Time Technoplast conducted conference call on 15 November 2021 to discuss the financial results and performance of the company for the quarter ended September'21. Mr. Anil Jain- Managing Director, Mr. Bharat Vageria, Director - Finance, CFO, Mr. Raghupathy Thyagarajan, Director - Marketing, Mr. Sandip Modi, Sr. VP - Accounts & Corp. Planning and Mr. Hemant Soni, Head - Legal & CS of TIME Group addressed the call

Highlights of the Concall

• Value added products grew by 24.4% in Q2FY22 as compared to Q2FY21, while established products grew by 22.5%. The company's focus remains to increase the share of value added products in its revenue and improve margins

• The company saw continued good demand for IBCs (intermediate bulk container) and large sized drums, from all the three locations in the US i.e. Chicago, Houston and Iowa.

• The pipe business saw unprecedented hike in resin prices resulting in delay in procurement by EPC contractors due to delay in hike from Government authorities. In spite of good order book in PE Pipe business was Rs 200 crore

• The pipes/ducts have substantial business potential especially in government projects like Smart Cities, Jal Jeevan Mission and Swachh Bharat Mission.

• The company innovating new applications of the MOX films and is launching new products in the market like truck covers, pond liners, mulching film, poly house films and films for agricultural use.

• Overall capacity utilization was 72% in H1FY22. India capacity utilization was 67% while Overseas capacity utilization was 78%

• Total debt in H1FY22 stood at Rs 832.4 crore

• The company supplies to government owned oil marketing companies (OMCs) for Type-IV LPG composite cylinders have completed against the trial orders received for 30,000 cylinders (appx.) for various destinations in India. Discussions for repeat orders are ongoing.

• The company has received another order from Indian Oil Corporation for another 30,000 cylinders which is now being executed.

• The company is working very closely with Indian Oil Corporation for preparation of tender specification for 13.7 lakh composite cylinder. So, even if you get half of it, that will be close to about 720,000 from into the by 1000 cylinders

• Steel cylinder prices have gone up from Rs 1300 per cylinder to Rs 2000 per cylinder due to rise in steel prices. However composite cylinder prices is stagnant around Rs 2200 per cylinder

• The company has got orders from Tesla for supplying batteries

• The company focus on improving working capital cycle time shall continue. In H1FY22, working capital cycle time reduced by 6 days (from 131 days to 125 days) and in the next 18 months it aims to achieve pre-COVID level of 90 days.

• The company is also started working for hydrogen cylinders also as and when the demand comes up

• Total capex in H1FY22 was Rs 73.2 crore. Capex for established products for capacity expansion, re-engineering and automation was Rs 40.3 crore while capex for value added products was Rs 33 crore.