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Press Releases
27-Sep-19
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Time Technoplast Limited: Rating reaffirmed
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Rationale
The rating reaffirmation considers the company's extensive operating track record in the plastic packaging industry with an established market presence. Time Technoplast Limited (TTL) enjoys a leading market position in most of its product segments in the domestic and global markets. The company has a diversified product mix and exposure to diversified end-user industries. Furthermore, over the last couple of years, its product mix has improved through the addition of new products, which is likely to yield diversification-related benefits and aid in revenue growth and profitability. The rating considers the healthy increase in TTL's cash accruals, over the last five years, due to scale up in revenues, driven by regular capacity additions and successful introduction of new products and stable operating profit margin (OPM). TTL's financial profile is strong, as characterised by low gearing and healthy coverage indicators. Nonetheless, ICRA notes the high borrowing rates of the company.
The company is present in the highly fragmented packaging industry, characterised by intense competition, which limits its pricing flexibility. Furthermore, the price of its key raw material—high-density polyethylene (HDPE)—is derived from crude oil prices, thereby exposing TTL's profit margins to volatility in raw material price movement. With around 65-70% of the raw material requirement being met through imports, it remains vulnerable to volatile foreign currency exchange rates. However, TTL hedges a predominant share of its foreign exchange exposure, thereby mitigating the risk to an extent. The rating factors in the company's ongoing capital expenditure (capex) plans, which are being funded through a mix of debt and internal accruals. This may moderate its capital structure to some extent. Nonetheless, TTL's liquidity profile is adequate, supported by undrawn fund-based working capital and term loan limits.
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Previous News |
Time Technoplast consolidated net profit declines 0.91% in the September 2022 quarter
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Results
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Announcements
13-Nov-22
08:59
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Time Technoplast schedules AGM
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Corporate News
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18-Aug-22
19:20
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Time Technoplast to hold board meeting
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Corporate News
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28-Oct-21
11:52
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Time Technoplast Ltd leads gainers in 'A' group
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Hot Pursuit
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21-Jun-24
12:00
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Time Technoplast schedules board meeting
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Corporate News
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30-Oct-23
16:23
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Board of Time Technoplast recommends Final Dividend
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Corporate News
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31-May-22
09:59
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Time Techno jumps on bagging order from Indraprastha Gas
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Hot Pursuit
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12-Apr-23
10:18
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Time Technoplast
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Analyst Meet / AGM
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Conference Call
14-Aug-19
15:43
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Time Technoplast to convene board meeting
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Corporate News
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30-Jan-21
17:41
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Time Technoplast
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Analyst Meet / AGM
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Conference Call
15-Feb-22
08:55
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Time Technoplast
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Analyst Meet / AGM
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Conference Call
31-May-21
19:50
)
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Other Stories |
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