Company came out with decent nos, with 12% YOY sales growth and flat PAT. Concall notes below.
FY23Q2
- Packaging product order book is monthly
- Growth was driven by overseas business (21% YOY vs 8% for India)
- Pipe business target is 200 cr.+ in FY23
- LPG cylinder: 80% domestic + 20% exports. In recent quarter, export mix increased to 40% due to higher rainfall resulting in changing demand schedule from IOCL. Running at 85% capacity utilization. No planned expansion until they get order from other OMCs
- Guiding for 1%+ improvement in EBITDA margins and 20%+ revenue growth in H2FY23
- Generally, H2 is 55% of business
- Expansion of Supreme Industries in LPG composite cylinders is because they don’t have enough capacity to service current order book. Even after their expansion, Time’s capacity will be higher
- CNG on-board cylinder marketing will start only after expansion is complete
Disclosure: Invested (position size here, bought shares in last-30 days)