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

Highlights of the call

For the quarter ended September 2017, it registered a 11% rise in consolidated sales to Rs 742.77 crore. OPM improved from 14.9% to 15.1% which saw OP rise 12% to Rs 109.37 crore.

India revenues grew 9%. Overseas revenues grew 12%.

Volumes grew 13%. India volumes grew 11%, overseas volumes grew 15%.

PBT went up 18% to Rs 56.60 crore. Net profit went up 18% to Rs 41.97 crore.

For the six months, consolidated sales grew 10% to Rs 1405.34 crore. OPM improved from 14.8% to 15.0% which saw OP rise 12% to Rs 210.87 crore.

PBT went up 16% to Rs 104.61 crore. Net profit went up 16% to Rs 78.280 crore.

During the quarter Polymer Products contributed 70% of the total revenue. Revenue grew 10% to Rs 508.06 crore. PBIT grew 8% to Rs 54.07 crore and accounted for 80% of total

During the quarter Composite Products business accounted for 30% of the total revenue. Revenue grew 13% to Rs 216.71 crore. PBIT went up 13% to Rs 22.85 crore and accounted for 30% of total

For the six months, Polymer Products contributed 71% of the total revenue. Revenue grew 9% to Rs 994.82 crore. PBIT grew 6% to Rs 103.98 crore and accounted for 71% of total

For the six months, Composite Products business accounted for 29% of the total revenue. Revenue grew 13% to Rs 410.52 crore. PBIT went up 10% to Rs 41.62 crore and accounted for 29% of total

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

It is market leader in 8 out of 9 countries.

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

It is 2nd largest Composite Cylinder manufacturer worldwide

It has largest Range of composite cylinder worldwide (2kg-22kg).

The company has 900 + Institutional customers globally.

It has 14 + Recognized Brands. 

India EBITDA margins for six months stood at 15.27% & Overseas EBITDA margins stood at 14.57%. The same were 15.16% & 14.30% respectively in FY2017.

Finance cost reduced 67 bps from 3.65% to 2.98%.

The company maintained total debt in H1-FY18 at Rs 718.6 crore as against Rs 722.1 crore in FY17.

Net cash from operating activities in six months stood at Rs 116.9 crore.

Capex for the six months stood at Rs 108.8 crore.

Capex budgeted for FY18 is Rs 234.7 crore. Out of this regular & maintenance capex will be Rs 31.5 crore and capex for value added products will be Rs 77.3 crore.

Value Added Products accounted for 18% of sales in H against 14% yoy.

Overall Capacity utilization stood at 81%. India Capacity utilization stood at 86% and Overseas Capacity utilization stood at 69%.

During the six months, 9,000 MT capacity of DWC Pipes was commissioned and order execution started.

PE Pipes has healthy order Book of around 12,500 MT amounting to around Rs 150.0 crore.

For composite cylinders, expansion for enhancement of capacity from 700000 to 1400000 has been completed. The approval process is going on & is excepted to complete by Q3 FY18.

IBCs: Brownfield expansion at Overseas location of Vietnam and Sharjah has been completed and has started production in Q3 FY18.

Since the launch in Q1 MOX films, sales have been growing consistently.

For MOX films, the company has appointed more than 150 dealers across the country and set up of Fabrication facility at 5 locations (Silvassa, Hosur, Hyderabad, Baddi and Pantnagar) for timely delivery.

MOX films capacity utilization is above 70% on run rate basis in the very first half of product launch of MOX films.

ROCE to improve by 1% by the end of FY 2018.

For value added business its margins is close to 17.5%.

Raw materials prices are expected to remain stagnant for the rest of the year.

EBITDA margins are not expected to jump significantly. It will stabilize around 15-15.5% range.

The growth rate is expected to accelerate in second half.