31st Annual General Meeting
Address by Chairman
Dear Shareholders,The fiscal year 2022 proved to be equally if not more eventful than the pandemic hit the ‘previous’ year. If the waves of viral variants were not discouraging enough, the sustained conflict between Russia and Ukraine in the last quarter of the fiscal, and the consequent sanctions imposed resulted in economic repercussions reverberating across the globe. Apart from the cost of human lives that a war extracts, food shortages, supply-side challenges and fuel price hikes are now pushing people and countries into yet another area of economic uncertainty. This repeated barrage on consumption sentiments through Covid-19 waves and an impending war resulted in a muted recovery of economic growth both for the world and India.
However, even during such challenging times, our Company sustained its market leadership and continued to grow in terms of revenue, margins and volume – solely due to the resilience of our team and the trust of our customers. The strong performance was the outcome of all divisions delivering to achieve the Company’s target. This was managed through extensive market coverage across all major industrial segments and a dedicated focus on customer requirements.
Sectors that are gradually recovering from the pandemic and its subsequent lockdowns like healthcare, cable and wire, agrochemicals, and pharma are in turn driving the recovery of our Small Character Printers (SCP) division, which witnessed a growth of 16.5% from the previous year.
Impressive growth rates were registered by our Thermal Inkjet Printer (TIJ), High-Resolution Printer (Hi-Res) and Thermal Transfer Over Printer (TTO) divisions, which are exhibiting exponential year-on-year growth.
The total revenue from operations of the Company stood at Rs. 254.26 Crores in FY22, marking a year on- year growth of 24.8% from the previous fiscal. The EBIDTA for the year under review was Rs 62.67 Crores, rising by 24.5% over the previous year. There was also a significant 41.7% growth in Profit Before Tax, which reached Rs 50.02 Crores owing to streamlined operations and reduced operating expenses.
Control Print continues to strengthen its position in the market and is more confident than ever about achieving its long-term goals. The resilience of our business model was once again demonstrated with performance that exceeds the industry average and overshadows the macroeconomic factors. The strength of our team was demonstrated with deeper market penetration and a growing customer base. The new product launches were well-received by our customers, and continue to contribute to the growth of our revenue. The robustness of the service team was visible in growing revenue from services.
The optimistic outlook we harbour is anything but empty. On the contrary, it is filled with strategic plans to achieve our long-term goal of being the number one player in the Indian coding and marking industry. In the coming three years, we aspire to grow our revenue to Rs. 400 Crores, while widening our footprint, capacity and market share.
In order to achieve these short and long-term goals and to stay ahead of the competition, we are taking active steps towards identifying customer needs periodically in order to provide the best possible technical and commercial solution. This has already led to us improving our product mix and consequently maintaining higher revenues and margins, while we continue to generate positive operating cash flows. Furthermore, our market penetration strategies include partnerships and collaborations that are aimed at consolidating the Company with proper synergies.
Our Company is expected to witness double-digit growth in the upcoming fiscal year while continuing to maintain EBITDA margins north of 24% on a sustainable basis. The Company’s liquidity as evidenced by its strong cash flow from operations and zero long-term debt. The fundamental and inherent strength of the Company comes from its cardinal pillars, which are its employees, machine, technology and liquidity that are well established to augment our business plan.
At the end of the financial year, I take this opportunity to extend my appreciation to all the stakeholders for their continued trust in our Company. My gratitude also goes out to my fellow Board members, whose supervision and guidance continue to drive the Company forward.