Time Technoplast –
H1 andQ2 updates –
A leading manufacturer of Polymer and Composite materials based storage and other products ( like HDPE pipes, auto components etc )
Strong presence in Asia, MENA regions
Marquee clients include – DuPont, IOL, Gulf Oil, ExxonMobil, Bayer, BASF, Huntsman, GE, L&T etc
Product basket includes –
Polymer based – drums and containers, Jerry cans, Energy storage devices, auto components
HDPE pipes
Composite material based – IBCs (intermediate bilk containers), Composite cylinders, MoX films
H1 financial performance –
Sales- 2274 cr, up 16 pc. Volume growth @ 18 pc
EBITDA- 315 cr, up 22 pc (margins @ 13.9 vs 13.1 pc)
PAT- 126 cr, up 34 pc
Cash Profit – 219, up 23 pc
Share of value added products has gone up from 23 pc (last yr) to 25 pc this yr
Sales for IBCs and composite cylinders grew by 110 pc in H1 vs LY
Segmental performance –
Polymer product sales – 1481 vs 1306 cr, up 13 pc
Composite products sale – 792 vs 661 cr, up 20 pc
H1 capex @ 100 cr. out of this, 40 cr spent towards legacy products. Additional 60 cr spent towards IBCs and Composite cylinders
Other comments –
Demand for HDPE pipes being mainly led by Govt schemes like Har Ghar Jal, Swachh Bharat, Infra spending
Demand for IBCs led by private capex – both brownfield and greenfield. Exports to emerging economies are also doing well
Composite cylinders (LPG) demand being fuelled by PM Ujjwala, orders from IOCL etc
Company receiving overwhelming demand for CNG composite cylinders. These can also be used to store liquid Hydrogen. Fresh Capex initiated for CNG composite cylinders
Composite CNG/LPG cylinders can be a 2000-2500 cr business in 3 yrs time !!! Company commands a mkt share of 75 odd pc in India
IBC business should grow at rates > 15 pc for next couple of years
Aim to reduce Debt by 150 cr via internal accruals (not factoring in the sale of International assets ). Company likely to sell its non core overseas assets this FY. Money received shall be used to further reduce debt and other business purposes. Expected to receive around 1000 cr from the same
Share of value added products to cross 35 pc in next 3 yrs. Once this happens, EBITDA margins should cross 15 pc
Total business likely to cross Rs 5000 cr this FY as second half is always stronger
Disc: holding, Biased, not SEBI registered
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