Incap's expansion yields results - now its time to expand again

In January-September 2019, both revenue and profitability improved. Revenue improved by 29% compared to the corresponding period a year ago and amounted to EUR 54.8 (42.5) million. The company says that revenues improved thanks to the growing demand from established customers as well as increased volumes from new customers. During the period, Incap managed to broaden its customer base especially in light vehicles, IoT and industrial electronicsapplications. Revenue for the third quarter of 2019 amounted to EUR 17.6 (15.5) million, which is slightly less than in the earlier quarters of 2019.

Otto Pukk - © Incap

“The revenue increased mainly thanks to the growing demand from our established customers, and especially in the earlier part of 2019, from the increased volumes for new customers,” says Incap president and CEO, Otto Pukk in a press release. Operating profit (EBIT) in January-September 2019 was EUR 8.0 (5.5) million and profit for the period totalled EUR 6.1 (3.9) million, this represents an increase of 45% and 56% respectively compared to the same period last year. EBIT for the third quarter of 2019 was impacted by EUR 0.2 (0.0) million non-recurring costs relating to business development. Operating profit (EBIT) was EUR 2.2 (2.4) million. The company credits the stable business growth to the expansion of its production facility in India and the development of the production lines in Estonia. However, the company has already decided on further increases in its production facility in India and to upgrade its production capability in Estonia. “After the exceptionally good first half of the year, I see that the net growth will continue but growth percentages are going back to more normal levels moving forward as the size of the business has grown. Considering third quarter is also holiday & vacation season, I´m happy how the quarter turned out,” Pukk continues. In order to improve the company’s production capabilities, Incap has decided to increase the production facilities in India and expand the rental contracts for the Kuressaare facility in Estonia. “In Tumkur, India, the development actions are made into the expansion of the production facility from 8,640 sqm to approximately 12,500 sqm. This expansion is expected to be completed by spring 2020,” Pukk explains.