Linc Pen impressive growth & profit for the fiscal 2008 - 2009
Linc Pen, one of the top players in the branded pen industry, today announced the financial results for the quarter and fiscal year ended March 31st March, 2009.
Financial Highlights for FY 2008-09
- Total Revenue for the year ended March 31, 2008 was Rs 190.75 Crore as against Rs177.23 crore of the last year, increase of 7.6%
- EBDITA increased to Rs 12.79 crores from Rs 11.80 crores, increase of 8.39%
- PBT increased to Rs 6.84 crores from Rs 6.00 crores, increase of 14%
The Board of Directors have recommended a dividend of 15%.
Commenting on the company’s performance, Mr. Deepak Jalan, Managing Director, Linc Pen & Plastics Ltd said “We have been able to achieve a growth of about 7.6%, which may be termed reasonable considering the general slow-down. So far bottom-line is concerned, the EBDITA was about 8% higher than the previous year, despite drastic increase in the advertisement expenditure. The Ad spend in 08-09 was increased to 7 crores as compared to less than 3 crores in the previous year, to help increase the brand awareness for long term benefits.”
Key Milestones in the last financial year:
- In keeping with its growth strategy, Linc has focused on overseas markets such as US, UK, South America, West Asia and neighboring countries such as Nepal, Myanmar & Bangladesh.
- The company has been able to able to maintain the export revenue same as of previous year, by opening newer international markets to offset the loss of revenue in the US.
- Linc has also strengthened its manufacturing capacity from 1.5 million pens a day to 2 million pens a day with an additional Export Oriented Unit at Falta.
- Linc Pen recently made a mark worldwide by applying for registration of its brand ‘Linc’ in 20 new countries including Thailand, Middle East, South America and Bangladesh. With this strategic move, Linc Pen will be one of the few Indian Pen brands to be registered in over 50 countries worldwide.
- The company’s export growth has not been marred despite the slowdown and it plans to touch Rs.50 crore mark in 09-10 through export revenue.
- Linc Pens is planning to invest 20 crore in capacity expansion to raise its manufacturing capacity from 2.5 million to 5 million pens per day by 2011-12.
- The company also plans to capture 15% of the Indian writing instrument market by 2010-11.
About Linc:
Linc Pen & Plastics Ltd. listed on the BSE & CSE is a premier manufacturer and exporter of quality writing instruments. Linc has established itself as one of the market leaders in the organized writing instrument industry in India.
ISO – 9001:2000 certified manufacturing units of Linc are located at two places in West Bengal – at Serakole and Falta. Linc clocked a turnover of Rs.190 crore in 2008-09. Recently, Linc Pen has also signed on Shah Rukh Khan as their brand ambassador and has unveiled and launched its advertising campaign with him.