30th Annual General Meeting
Address by Chairman
Dear Shareholders, FY2020-21 (FY21) was a mixed bag for our country as well as our company. FY21 begun amid the first wave and closed in the first quartile of the second wave of the pandemic striking the country. Besides the severe health challenges, it disrupted our economic momentum and recovery throughout the year, though at a varying extent. At the same time, the Country demonstrated heightened resiliency to bounce back to a positive GDP growth by the third quarter of the year. For our Company and our business, we effectively got two months lesser in this year – to manufacture, supply and serve our customers. Inspite of the challenges, we crossed the benchmark of Rs. 200 crore annual revenue in FY21. We also rose to the clarion call of our frontline workers to manufacture and supply high quality protective face masks and of our government to make India Atmanirbhar Bharat.. Yes, we forayed in the face mask manufacturing domain to secure our fellow citizens and support our country’s fight with an invisible enemy.
Ushering in FY21 under the shadow of a complete lockdown, we ensured adequate protection of all our assets – people, goodwill, manufacturing, inventory, installed equipment base, cash – as our first priority. Subsequently, the focus shifted to reboot ourselves in work mode as the restrictions started being lifted by the mid of May 2020. The recovery started thereafter with sequential increase in demand.
We helped our customers in a smooth unlock, servicing the installed base with consumables and maintenance. We intensified our focus on foraying into few newer segments such as dairy, FMCG and building materials. Our strategic shift in sales from the traditional regional/ zonal orientation to the new sector/ product category wise targeting yielded good results. Our equipment sales witnessed good traction across industries and we ended FY21 with an impressive installed base of 13500+ printers.
Our new venture – The Mask Lab – commenced commercial production in July 2020, overcoming many a lockdown induced challenges on its way. With this, we added a new capability of manufacturing surgical face masks and N95* / FFP2 / IS 9473 quality masks and thereby a new revenue segment. You would be happy to note that we distributed our face masks free of cost among frontline warriors and needy sections of the society. The act, besides supporting the country’s fight against novel coronavirus, was widely appreciated and recognised by the concerned authorities and national/ regional media. We also won ‘Best CSR Award’ for the year, conferred by World CSR Congress.
Looking at the financial performance of the Company, we closed FY 21 with our best ever revenue of Rs. 203.69 crore representing a 4.15% growth over FY20. Our Operating profit for the year was Rs. 35.30 Crore with a margin improvement of 6.78%. Our net profit grew by 10.33% to reach Rs. 29.39 crore for the year. Even in the pandemic year, we continued to reward our shareholders with 9th consecutive year of dividend. Post shareholders’ approval in the ensuing AGM, total dividend payout for the year would be 85%.
Looking ahead into the future, we are confident that our expanded installed base, newly added user segments, new sales approach of industry and product segment wise go to market strategy and the mask segment will drive our march forward. With the share of consumables revenue poised to grow steadily, we shall see a sequential improvement in our profit margin. We are sure of our newly introduced products adding to our momentum while expecting replacement market, OEM and Key Accounts to be the leading drivers of growth in FY22. We are moving ahead with certain focused marketing plans to capture the last mile users and are confident of further strengthening our market share with increasing installed base of printers.
We take immense pride in our people, who have demonstrated extreme agility, resilience and commitment towards serving the customers amid these testing times while also ensuring safety and well-being of themselves and their families. On behalf of all shareholders, I place on record our sincere appreciation of their superb contributions. On behalf of our Board, I thank each one of you, our dear shareholders, for your continued trust and guidance in taking Control Print to greater heights. Please join me in acknowledging the invaluable role of all our frontline warriors and praying for a speedy return to normalcy for our 1.35+ billion fellow Indians and everyone across the globe!