Time technoplast

Another solid set of nos, with sales growing by 14% and EPS by 41%. They are very confident of maintaining 15%+ sales growth and becoming debt free in next 3 years. Concall notes below

FY25Q1

• Revenue growth of 14% in Q1 (12% in established + 19% in value-added), volume growth of 16%. Targeting 15% growth in next 3-years

• Capex: 39 cr. (18 cr. in established + 21 cr. in value added). Will be ~150 cr./year for next 3-years totaling 450 cr.

• Debt reduced by 38 cr. in Q1. Will become debt-free in 3-years

• Working capital reduced to 100 days and should further reduce to 85-100 days in 3-years

• Middle east divestment proceeds will be realized in 60 days

• Non-core divestment: Realized ~30 cr. and targeting to realize ~60 cr. by end of FY25 totaling to 90 cr. in FY25

• Import: on CIF basis, 60% RMs are imported (mostly from Middle east) and 40% are domestically procured

• Export: only exports LPG composite cylinders, contributes ~2% of overall sales

• International business: manufacturing is mostly done in the respective countries (30% MENA, 50% Southeast Asia, 20% USA)

  • MENA: plants in Sharjah, Bahrain, Saudi and Egypt

  • Southeast Asia: plants in Thailand, Malaysia, Indonesia, Vietnam and Taiwan

  • USA: 3-4 plants in Chicago, Austin, IOWA

• Expecting 450 cr. CNG in FY25 (vs 308 cr. in FY24)

• LPG is operating at 90-95% utilization, can do revenues of 230-240 cr. at current state (210 cr. done in FY24)

• CNG cylinders for OEMs: will focus on commercial vehicles, it’s a 2-3 year process

• EBITDA margins in LPG and CNG segments are ~18%

• Solar contributing 10% of their energy which should increase to 30% by FY25 end

• Pipe plants: 4 manufacturing plants, 1 in Silvassa for western region, 2 in South India (one in Hyderabad and second in Gummidipoondi), 1 in Kolkata for east. Business done through 10-15 EPC contractors (e.g. L&T, Indian Home Pipe Voltas, JSW)

• 92% business is B2B and 8% is B2C

• NED Energy (based out of Hyderabad) is developing Transparent Container Batteries (TBS; used in railway). Have invested 65 cr. and hoping to reach revenues of 250-300 cr. in 3-years

Disclosure: Invested (sold shares in last-30 days)