dividend tax.

Outlook and guidance

• Long-term outlook for coding and marking products was positive, with steady growth expected; printer, machine and consumable pricing was expected to remain under pressure.

• Nalagarh commercial production of Conprint HRC and Hot Ink Rolls was scheduled to begin in the first week of July 2007.

• Digital printing systems for packaging, industrial, textile and security applications were targeted for development, alongside evaluation of additional technologies and product lines.