Control Print - Deserves attention?

Good set of results with 20%+ sales growth and higher EBITDA margins due to higher consumable sales. My notes from concall is below.

  • Revenues were impacted due to supply chain problems (especially for semiconductors). Have been buying from spot market which increases costs by 40’000 per printer. Printers are generally sold at cost price, currently there is slight loss on sale of printers
  • Good traction in consumables as industrial activity improved, still don’t believe production is at optimal level (can generate 10-15% higher consumable sales)
  • Gross margin improvement was due to higher consumable sales
  • Most growth in last year was volume driven, pricing was only 5-6%
  • Focusing more on tele calling to increase lead conversion
  • Import constituent account for 25-30% of raw material
  • Printer: 18-19%, Consumables: 56-57%, Services: 22-23%, remainder mask division
  • Sold 750 printers this quarter (CIJ is generally at 65-70% of total printer sales) – installed base is >15’500
  • Markprint acquisition is to provide capability for higher end printers in order to meet customer requirements. Markprint has a printer base of 300 (making 1.5 mn Euro revenues per year and expect it to double in 2-3 years). They are into higher end printers. This will be the framework going forward, focus on acquiring capabilities
  • In China, 30’000 TIJ printers are sold annually vs India sales of 14’000-15’000. In addition, there are other kind of printers sold in China
  • Cement business declined a lot as customers didn’t care for quality of prints. This division had 3 lakh consumable sales per printer. As a result, consumable sales per printer has come down over time
  • Current sales mix is more towards the industrial side (~60%) vs packaging (~40%). This should come down to 55% for industrial side and 45% for packaging over time
  • Track& trace segment: currently revenues are negligible from this segment. Offering more customized capabilities to track each shipment and transitioning towards higher revenues from services
  • Field staff count was mentioned as 300+ vs 360 earlier. There is actually no reduction in field staff, company is actually looking at increasing field staff due to higher business expectations
  • Current capacity can cater to 300-350 cr. of sales, will require more warehousing space in Guwahati once they cross that
  • Capital allocation: Will keep 50 cr. in terms of liquidity + 50 cr. in terms of bank limit. Remainder will be given back to shareholders

Disclosure: Invested (position size here, no transactions in last-30 days)


Control Print Q1 FY23 Result Update!!!
Recent Acquisition of Mark Print B.V. in Netherlands proves to be a good strategic decision to increase revenue streams.


Reasonable results, with 14% sales growth 16% EPS growth. They are facing a few supply chain problems resulting in subdued sales for new printers. However, consumable sales are growing very well. Concall notes below.


  • Revenues were impacted due to supply chain problems where certain raw materials were purchased at higher prices to maintain sales. This has resulted in lower gross margins which will also be been in Q3 and continue till February or March
  • Control’s competitors had supply change issues earlier when Control had enough inventory and as a result they were able to gain more business. Now, competitors seem to have rectified their supply chain problems, and Control is facing supply chain issues resulting in nonfulfillment to a few customers
  • Consumable sales increased 29% YOY (vs 10% growth in revenues)
  • To counter inflation, planning a price increase. They give 3-4 quarter notice to customers about price increase. Price increase should start contributing from Q4 and will fully reflect by August 2023
  • Dairy segment grew by 20%+. Expect good growth from pipe and sugar sectors in Q3
  • Launched a new TIJ printer called Pench
  • Guwahati consumable capacity utilization is 40-50%, no need to spend capex to increase capacity
  • Laser printer exports: Supplied to a large co-packers in consumer sector in Indonesia. This was the first orders which has established their base, and they feel going forward, it opens other regions for export of laser printer
  • Sri Lanka resumption: Oligopoly market (4-player). Don’t want to leave that market, plan is to service existing customers. Converted pricing to USD based. Will not infuse fresh capital, will just service existing customers for the time being
  • Mask contribution is ~3%

Disclosure: Invested (position size here, no transaction in last-30 days)


I had published a short post on this company on BLOG covering background, revenues, margins, capital needs, valuation, etc.
Since a lot of these points are already covered in this thread, I am sharing the valuation section, capital allocation issues and my personal thoughts sections of the above post here in the hope that it useful to members. In case it isn’t, feel free to report the same and get it deleted

