Incap sees growth across the board - despite shutdowns
In May–June, the EMS provider had to close its factories in Tumkur, Karnataka as the local government implemented stricter measures to curb the spread of the coronavirus.
It was on the tenth of May that the Incap first announced that it had been forced to close its factories in Tumkur. Fifteen days later, the company was granted permission to continue operations - at least in part - to support the manufacturing of critical electronic equipment including applications for healthcare. Revenue during the second quarter of 2021 amounted to EUR 33.6 million, an increase of 49% from EUR 22.6 million during the same period last year. Operating profit (EBIT) increased by 103% and amounted to EUR 4.3 million, compared to EUR 2.1 million for the same quarter in 2020. Profit for the period ended up at EUR 3.2 million, up from last year's EUR 1.2 million, the company reports in its second quarter report. While the EMS provider is reporting growth across the board, it is also open about the fact that the closure in India in May–June 2021 and other effects related to the pandemic had a negative impact on revenue growth and profitability. "The global component availability situation is still challenging due to the growing demand, albeit as an EMS supplier Incap is less dependent on single component types. We are nevertheless already seeing early signals of the component situation improving towards the end of the year and early next year," says CEO Otto Pukk, in the report. Back in May the company decided to make yet another investment in India, which would result in a third factory in Tumkur, Karnataka. The construction is currently planned to start in the third quarter with the opening of the new factory expected to place in the second quarter of 2022. "Looking at the remainder of the year, we see a lot of positive development as many of our existing and potential customers’ businesses are growing in sectors supported with megatrends. Incap has a strong role in enabling our customers to achieve their targets. We are thankful that Incap is well positioned in the market, has a strong market share and is able to support our customers’ growing businesses," the CEO concludes.