Control Print (522295) Q4 96/97 earnings summary

Executive summary

• FY ended 30 Jun 1997 total income was Rs.1,394.67 lakh; net profit after adjustments was Rs.61.09 lakh, down from Rs.104.32 lakh in FY96.

• Coding and marking remained the core business; plans centered on expanding market reach and pursuing local manufacturing with Markem Corporation.

Financial highlights

• Sales and service income was Rs.1,368.06 lakh versus Rs.1,109.72 lakh; other income fell to Rs.26.61 lakh from Rs.169.66 lakh.

• Profit before depreciation and tax was Rs.93.10 lakh versus Rs.120.95 lakh; PBT was Rs.70.94 lakh versus Rs.104.43 lakh.

• Net profit after tax was Rs.62.74 lakh before earlier-year adjustments; final net profit for the year was Rs.61.09 lakh after Rs.1.65 lakh adjustments.

• No dividend was recommended, with resources to be conserved for ongoing expansion and the proposed joint venture.

Outlook and guidance

• Wider marketing and service coverage was expected to support deeper market penetration, higher turnover and improved profitability.

• Delayed rights-issue funding disrupted the project implementation schedule and contributed to sales falling short of the offer-letter projection; revised use of funds was expected to improve future turnover and profits.

• Negotiations with Markem Corporation on financial and technical participation were ongoing; final participation was dependent on a memorandum of understanding.