PART I: DCF Valuation

  • Lets assume that the company reaches its target of Rs 400 crores turnover by FY25 (on standalone basis). This implies a y-o-y growth of 16% from FY22. Lets also assume that it gets its desired EBIT margin of 21%. Lets also take the company’s words that they do not need any capex until this 400 crores turnover. What to do thereafter?
  • I have put my positive thinking cap on and have taken these assumptions for more years. I have assumed that the company continues the aforesaid 16% growth for a total of 5 years (i.e. Until FY27), and thereafter it moderates to around 6% by year 10. This implies that by Year 10 the company will have a revenue of Rs 856 crores. Lets do a sanity check on this revenue projection. The current organized market is around Rs 1200 crores. If this market grows a CAGR of 12% y-o-y for 10 years it will be Rs 3727 crores by then. Thus, at Rs 856 crores, the company will have a marketshare of 23% (current marketshare around 18%). Hence this revenue projection, while optimistic, is not in the improbable territory.
  • For the reinvestment needs I have not considered any capex until 400 crores and thereafter projected it at a FAT of 4.25. For the working capital I have assumed a turnover of 2.1 given the high working capital intensity of the business.
  • For the terminal value I have retained the high margins of 21% as well as the above FAT & Working Capital turnover and thereby preserved a high ROIC of 22% and taken a perpetual growth rate of 6%.
  • Thereafter, I have added back investments, cash book value of land of liberty chemical and other small items
  • Lastly, I have used a discount rate of 13%

With these optimistic assumptions, the DCF yields a value of 455/share which is very close to the CMP (around 430). What this means is that we will earn a CAGR virtually equal to the discount rate of 13%. Now, you will note that this result is with fairly positive assumptions built-in

PART II: Multiple Based Valuation:

Lets assume that you do not believe in DCFs and consider them BS. From a multiple perspective, as per screener, the market is giving them a PE of 16 (TTM basis) as of now, which is around its average of 15. It would be fair to say that the market has already considered some growth prospects in this company. Now by FY25, if we expect sales to become Rs 400 crores and EBIT margins to be 20% with a tax rate of 18% (MAT rate applied due to hilly region benefit) we get Rs 65 crores of Profits in March-2025.

Now what multiple to apply for March-2025? If we take a multiple of 15 and divide by the share count we get a result of Rs 602/share i.e. a good CAGR of around 14.5%. However, we expecting things to be perfect. We expect that the company will deliver the promised growth & margins and are also expecting that the market will continue to give a multiple of 15. Do some sensitivity analysis on growth, margins and multiples and check whether if it fits your margin of safety & return expectations. If it does then you can invest at this price too

Some IMPORTANT things to be aware prior to investing in this company:

  • Commission to directors: In addition to salary, the directors draw a commission. It was Rs 3.50 crores in FY22, Rs 2.60 in FY21 and Rs 1.70 crores in FY17. This could be ignored if it was in isolation. However, there other bigger things below
  • Capital allocation history is not great
    • Promoters also have a strong fancy to DIRECTLY invest in stocks. In FY22, this amount is Rs 39.31 crores which has increased from Rs 11.96 in FY17. Obviously some portion of this increase is attributable to the increase in value of the investment but still it is a large amount. Moreover such kind of equity investments are being done since the past decade! There is also an investment of Rs 0.5 crores in in Artha ‘Venture’ Fund along with a commitment of another Rs 0.5 crores (shown in contingent liability)
    • Real Estate Diversification
      As per FY11 AR, “Your Company has entered into a MOU with M/s. Liberty Chemicals Pvt. Ltd., in the month of August, 2008, towards purchase of its property and a sum of ` 1,35,00,000/- was paid as advance. Subsequently the Company has acquired all the shares of M/s. Liberty Chemicals Pvt. Ltd., in the month of April, 2011 after considering the assets and liabilities of Liberty Chemicals Pvt. Ltd”.
      As per FY12 AR, the company invested another Rs 3.70 crore in the above subsidiary by way of rights issue. As stated in the AR “the acquisition would enhance shareholders value since Liberty Chemicals Private Limited owns a plot of land as a valuable asset. Control Print Limited intends to explore diversification in real estate business in future post feasibility study on its plans.” The aforementioned land located in Chandiwali, Mumbai is still with the company. While one cannot put a value to this real estate investment without further details, it is fairly safe to presume that the company will earn a profit (atleast on an absolute basis) on this investment since it was done way back in 2008. Will the profit exceed the time value of money on the investment made? When will the sale/development happen? Will the company distribute the proceeds to shareholders too? We cannot know as of now.
    • The Promoters spent Rs 10 crores on the mask division in FY21 (as per Conf Call 26.4.21). However, as stated in various Conf Calls, this division is not central to their operations and they did it “basically in the pandemic period for the society and the CSR activity”.

