Linc Pen

This Kolkatta based company, one of the top 3 writing instruments manufacturers in India, commanding a pan-India market share of about 10%, with the largest share in the East Indian states, posted a stable performance for Q1FY16. Revenue for the quarter grew 8% (YoY) at Rs.79 crore and exports showed a 12% rise. Exports contribute to over 22% to total revenue earned. Linc increased its advertisement spend by 105% during the quarter to Rs.3 crore. EBITDA margin remained flat at 8%.

During the quarter, Linc improved its working capital management further, though marginally and reduced its working capital cycle (inventory and debtors days) from 121 days of turnover equivalent in Q4 to 116 days in current Q1. The company continued its focus on the value-added segment (writing instruments priced Rs.10 and above); sales of this segment grew 18% (YoY). Linc expanded its Southern India presence through various initiatives; there was a 25% sales growth from this geography.