Time technoplast

Time Technoplast –

Q4 and FY 24 results and concall highlights –

Q4 outcomes –

Sales – 1394 vs 1192 cr, up 17 pc ( volume growth @ 19 pc )
EBITDA – 197 vs 170 cr, up 17 pc
PAT – 94 vs 65 cr, up 45 pc ( due lower interest costs due debt reduction )

FY 24 outcomes –

Sales – 4992 vs 4289 cr, up 16 pc ( volume growth @ 18 pc )
EBITDA – 705 vs 581 cr, up 22 pc ( margins @ 14 vs 13 pc )
PAT – 310 vs 220 cr, up 41 pc
RoCE @ 16.4 pc. Aim to hit 20 pc RoCE in next 2 yrs time

Growth in value added products @ 32 pc vs growth in regular products @ 12 pc in FY 24. Growth in value added products accelerated to 48 pc in Q4

Reduced debt by 117 cr in FY 24. Net Debt ( net of cash ) now stands at 591 cr. Aim to be debt free in next 3 yrs time

Segment wise sales –

Regular products – 3724 cr, up 12 pc

Regular products include – packaging products ( drums, jerry cans ), Auto components, batteries business, PE pipes, urea tanks, composite air tanks, hydraulic tanks

Value added products – 1281 cr, up 32 pc. Value added products now contribute to 25 pc of company’s sales

Value added products include – Composite IBC ( intermediate bulk containers ), composite cylinders for LPG, CNG and MOX films

Guiding for a 10-12 pc growth in regular and 30 pc growth in value added products for next 3 yrs. This should take the total contribution from value added products to 35 pc of company’s sales from 25 pc currently

India : Export business split @ 67:33

Capex for FY 24 stood at 180 cr. Out of this, 110 cr was spent towards value added products and the rest towards brownfield expansion in regular products

Have identified non-core assets of aprox 100 cr to be sold before Mar 25. Funds to be used to fund capex / reduce Debt

Have received approval for their prototype – high pressure composite cylinder to store and transport Hydrogen. Company expects to get manufacturing orders for these in next 2-3 months. Time Technoplast is the first company to get this approval

Future growth triggers for composite cylinders ( that are lighter and can store more gas per unit volume ) include – replacing Automotive metal CNG cylinders with composite cylinders, supplying composite cylinders to new CBG plants that are being put up across the country. All this shall materialise once company expands its current composite cylinder manufacturing capacity

Company expects the interest cost for next FY to fall to 70 cr vs 101 cr for FY 24

Company also makes telecom sector batteries, solar batteries, railway signal batteries, industrial batteries. Company expects to be ready with E-Rikshaw batteries within 6 months

Guiding for a blended volume growth of 15 pc for FY 25 with incremental EBITDA margin expansion

Disc: holding, biased, not SEBI registered