Another very good set of nos, with 25% sales growth and 48% EPS growth. Concall notes below
FY23Q3
- Gross margins were impacted due to supply chain problems in printer parts
- Printer base increases to 16500+ and market share improves to 19% (sold 814 printers in Q3 vs 675 in Q2)
- Printer has a life of 8-12 years, they don’t consider a customer in the printer base if a customer is not operational for 6 months
- Consumables grew by 30% and printers by 20% during Q3
- Scope of improvement in consumable sales, it’s still not operating at optimum utilization
- Sales breakup this quarter: printers (20%), consumables (57%), services (13%), spares (8%)
- Haven’t passed on price increase to customers yet and are going slow on passing on price increases
- Pipe segment is the largest contributor to revenues
- Working aggressively on track and trace technology for pharma sector
- Markprint quarterly revenues: 0.5mn Euro (PAT was ~11% of revenues). Technology transfer has been delayed and will start in March 2023
- Have 350 engineers in sales and services, enough to cover current markets. Might need some specialized services people for custom client projects and a few for sales team
- Sales target for FY25 is 400 cr. (for standalone business)
- ICIPL has suffered more from supply chain issues as its positioning is for more economy cos. They have been unable to supply to lower end customers as ICIPL procures from Control Print and Control Print prioritized higher end customers. Might need to infuse some capital in ICIPL
- 5 more years of tax advantage for Guwahati
- In last 2-3 years, have added a new engine of growth (packaging sector) where earlier they were stronger in industrial segment
- 10 cr. investment in V-shapes SRL JV: high risk opportunity, they bring in new technology and if it works out, it will be a monopoly or at max an oligopoly. End market is pharmaceutical and expensive cosmetics
Disclosure: Invested (position size here, no transactions in last-30 days)