Today, it has emerged as a formidable player in the polymer space, with a product repertoire that caters to diverse segments like industrial packaging, lifestyle, auto components, healthcare and infrastructure. Its focus on technology in the polymer space and consistent efforts in developing a broad range of products across multiple verticals has enabled it to straddle a wide spectrum of user industries and thereby reduce dependence on any single product or user industry. In the domestic plastic based industrial packaging TTL enjoys dominant market share.

TTL is now also a multinational conglomerate with operations in Bahrain, Belgium, China, Egypt, Indonesia, India, Korea, Malaysia, Poland, Romania, Singapore, Sharjah, Taiwan, Thailand, Vietnam.

September 2014 quarter results

For the quarter ended September 2014, it registered a 14% rise in sales to Rs 605.05 crore. OPM grew 20 basis points to 14.3% which saw OP growing 15% to Rs 86.37 crore.

Other income fell 90% from Rs 1.05 crore to Rs 10 lakh and interest cost grew 17% to Rs 28.60 crore. As depreciation grew 10% to Rs 23.77 crore, PBT went up 14% to Rs 34.10 crore.

Tax grew 8% to Rs 7.58 crore after which PAT went up 16% to Rs 26.52 crore.

Minority interest grew 9% to Rs 1.01 crore after which net profit went up 16% to Rs 25.51 crore.

Six months results

For the six months ended September 2014, sales grew 15% to Rs 1174.69 crore. OPM fell 10 basis points to 14.1% which saw OP growing 15% to Rs 165.66 crore.

Other income fell 85% from Rs 1.08 crore to Rs 16 lakh and interest cost grew 18% to Rs 55.77 crore. As depreciation grew 10% to Rs 47.09 crore, PBT went up 13% to Rs 62.96 crore.

Tax grew 14% to Rs 14.78 crore after which PAT went up 13% to Rs 48.18 crore.

Minority interest grew 13% to Rs 2.05 crore after which net profit went up 13% to Rs 46.13 crore.

It will capitalise on replacement of metals with polymer products

Over the years, polymers have become a material of choice to replace metal in most areas of everyday's life. TTL is building up a novel & technically driven product made out of polymers & composites to replace metal in the high performance areas.

In light of the higher prices of metals and lower prices of polymers, the management expects acceleration in shifting of demand from metals to polymer containers, thus fuelling the company's growth.

In spite of higher crude oil prices, polymer prices have stabilized at lower levels due to large new capacities in Middle East and Iran. These new polymer plants are based on gas, thus aloof to the fluctuations in crude oil prices. With abundant availability of gas adequate for several decades, continued supply of polymers at reasonable rates is ensured.

Improved outlook

The company will benefit from shift of Chemicals based industry to Asia. Notably the company has presence in 3 continents (Asia, Africa & Europe) over 15 nations with major presence in Asia.

Time Technoplast has Pan - India presence with 16 manufacturing sites and located at maximum of 300 kms from important clients. Its domestic industrial packaging capacity utilization stands at ~75% and overseas capacity utilization stands at ~55%. The management is working on overseas asset sweating and improvement of overall RoCE

Infrastructure business (Pipes, Energy Storage Devices, Pre-fab) is expected to witness higher growth as economy recovers.

The company's Auto segment had been subdued due to slowdown in CV segment. However this segment is also expected to grow well along with the revival in CV segment

The company's OPM has been falling continuously over the past few years due to investment in new products and entry in to new regions and overall underutilisation of capacities due to sluggish demand. However as demand scenario improves as industrial activity picks up, capacity utilization will improve auguring well for recovery in OPM over the next few years.

The share price trades at Rs 49.