All said and done the above shows the attitude of the promoter to invest company’s funds in different ventures. While the company has paid dividends, it is not to extent of the FCF generated by the company. However this attitude appears to be changing for the better. In the Conf Call 26.10.22, the company said:
“The board has decided that INR 50 crores is what we’ll keep as cash on books, including whatever investments, cash,bank balance, whatever form of liquid investment,how you’re going to term it, and we have our limits for any acquisition or other opportunities that come…….”
“And whatever more than INR50 crores the board has said that we will largely return back to the shareholder”

If you want to believe in what the management was stated, you can addback 50 crores to the assets. Consequently the Fixed Asset Turnover of the company will reduce and you can project the fixed assets requirements accordingly.

  • The company has a contingent liability payable to Videojet. Pursuant to an appeal made by the Company against an Arbitration Award, the Bombay HC Order had ordered an amount of Rs 2.30 crores to be deposited by the Company (Click here). The company has duly furnished a BG of that amount. I am no legal expert but upon reading the order a liability of Rs 2.30 crores looks likely. However BGs of this sort and that too to a High Court nowadays are not given by banks without corresponding cash/security collateral (sometimes to the tune of 100%) and hence this amount (in all likelihood and IMHO) may not have any impact from an ‘actual cash’ perspective since the company has already furnished the BG to the Court but will impact the P&L statement if & when the company loses the appeal.

  • P&L Statement shows inventory write-downs in several years (See: Exceptional items of these respective years). Rs 3.95 crores in FY21, Rs 6.12 crores in FY18, Rs 5.39 crores in FY17 and Rs 0.72 crores in FY15
    Are these ‘exceptional’ items really ‘exceptional’? Need to do more digging in inventory (& also receivables) to get some context. I haven’t done it because the valuation (without considering the above) was already was too high for me

Some personal thoughts

I could have ignored most of the negative factors IF the stock price was lower. However, at the current price (around Rs 430/share), its a little difficult for me to ignore them as it cuts MY margin of safety. I believe that when a company does not share the proceeds with shareholders or is not a good capital allocator, our returns are more dependent on the moods of Mr. Market and/or the company meeting or exceeding the growth expectations especially since the margin of safety is not sufficient. Moreover, no investment can be seen in isolation and one must see what returns/risks their alternate investment options offer. Hence I have chosen to pass this one (for now).

On the other hand, lets not forget that the company is showing great sale of printers, has shown good growth in consumables, is showing better margins, is doing the right kind of acquisitions and has made a cap of Rs 50 crores on investments/cash. It could also enjoy a tailwind of higher industrial growth which leads to higher industrial output which in turn leads of higher sale of consumables. Thus, there are quite decent chances that not only the company achieves its revenue target of Rs 400 crores on standalone basis by FY25 but also exceed it. There is also a possibility that the Chandivali land gets sold/developed & gives good profits and/or that is YOUR margin of safety. Maybe the new acquisition done by the company does very well. Maybe Mr. Market continues to give the current multiple & more to the company even in the future. Maybe your margin of safety and return expectations defer from mine.

I have also been overly conservative in such situations in the past and thus it could be that even for this situation my conservatism is (unconsciously) showing up again. Obviously, my views are (and should be!) subject to change based on new data and stock price.


Control PR Q2 FY23 Result Update:

  • Installed base of printers: 15500+
  • Quarterly Run Rate of Revenue 650mn+ maintained
  • Lower availability of semiconductors has impacted sales.
  • Higher sales of consumables and share increased in revenue led to better margins during the quarter.
  • WC improvement continues to be focus area.
  • Gross margins/EBITDA margins maintained above 60% and 23%.
  • Low Tax rate due to tax concessions at Guwahati.
  • Rising momentum in manufacturing activities as there was higher requirement for consumables.
  • Consumables business grew 29% YOY.
  • Printer sales were on the lower side due to RM shortages. Trying to mitigate the risks in supply chain.
  • Gross margins dropped QOQ was due to RM supplies bought at a higher rate.
  • Increase in market share by increase in customer competitive accounts
  • Consumables has seen an increased traction in installed base.
  • Mark Print BV Netherlands: Acquired 75% stake via a subsidiary
  • Dairy & Cement segment are showing growth in business.
  • Piping segment still remains the leading industry in this business.
  • In Q3, they are expecting good volumes from piping and sugar industry.
  • Other income mainly includes dividend income.
  • Guwahati Facility Consumables Utilization Level: 50-60%
  • Employee cost increased due to salary revisions
  • Industries are in the growth phase so consumable sales will increase in H2.
  • Expecting some products of Mark Print to be introduced in India by Nov, Dec 2022. Results of the same should be seen in FY23.
  • Want to keep INR 50 crores as cash. And the rest will be returned to shareholders.
    Orders Received:
  • Breweries sector eyeing more sales of TIJ Printers.
  • Large export order for laser printers in FMCG sector.
  • Pipes sector & sugar industry sees increased customer penetration.

