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Time Technoplast (TTL), 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.
March 2016 quarter consolidated results
For the quarter ended March 2016, it registered an 1% fall in consolidated sales to Rs 660.24 crore. OPM improved from 12.8% to 13.4% which saw OP rise 3% to Rs 88.69 crore.
Other income fell 51% to Rs 1.63 crore and interest cost grew 2% to Rs 24.01 crore. As depreciation jumped 61% to Rs 25.01 crore, PBT went down 18% to Rs 41.30 crore.
Tax fell 41% to Rs 8.16 crore after which PAT went down 9% to Rs 33.14 crore.
Minority interest rose 45% to Rs 74 lakh after which net profit went down 10% to Rs 32.40 crore.
Consolidated Segmented Performance
During the quarter Polymer Products contributed 73% of the total revenue. Revenue fell 2% to Rs 479.72 crore. PBIT fell 8% to Rs 48.66 crore and accounted for 76% of total
During the quarter Composite Products business accounted for 27% of the total revenue. Revenue stagnated at Rs 180.52 crore. PBIT went down 16% to Rs 15.02 crore and accounted for 24% of total
FY 2016 consolidated results
For FY 2016, it registered stagnant sales at Rs 2472.08 crore. OPM improved from 13.7% to 14.1% which saw OP rise 3% to Rs 347.98 crore.
Other income fell 41% to Rs 2.12 crore and interest cost fell 8% to Rs 96.23 crore. As depreciation grew 13% to Rs 98.83 crore, PBT went up 3% to Rs 155.04 crore.
Tax fell 13% to Rs 32.56 crore after which PAT went up 8% to Rs 122.48 crore.
EO gains stood at Rs 19.53 crore against NIL. Thus PAT after EO grew 26% to Rs 142.01 crore.
Minority interest grew 6% to Rs 3.74 crore after which net profit went up 26% to Rs 138.27 crore.
Consolidated FY 2016 segment performance
During FY 2016 Polymer Products contributed 72% of the total revenue. Revenue stagnated at Rs 1789.84 crore. PBIT fell 1% to Rs 182.52 crore and accounted for 73% of total
During FY 2016 Composite Products business accounted for 28% of the total revenue. Revenue grew 2% to Rs 702.24 crore. PBIT went down 1% to Rs 66.63 crore and accounted for 27% of total
PBIT margins of both the divisions fell during the quarter and FY
During the quarter PBIT margins of Polymer Products division fell from 10.8% to 10.1% and the same fell from 10.3% to 10.2% during the FY.
During the quarter PBIT margins of Composite Products division fell from 9.9% to 8.3% and the same fell from 9.7% to 9.5% during the FY.
Other details
On continuing business, in FY 2016, net sales grew 5.09%, EBITDA grew 6.88% and PAT grew 26.81% (After Extra Ordinary Income). Volume grew 10.88%.
India accounts for 73% of sales and overseas business accounts for 27%.
All Overseas units in 8 countries are now profitable.
The above consolidated financial results for the Quarter/ Year ended are not comparable to those of previous quarter/year ended
because of the followings
- sale of business of wholly owned subsidiary Novotech S.p z.o.o., Poland and its subsidiary Grass Tech SRL, Romania
- sale of business of 50% Joint Venture of Guangzhou Fanshun Elan Plastech Co. Ltd., South China
- discontinued manufacturing operation in South Korea and North China
- acquired balance 50% equity in Joint Venture Company Nile Egypt Plastech Industries S.A.E., Egypt
The profit/loss on sale of the above investments have been reflected in the Extra Ordinary items (Net of Tax).
Sale proceeds received on sale of units now being used for brownfield expansion and reduction of debts.
The depreciation for the quarter ended March, 2016 and March 2015 are not comparable due to realignment in Q4 for whole F.Y. 2014-15 for useful life of its Fixed Assets in accordance with the provision prescribed under schedule II of the companies Act 2013.
The Board of Directors have recommended dividend of 55% i.e. Rs. 0.55 (P.Y. Rs. 0.50) per equity share of Rs. 1/- each of the Company for the year ended 31st March 2016, subject to approval of Shareholders
Guidance for FY 2017
Industrial Packaging business capacity utilization is near 80%, hence the company has rolled out brownfield expansions in different locations.
PE Pipes is seeing robust growth due to increased spending by the Government of India. Due to Government's push on water and sewage projects, the company experienced growth of 22% in FY'16.
The company is expecting growth of over 30% in PE Pipes business in the year ahead.
Composite Cylinders saw 100% revenue growth in FY 2016. The management expects 100% growth in FY'17 and future years.
Overall volume growth is expected to be around 15% in FY 2017.
EBITDA will continue to grow.
Debts will be further reduced.
The management expects improvement in Net Margin & ROCE.
Valuation
The share price trades at Rs 50.
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