Time Technoplast conducted conference call on 16 August 2021 to discuss the financial results and performance of the company for the quarter ended June'21. Mr. Anil Jain, Managing Director, Mr. Bharat Vageria, Director - Finance, CFO, Mr. Raghupathy Thyagarajan, Director - Marketing, Mr. Sandip Modi, Sr. VP - Accounts & Corp. Planning and Mr. Hemant Soni, Head - Legal & CS of TIME Group addressed the call

Highlights of the Concall

• Q1FY22 revenue and EBITDA are up by 59% and 86% year-on-year led by higher utilization of capacities

• The company is receiving overwhelming response for its Type-IV composite cylinders for CNG cascades and has also started receiving orders for the recently approved Type-IV composite cylinders for on-board application.

• Total Debt reduced by Rs 21.6 crore in Q1FY22 from year ended FY21

• Value added products grew by 52% in Q1FY22 as compared to Q1FY21, while established products grew by 61%. The company's focus remains to increase the share of value added products in its revenue and improve margins

• Overall capacity utilization was 70% in Q1Fy21- India capacity utilization was 63% and overseas capacity utilization was 77%

• Pipe situation slowly improving. However delay continues in providing upward price revision to EPC contractors by government authorities on account of unexpected increase in polymer prices

• Order book in PE Pipe business is around Rs 210 crore

• The pipes/ducts have substantial business potential specially in government projects like Smart Cities, Jal Jeevan Mission and Swachh Bharat Mission

• The company is innovating new applications of the MOX films and is launching new products in the market like Truck covers, Pond Liners, Mulching Film, Poly house Films and Films for Agricultural use.

• The company has a continued focus on export markets of Thailand, Malaysia, Germany UK & USA.

• The company has continued overwhelming response from overseas customers for composite cylinder for use in filling of LPG. The company currently has approvals in over 55 countries and is exporting composite cylinders to over 48 nations.

• After a long wait, Government owned Oil Marketing Companies (OMCs) have started to procure Type-IV LPG composite cylinders and the company has received trial orders for 30,000 cylinders (appx) for various destinations in India.

• The company has recently received a big order for supply of 50 nos. of cascades for value in excess of Rs 35 crore, taking the total order book to Rs 85 crore.

• There are several RFQs / Tenders at advanced stage of finalization with various gas distribution companies / Institutions where the company is participating and expected to finalize in the next 2-3 months.

• During the month of May 2021, for the first time in India, the company has finally received approval from PESO and Bureau Veritas under ISO: 11439-2013 as applicable for manufacturing of fully wWrapped carbon fibre reinforced Type-IV composite cylinder for on board (vehicle) applications

• Besides the OEMs, who have explicitly expressed their preference for Type-IV cylinders vis-à-vis Type-I (steel cylinders),

• The company is also going to target the secondary market in the automobile industry besides the OEMs, who have explicitly expressed their preference for Type-IV cylinders vis-à-vis Type-I (steel cylinders)

• With the ongoing shortage for oxygen cylinder, the company has successfully developed carbon fibre reinforced composite cylinder (Type-III) for oxygen. The first prototype has been developed in 10 litre capacity at 200 bar pressure carrying sufficient medical grade oxygen to serve a patient for 7 hours @5 Litre Per Minute (LPM). The company is also working on developing a 20 Litre capacity cylinder. These cylinders are now undergoing extensive tests/trials and the company will soon apply for approvals by third party inspection agency and PESO.

• Total capex incurred during Q1FY22 was Rs 30 crore which includes which includes Rs 14 crore towards capacity expansion and Rs 16 crore towards value added products

• Value added product margin is in the range of 18-22% while ebitda margin for restablished product is in the range of 12-14%.