The call was addressed by Anil Jain-Managing Director and Bharat Vageria-Director Finance.

Highlights of the call:

The company has a presence in 9 countries operating from various manufacturing facilities in 30 locations across the globe and is recognized for its innovative polymer products.

The company has created a diversified portfolio of polymer based products like Industrial Packaging, Infrastructure, Automotive, Lifestyle Space, Material Handling, etc.

The company is literally driving the end user industries to shift from metal to polymer packaging and has successfully managed to capture a significant market share in India and across many manufacturing countries.

For the quarter ended March 2017, it registered a 24% rise in consolidated sales to Rs 810.07 crore. OPM improved from 13.5% to 14.0% which saw OP rise 28% to Rs 113.55 crore.

 PBT went up 45% to Rs 59.87 crore. PAT went up 33% to Rs 43.77 crore. Minority interest fell 3% to Rs 72 lakh after which net profit went up 33% to Rs 43.05 crore.

 In Q4 finance cost reduced by 105 bps to 2.66% from 3.71%.

 In FY 2017, its consolidated sales grew 14% to Rs 2754.61 crore. OPM improved from 14.4% to 14.7% which saw OP rise 16% to Rs 404.23 crore.

 PBT went up 30% to Rs 200.85 crore. PAT went up 24% to Rs 151.44 crore. Net of tax EO gains were nil against Rs 19.53 crore. Thus PAT after EO grew 7% to Rs 151.44 crore. Minority interest rose 16% to Rs 4.34 crore after which net profit went up 6% to Rs 147.10 crore.  

The results for the FY 2017 are not comparable to FY 2016 due to sale and discontinuance of some overseas businesses in FY 2016.

 In March 2017 quarter sales volume grew 24%.

 In FY 2017 sales volume grew 15%.

 In FY 2017 EBITDA to Net Sales grew from 14.43% to 14.74%.

 Last 10 years the company has seen sales grow at a CAGR of 20% or so.

 In profit it had substantial growth in FY 2017.

 The company had added few value added products in last 2-3 years which are growing very rapidly.

 Share of value added business as a % to sales will increase going forward which will help the company in delivering better EBITDA margins on higher revenues.

 Value product business includes Intermediate Bulk Containers (IBC), Composite Cylinders and Multiaxial Oriented Cross Laminated Films (MOX), which it launched some 1.5-2 months ago. These value added products account for about 13% of total sales. Going forward these will account for 19-22% of sales.

 Value added businesses will see CAGR growth of 40% going forward.

 Regular business will grow at about 13%.

 Value added businesses EBITDA is now at 17% which is likely to go up to 19-22%. Thus overall profit margins will grow going forward.

 In FY 2018 20% sales growth will be challenging but can surely expect more than 17% sales growth.

But the internal target for sales growth in FY 2018 will be 20%.

 It is looking at 15.15% OPM in FY 2018 and 15.6% in FY 2018-19.

 For 2020-21 it is looking at 16.5-17% OPM.

 Return on Capital Employed improved to 14.68% in FY 2017 against 12.88%.

 In beginning of FY 2017 the company had said that its RoCE will improve by 160-170 basis points which it achieved.

 From here onwards till FY 2020-21 its RoCE will increase by 200 basis points every year.

 Its internal RoCE target in FY 2020-21 is 21-22%

 It had managed to reduce debt to Rs 722 crore as of March 2017. But the company is focusing more on growth opportunities.

 At any point in time debt wont be more than 2 times its EBITDA.

 At appropriate time the Promoters will increase stake if situation permits.

 In FY 2017 Total Debt to Equity Ratio stood at 0.54 against 0.64.

 The company employs over 3,600 personnel.

 It has operational footprints in India and overseas countries like UAE, Bahrain, Egypt, Thailand, Vietnam, Malaysia, Indonesia and Taiwan.

 Domestic sales accounted for 71% of sales in FY 2017. Rest came from overseas business.

 Continuous efforts are on for debt and effective finance cost reduction by using lowering cost of production and financing

 EBITDA margins in overseas and India are almost similar (14.40% against 14.82%). However, Net Profit margins are more in overseas at 5.52% against 5.26% due to lower tax rate.

 In FY 2017 capacity utilization in India was 89% and 70% overseas.

 In FY 2017 India and Overseas operation grew in value by 15% and 21% respectively.

 The company is the market leader in Packaging products in all the 9 countries where it operates.

 Tarpaulin (MOX film) was launched commercially and received overwhelming response owing to competitive strength, durability and services. The company has received BIS license for Tarpaulin.

 In view of strong order book for ‘LiteSafe' Composite cylinders, expansion for doubling the capacity (1.4 million per annum) undertaken is likely to commence commercial production by October 2017. 

Capacity expansion for High Pressure Pipes from 28,000 MT to 44,000 MT p.a. is under way.

 9000 MT capacity for Double Walled Corrugated (DWC) pipes is also being commissioned.

 The company has received BIS license for DWC pipes.