Another good set of nos, with 15% sales growth and 29% EPS growth in this quarter. In FY23, co grew sales by 19% and EPS by 31%. Concall notes below
FY23Q4
- Market size: 1800-2000 cr. with 1400-1500 of sales being done by top 4
- Printer base increases to 17000+ (sold 950 printers in Q4 vs 814/675/750 in Q3/Q2/Q1)
- Operating at 60% utilization for consumables
- 10% growth for new printers should be easily achievable
- Markprint integration has gone slower than expected. PAT margin is around 15%, they have enough financial resources for their own expansion plans
- Capex requirements are not high, its largely covered from depreciation costs
- Average life of printers is 8-12 years as its higher for certain categories, price ranges from 1-4.5 lakhs/printer
- Supply side issues have been 80% resolved
- In the presentation, its mentioned that new products are being introduced for industrial and non-industrial verticals. These are specialized printing products, e.g. customized products with the plywood sector to give better branding (track & trace for other sectors). Currently at nascent stage
- Sri Lanka: Regrouped team, sales are currently low
- 10 cr. goodwill due to Markprint acquisition, and it will be amortized over 6 years
- ICIPL: 8 cr. revenues (target is 13 cr. in FY24), made cash profits of 30 lakhs. Reported losses due to depreciation costs
- Royalty: Agreement is until 2026, so won’t change. Royalty as % of sales should decrease with further ramp up of TIJ/TTO printers
- Dairy has become a big vertical, haven’t had the same traction on pharma. Getting more traction in pharma with track and trace technology
Disclosure: Invested (position size here, no transactions in last-30 days)