Good to see company venturing in Africa.


Another very good set of nos, with 25% sales growth and 48% EPS growth. Concall notes below


  • 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)


Hi @harsh.beria93 I am new to this company. I have question.

If the total industry size is 1200cr for organised players and there are four players. For the sake of simplicity let’s divide the market size evenly between the four players each one will have a market of 400cr.

That’s a very small market size IMHO and company will find it very very difficult to grow in future at present TTM sales growth of 22%.

What’s your take on expected future revenue growth of company?

Thank you for your time in advance.


Hi Gaurav,

Coding and marking is a niche industry and Control Print has a strong positioning within it. Management has mentioned that the industry grows at 1.5x GDP growth. I have collected market sizes over years from different reports.

Indian market size:

  • 900 – 1000 cr. (FY16)
  • 1200 – 1300 cr. (FY19)
  • 1300 – 1500 cr. (FY22)

Growth comes around 6-8% from FY16-22. However, I dont think this is correct as Control Print has grown sales at 11% over this period, despite maintaining similar market share. Please look at market share numbers for Control Print over years.

Indian Market share

  • FY15: Domino (32%), Videojet (30.1%), Markem-Imaje (19.9%), Control Print (18.1%)
  • FY21: Control Print (18.5%)
  • FY22: Control Print (18.5%)
  • FY23Q3: Control Print (19%)

FMCG companies like HUL and Nestle have grown their sales at 7-8% over this period (FY16-22). The basic logic behind higher growth in marking and coding industry is that there are more things printed on packaging products over time and that should mean that ink sales growth should be higher than FMCG sales growth. We also see this in Control Print’s growth, where they have grown at 11-12% vs FMCG cos growing at 7-8%. It also kinds of add up with management’s claim of 1.5x GDP growth.

Now coming to the recent spurt in growth, we can see that there has been a recent spurt in printer sales.
Number of installed printers: 5’000 (FY15), 7’000+ (FY18), 13’000 (FY21), 15’000 (FY22), 16’500 (FY23Q3)

Since FY18, installed printer base has more than doubled with sharp growth happening in FY21-23 period. This was because Control Print launched TIJ/TTO printers which are used in the packaging industry, where Control Print had lesser presence. Management has also been mentioning that they are not only winning new business, but also winning competitor’s accounts. Also, they have become much more aggressive in pursuing growth opportunities (launch of lower priced printers for economy segment through ICIPL, going into software solutions for pharma industry through track & trace technology, more export focus, Markprint acquistion, JV with V-shapes SRL, etc.). All this suggests to me that management has become more growth hungry. The good thing with this business is its asset light nature meaning a large part of profitability comes as dividends. Recent spurt in growth is an extra bonus.

Disclosure: Invested (same as before)


  • Gross/EBITDA margins have still scope to improve but 60% and 26-27% are sustainable.
  • Standalone Revenue Target of Rs. 400 crore still intact for FY25.
  • Consumables and Printers Business can still grow substantially as Production Capacities of Customers gas not been at optimum levels.
  • Margins have seen a bit of pressure to high raw material price purchases in the spot market to even out shortages which should get back to normal.

Interesting interview with the promoter and joint MD, Shiva Kabra. Gives good insights into the origin of the business, how did he join the business, his thought process as an enterpreneur and how he sees some of the future of Control Print.


Can you clear up how this is an asset light business when it manufactures machines ?

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


  • 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)


- Quarterly threshold of Rs. 800+ mn revenue crossed during the fourth quarter.
- Consumables sales continued to be steady leading to overall EBITDA margins above 23.7% during the quarter and 25.5% for the year.
- Building Material sectors has continued to see growing traction as infrastructure is promoted very highly.
- Gross margins maintained above 60%.
- Increase in share of revenue from consumables and focus on capturing larger market share with increasing installed set of printers.
- New launches and demand from the replacement market would also be key growth drivers in the coming period.
- The installed base of printers is currently at 17000+ against 16000+ as of December 2022. The company sold 950+ printers during Q4FY23 against 800+ printers in Q3FY23 and 675+ printers in Q2FY23.
- Consumables segment contributes 55-60% of sales while the printers segment contributes 15-20% of sales and the balance is contributed by the services & spares segment.
- Capacity utilization has been more than 60% for consumables segment.
- 10% growth for consumables is easily achievable.
- 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
- ICICI Direct suggests a BUY with TP of Rs. 690. FY24 EPS is suggested at 39.2 and revenue at 348 cr.

