Time Technoplast conducted conference call on 14 February 2022 to discuss the financial results and performance of the company for the quarter ended Dec'21. Mr. Sanjaya Kulkarni - Chairman & Independent Director, Mr. Bharat Vageria, Managing Director, Mr. Raghupathy Thyagarajan, Whole-time Director, Mr. Sandip Modi, Sr. VP - Accounts & Corp. Planning and Mr. Hemant Soni, Head – Legal of the company addressed the call

Highlights of the Concall

• Consolidated net sales increased 13% YoY in Q3FY22- India growth was13% while overseas also grew 13%. Total volumes increased 9% - India 8% while overseas 3%.

• Value added products grew by 24.0% in Q3FY22 as compared to Q3FY21, while established products grew by 9.9%. Value added products grew by 30.6% in 9MFY22 as compared to 9MFY21, while established products grew by 26.2%. The company's focus remains to increase the share of value added products in its revenue and improve margins.

• The share of the value-added product is 22% of the total sales as against 21% in 9 months of FY '21.

• The company expects share of the value-added product of the total sales to increase from current 22% to 30% in 2 years time.

• Working capital cycle increased during the covid pandemic period to around 120 days from earlier around 85-90 days. The company aims to come back to the working of the cycle time of 85 to 90 days in next 12 months.

• Total Debt for 9MFY22 stood at Rs 837.4 crore. Net cash from operating activities in 9MFY22 is Rs 132.4 crore.

• Overall capacity utilization was74% in 9MF22 (India capacity utilization was 70% while Overseas capacity utilization was 79%)

• The company has received a single order worth Rs 80 crore during the quarter from a renowned public sector gas distribution company for supply of cascades with carbon fiber reinforced Type-IV composite cylinder, thus taking the total order booking to Rs 250 crore. In addition, there are several RFQs / tender at advanced stage of finalization with various gas distribution companies / institutions where the company is participating.

• The company has been successfully shortlisted for 1.5 million cylinder in a tender composite cylinder- LPG application. LOI is expected soon. The company expects good potential going ahead on account of the Pradhan Mantri Ujjwala Yojana of the Government of India.

• Total capex in 9MFY22 towards brownfield expansion, maintenance, re-engineering and automation was Rs 126.9 crore.

• The company plans to have a 20% ROCE by 2025. The company plans to grow 15% every year and target s revenue of Rs 5000 crore by 2025. The company expects a sustainable Ebitda margins in the range of 14.5% -15.5%.