Time Technoplast held its conference call after it declared its September 2015 quarter results.

Anil Jain, Managing Director of the company addressed the call.

Highlights of the call

For the quarter ended September 2015, it registered a 3% rise in consolidated sales to Rs 622.40 crore. OPM improved from 14.3% to 14.4% which saw OP rise 4% to Rs 89.65 crore.

PBT went up 15% to Rs 39.14 crore.

PAT went up 17% to Rs 30.92 crore.

Minority interest fell 10% to Rs 91 lakh after which consolidated net profit went up 18% to Rs 30.01 crore.

During the quarter Polymer Products contributed 71% of the total revenue. Revenue grew 3% to Rs 440.42 crore. PBIT grew 2% to Rs 45.85 crore and accounted for 72% of total

During the quarter Composite Products business accounted for 29% of the total revenue. Revenue grew 2% to Rs 181.98 crore. PBIT went up 1% to Rs 17.97 crore and accounted for 28% of total

For the six months ended September 2015, it registered a 5% rise in consolidated sales to Rs 1230.13 crore. OPM improved from 14.1% to 14.2% which saw OP rise 6% to Rs 174.98 crore.

PBT went up 21% to Rs 76.40 crore.

PAT went up 25% to Rs 60.41 crore.

Minority interest fell 3% to Rs 1.99 crore after which net profit went up 27% to Rs 58.43 crore.

During the six months Polymer Products contributed 71% of the total revenue. Revenue grew 5% to Rs 873.53 crore. PBIT grew 7% to Rs 90.87 crore and accounted for 72% of total

During the six months Composite Products business accounted for 29% of the total revenue. Revenue grew 3% to Rs 356.60 crore. PBIT went up 5% to Rs 35.09 crore and accounted for 28% of total

Volume grew 6.3% in first half, India was muted overseas grew by 15% for the six months.

The business environment was challenging. Management focus was to maintain sales and profitability. The company feels that the situation will improve in Q3 and Q4.

Real challenge was also from WC cycle. Payments were not forthcoming from some customers as per schedules. The company had to take cautious approach.

Capex was Rs 41 crore for normal maintenance capex. For the full year target is Rs 75 crore.

Packaging accounted for 71% of sales, Life style accounted for 9%, Auto 7% and Infrastructure and related business 12% and 2% came in from others. This will be more or less remain same in FY 2016. Profit margins are more or less same across the segments.

67% of sales came from India and 33% came in from overseas business.

5.46% was the volume growth in September 2015 quarter.

Volume growth is expected to be at 10% in FY 2016 so effectively it will have 15% volume growth in second half. Target for volume growth is not revised downwards as in Q3 and Q3 the management feels that business will come in vengeance.

Battery business is not doing great. The company will do same business like last year. The company has made lots of inroads into solar batteries. The company will either join hands with a Chinese company or a Chinese company will set up business in India and Time Techno will supply the batteries to the Chinese company.

Battery sales in FY 2016 will be around Rs 200 crore.

In Q3 and Q4 the company will be doing 140000 cylinders (it did 56000 between Q1 and Q2). All cylinder sales are and will be in overseas for now.

The company would increase cylinder capacity by 400000 cylinders which will take the capacity to 700000 cylinders. .

Industrial packaging in India is 80% and 55% for overseas.

The requirement of high pressure pipes is large in geographies like Hyderabad and Telangana.

Composite cylinders can have sales of Rs 40 crore in FY 2016 and Rs 60 crore in FY 2017.

Till now the company used to plan for 2 years but now the company is looking at 5 years prospective plan for the company. As the company's capacity utilization is fairly good at 75% on consolidated basis, to achieve its 5 years targets, the company has planned Rs 175 year capex. This will be apart from maintenance capex of Rs 75 crore in FY 2016 alone.

Accordingly: in five years

The company would like sales to double of what it is now.

RoCE should move to 21% and above. Though it is ambitious the management feels that it can do it.

Debt/ebidta is targeted to reduce from current 2.35 to 1

WC cycle is planned to reduce from 81 days in FY 2015 to 75 days.