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

Highlights of the call

Time Techno has emerged as a formidable player in the polymer space, with a product repertoire that caters to diverse segments like Industrial Packaging, Infrastructure, Lifestyle, Healthcare, Composites and Auto Components related products.

It focuses on replacing metals with polymers in high performance areas using innovation and latest technology.

Time Techno services wide spectrum of user industry in each of its business verticals, reducing sectorial risks and tapping new opportunities for growth.

It has presence in India, Thailand, Taiwan, Indonesia, Vietnam, Malaysia, UAE, Bahrain, Saudi Arabia & Egypt.

It is market leader in 8 out of 11 countries.

It 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.

Q1 sales grew 11%. India revenues grew 12% and overseas revenues grew 10%.

Q1 volumes grew 14%. India volumes grew 14% and overseas volumes grew 13%.

The value added products sales grew 5% in Q1.

Value added products accounted for 20% of the total sales against 19% yoy.

The company's focus remains to increase the share of value added products.

India & Overseas EBITDA margins Q1 stood at 14.69% and 14.34% respectively.

Effective Tax Rate was 25.28%.

Tax rate on Indian business was 28.72% and on overseas business was 17.39%.

Total Debt as of Q1 stood at Rs 838.1 crore against Rs 839.9 crore in FY 2019 end.

Net cash from operating activities in Q1 stood at Rs 38.5 crore.

Total capex in FY19 stood at Rs 229.7 crore.

Capacity utilization stood at 80%.

India capacity utilization was 83% and overseas capacity utilization was 74%.

Capex in Q1 stood at Rs 30.4 crore. Out of which capex for established products for capacity expansion, re-engineering and automation stood at Rs 20.2 and capex for value added products stood at Rs 10.2 crore.

Capex for Q2 has been close down as it does not know how the economy is moving. Capex has grown 12-15% in last few years and hopes to continue with the same during the current year but it will be able to give more clarity in after Q2.

Healthy Order Book continues in PE Pipe business of Rs 350 crore.

In its pipe business it started supply of newly launched new generation multilayer PE pipes for power /communication cable duct with silicon in-lining. This products continues to get overwhelming business.

The pipes/ducts have substantial business potential specially in smart cities.

Industrial Packaging division completed greenfield project for manufacturing of IBC Bottle in Chicago & Houston, USA and commenced commercial sale for which it is receiving overwhelming response.

Project of Greenfield manufacturing facility for Industrial Packaging division at Malurnear Bengaluru, India for manufacturing of packaging product is completed and production started in Q1 of FY20.

Brown field expansion in India and overseas locations for Industrial Packaging division continues for future growth and leveraging of existing infrastructures.

The company is innovating new applications of the MOX films.

For MOX films it is launching new products in the market like Truck covers, Pond Liners, Mulching Film & Poly house films.

For MOX films the company is focusing on new export markets i.e. Thailand, Malaysia, Germany, UK &USA.

During the quarter the company launched new range of next Generation Matting products i.e. Duro Gel & DuroComfort.

Pipe business is infrastructure related. Government's focus on water will be beneficial to the company. The company does not supply directly to the government.

Going by the kind of tender floated and government's focus on water Pipe business is likely to see good growth. In FY 2020 Pipes business is likely to grow from Rs 340 crore to Rs 430 crore.

The company is not happy with the economic situation that is around.

Overseas borrowings are local borrowings in local currency.

The management feels that it is very well placed with respect to debt level.

Interest rate in FY 2020 will be same around FY 2019 levels.

Tax rate will be around 26% in FY 2020 on consolidated basis.