Anil Jain, Managing Director and Bharat Vageria - Director (Finance) of the company addressed the call.

Highlights of the call

Q1 is the slowest quarter for the company in growth terms and value terms also.

For the quarter ended June 2017, it registered a 10% rise in consolidated sales to Rs 680.57 crore. OPM improved from 14.8% to 14.9% which saw OP rise 11% to Rs 101.50 crore.

PBT went up 14% to Rs 48.00 crore and PAT grew 12% to Rs 36.91 crore. Minority interest fell 47% to Rs 60 lakh after which net profit went up 14% to Rs 36.31 crore.

Sale Value grew by 10% led by volume growth of 12%.

Sales were impacted due to GST. Without GST domestic sales would have grown 12% and exports by 20%.

Interest cost fell 10% to Rs 21.04 crore as finance cost reduced by 69 bps (3.78% to 3.09%)

The company maintained total debt at Rs 720.4 crore as against Rs 722.1 crore in FY17. It reduced by Rs 1.7 crore.

Cash profit grew by 17%.

India & Overseas Revenue in June 2017 quarter were 68% : 32%. This is against 69% : 31%.

EBITDA margins in overseas and India are almost similar. EBITDA margins in overseas stands at 14.59% while in India it is 15.13%.

Net Profit Margin is more in overseas at 5.95% against 5.05% in India due to lower tax rate.

Net cash from operating activities in Q1 is Rs 45.0 crore.

In June 2017 quarter capex was Rs 46.4 crore

Regular & Maintenance Capex in June 2017 quarter was Rs 13.9 crore. Capex for value added products was Rs 32.5 crore.

Capex budget for FY18 is Rs 234.7 crore.

Value added products accounted for 17% of sales in Q1 against 14% in FY 2018. Rest came from established products. Value added products are expected to touch 18% of sales in FY 2018. 

Value added products grew 35.9% in Q1 to Rs 115.20 crore.

Established products grew 5.69% in Q1 to Rs 565.7 crore.

Its established products in Industrial Packaging are HM-HDPE plastic Drums/Jerry Cans and Pails. In Infrastructure segment are Polyethylene (PE) pipes, Prefab Shelters, Energy storage devices.

In Technical & Lifestyle its established products are Turf & Matting , Disposable Bins, Auto Products.

It has value added products like Intermediate Bulk Container (IBC), Composite Cylinders, MOX Film.

It is 3rd largest Intermediate Bulk Container (IBC) manufacturer worldwide.

It is 2nd largest Composite Cylinder manufacturer worldwide.

Also it has largest range of composite cylinder worldwide ranging from 2kg-22kg.

Some of its marquee clients are

BASF, Huntsman, Bayer , Aditya Birla Chemicals, Du Pont, Dow, Eco Lab, etc in Chemicals. In Petrochemicals its clients are Shell, Indian Oil, Gulf, ExxonMobil, Total, etc. In Auto, Ashok Leyland, Tata Motors, Eicher Motors, Volvo, Etc are its clients.

Other clients are Cargill, GE, L&T, Nestle, Wipro, Etc.

The company is the largest producer of large size plastic drums worldwide.

It is market leader in 8 out of 9 countries.

Capacity utilization is above 50% on run rate basis in the very first quarter of product launch of Mox Films.

The company did 100% enhancement of capacity for composite cylinders from 700K to 1,400K to meet growing demand and timely supply. Expansion is expected to complete by Q2-FY18.

The company commissioned 9,000 MT capacity for Double Walled Corrugated (DWC) pipes in June 2017 quarter.

Order for DWC pipes hand is Rs 800 MT.

The company has healthy Order Book of of 11500 MT which is Rs 140.0 crore for PE Pipe business.

Value added products had accounted for 11% of sales in FY 2015.

16000 composite cylinders were sold in Q1 and all was exported.

The company is looking at 80 crore sales for MOX films in FY 2018.

In Q1 the company sold 75 MT of MOX films.