Control Print Limited – Investor Presentation Summary

Key Operational Highlights

  • Installed base now exceeds 23,000 printers, driving strong recurring revenue from consumables
  • Printer sales exceeded expectations, adding 2,500-3,000 units annually to installed base
  • Presence across 1,700+ cities/towns and 2,700+ pin codes served in India
  • 350+ sales and service engineers supporting operations
  • 35 years of industry experience in coding and marking solutions

Key drivers of operational performance:

  • Robust printer sales supported by focused sales & promotion initiatives
  • Strong performance in Food, OEM and Dairy segments during the quarter
  • Continued market share consolidation in Pipes, Food, Dairy, Cable & Wire, FMCG, Steel & Metal, and Wood sectors
  • Healthy traction in Dairy, Sugar, Plywood, and Cement segments

Segment-wise Performance

  • Coding and Marking business represents 90-95% of consolidated revenue
  • Track & Trace segment expected to gain strong momentum going forward
  • International businesses (Markprint BV, Codeology UK) contributing to diversification

Financial Highlights (Standalone)

Q2FY27 Performance:

  • Revenue: ₹1,308.7 million
  • Gross Profit: ₹763.7 million
  • EBITDA: ₹321.5 million
  • PAT (excl. exceptional): ₹186.2 million
  • EPS (excl. exceptional): ₹11.64

Margins:

  • Gross margin: 58.35%
  • EBITDA margin: 24.57%
  • PAT margin: 14.23%

YoY/QoQ comparison:

  • Revenue growth: 28.3% YoY, 25.1% QoQ
  • EBITDA growth: 11.5% YoY, 52.5% QoQ
  • PAT (excl. exceptional): -6.1% YoY, 50.3% QoQ

H1FY27 Performance:

  • Revenue: ₹2,355.0 million, up 16.3% YoY
  • EBITDA: ₹532.3 million, up 4.4% YoY
  • PAT (excl. exceptional): ₹310.1 million, down 16.4% YoY

Drivers of financial performance:

  • Higher revenue growth from printer sales and consumables
  • Operational efficiencies driving improved sequential performance
  • Margin pressure from increased operational expenses

Geographical Revenue Split

  • Domestic vs Export/Regional Revenue: Not Specified
  • International presence through subsidiaries in Italy, Netherlands, UK, and UAE

Balance Sheet Snapshot (Standalone H1FY27)

  • Total Equity: ₹5,437.7 million
  • Total Assets: ₹6,745.7 million
  • Inventories: ₹1,090.1 million
  • Trade Receivables: ₹1,148.6 million
  • Cash & Cash Equivalents: ₹25.0 million
  • Bank Balances: ₹55.0 million
  • No borrowings reported

Financial Health Insights:

  • Strong cash flow generation with annual operating cash flows consistently ≈₹50 crore
  • Excellent EBITDA-to-cash conversion of ~65%
  • ROCE of 15-20%+ reflecting disciplined capital allocation

Capex & Cash Flow Health

  • Capital Expenditure: Not Specified
  • Free Cash Flow: Not Specified
  • Operating Cash Flow: Not Specified

Investment Rationale:

  • Focus on capacity expansion with manufacturing facilities in Nalagarh (30,000 Sq.ft) and Guwahati (70,000 Sq.ft)
  • Technology upgrades through international acquisitions

Strategic & R&D Initiatives

  • Strategic global acquisitions of Markprint BV, Codeology UK, V Shapes assets
  • Diversification into digital printing, automation, sustainable packaging, and advanced track-and-trace technologies
  • QRiousCodes track and trace solutions offering cloud-based supply chain visibility
  • Development of complete suite of offerings including hardware, consumables, and software

Expected impact on growth:

  • International products now being sold in Indian market with initial success and key orders
  • Setup of subsidiary in Middle East to target coding and marking opportunities

Industry Trends & Business Environment

  • Coding/marking essential for regulatory compliance (batch numbers, QR codes) across multiple industries
  • Industry size in India: ₹2,000-2,200 crore, growing at 1.5x GDP
  • 4 key players dominate 80% of domestic market, with Control Print having 18-20% market share

Impact on Company:

  • Regulatory and habit-driven demand supporting core business
  • Global trends toward digitization and sustainability in packaging aligning with strategic direction

Management Commentary & Growth Outlook

  • Strategic focus on three-pronged growth strategy: expanding coding/marking business globally, scaling Track and Trace business, entering packaging business through Vshapes
  • Goal to outpace industry growth in India on existing standalone business
  • Growing Markprint and Codeology businesses in European region
  • Leveraging innovative QR code technology for supply chain transparency and product authenticity

FY Guidance:

  • Not Specified

Risks and Opportunities:

  • Not Specified

ESG Updates:

  • Not Specified

Digital Transformation:

  • QRiousCodes providing full stack intelligent supply chain end-to-end traceability platform with analytics and reporting
  • DLT/Blockchain based UIDs for anti-counterfeiting and product authentication