Management of the Company had one on one meeting with SBI Mutual Fund today, 20th June 2023.

AR23 notes
Domestic market share: 19% market share


  • Next generation CIJ printer – Pench
  • Indigenously adopted technology of Manufacturing the Laser Printer at Nalagarh Factory. Now company has CO2, Fibre Printer in product range for Printing of Metal, Carton, PET Bottle and Containers etc.
  • Development of 230 ml. Maxi Cartridge is completed. The serial production and commercial sale has started. This is Unique Model in present Market and the Company is obtaining the IP Rights for this Product.
  • Through partnerships with various R&D firms and in-house development initiatives, company has gained ownership of crucial technologies such as Thermal Inkjet (TIJ), Drop-on-Demand Valvejet, and Piezo Dropon-Demand Inkjet technology
  • R&D spends: 2.36 cr. (all expensed out)


  • Small Character Printer (SCP): Continues to increase its installed base in all major industry verticals like Dairy, Pipes, Wire & Cable, Steel, FMCG, Food & Healthcare
  • Laser business continues to expand with improvement of product technology, especially the fibre laser
  • Large Character Printer (LCP): Grew significantly in non-cement business like Plywood, Steel & Metal, Building Material.
  • Impressive growth rates were registered by Thermal Inkjet Printer (TIJ), High Resolution Printer (HiRes), company is getting good leads for replacement of other market printers
  • Coding and marking industry in India is expected to witness 9.85% CAGR growth from FY21 (1936 cr.) to FY27 (3403 cr.)
  • Recently, Indian Government added a new requirement for QR codes on domestic and imported Active Pharmaceutical Ingredients (APIs) further driving the need for an industry specific solution. They offer regulatory compliant solutions to print information and identification codes on packaging
  • Established in-house software team to offer traceability solutions for pharmaceuticals, food & beverages, and consumer goods to monitor their supply chain (from origin to consumption) to ensure the quality and safety of their products
  • V Shapes SRL JV formed in December 2022 to offer eco-friendly single dose sachets and packaging machinery, expanding beyond coding and marking. V Shapes produces packaging with ‘Snap and Squeeze’ technology, allowing for easy opening without cutting or tearing
  • Acquired 75% stake in Markprint BV (1.5mn euro), a prominent provider of high-speed printing and coding solutions, to expand reach in the European market. Useful for high-quality single-pass printing for packaging and industrial applications. Resulted in 9.7 cr. goodwill
  • Innovative Codes: Revenues: 7.89 cr., PAT: (-0.09 cr.)
  • Subsidiary financials
  • Mr. Jaideep Barve appointed as new CFO w.e.f. 1 August 2022
  • 300+ sales and service field workers spread throughout 9 branch offices in India and 1 branch in Sri Lanka
  • Reconsidered and decided to continue Sri Lankan operations for servicing existing installed printers, providing consumables and foreseeable opportunities
  • Exports to 12 countries Sri lanka, Bangladesh, Nepal, Bhutan, Kenya, Italy, Tanzania, Germany, Indonesia. Company has exported components used in Printer Manufacturing to its Technology Partners KBA-Metronic in Germany. Company has also started exporting components to KBA Metronic Plant in China
  • Forex outgo: 70.92 cr., forex earned: 9.31 cr.
  • 767 permanent employees (81 contractual employees vs 62 in FY22)
  • Median remuneration of employees
  • Contributed 1.63 cr. towards CSR (1.63 cr. more than required)
  • Contingent liabilities: 6.56 cr. (IT demand)
  • Investment in shares: 52 cr. (vs 39.31 cr. in FY22)
  • Receivable provisioning (increase in write-offs in past 2-years)

  • Other expenses breakup

Disclosure: Invested (sold shares in last-30 days)


U sold out, correct? What would make you buy back in? Valuations only?

Control Print Buyback 2.03% at Rs 800


Results seem flatish - Current tax under Tax expense seemed to have increased.

I beg to differ. Result is not flattish. Result should be compared YOY and not QOQ, as Q4 result always distorts the picture being year end figure. YOY result is good on the basis of both topline and bottom-line. Actually profit before tax is much better. Q1 and Q2 are generally dull for the sector and Q3 and Q4 is much better. So it is heartening to see the company maintaining tempo. Further clarification can be obtained from con-call.