Incap's Q1 – in line with expectations

The Group's operating profit (EBIT) amounted to EUR 1.2 million, doubling on the corresponding period (EUR 0.5 million) and being approximately at the same level than on the previous quarter (Oct-Dec 2015: EUR 1.2 million). Net profit for the period amounted to EUR 0.7 million (EUR 0.6 million). The net profit was decreased by taxes, which amounted to EUR 0.4 million during the period (EUR 0.1 million). Incap Group's revenue developed favourably both in India and in Estonia. The revenue increased on the corresponding period in 2015 by approximately 47%. The revenue of the first quarter remained somewhat lower than on the preceding quarter, which is typical in the company's business sector. The quotation base is on a good level in both factories of the company, and there are new products coming to the production. The construction of the expansion of the production facilities in India has started on schedule, and the extension of approximately 2'000 square-meter is planned to be ready at the turn of the years 2016-2017. The construction costs of approximately EUR 1 million will be financed using operating income. New capacity is needed, because the export deliveries of the factory are increasing. The investment concerns specifically the export operations, which according to the Indian tax legislation have to take place in separate premises. There still is unused capacity in the production facilities for inter-Indian deliveries, allowing future growth, the company states in a press release. "The first quarter of the year has met with our expectations in all aspects. The construction of the expansion in the Indian factory has begun and the new production facilities are scheduled to be available at the end of the year. In our Estonian factory, the new ERP has been introduced successfully to efficient use, and now also there all resources can be focused on the service of our customers and on the development of production,” said Ville Vuori, President and CEO. “In order to ensure the long-term growth we will strengthen our sales operations both in Europe and in India. We will continue improving the operational efficiency among others by improving the cooperation between factories and enhancing the material sourcing," he continued.