Time Techno came with very good results when compared with other packaging cos. Sales grew by 20% and EPS by 14%. Company is on track of exceeding 350 cr. in composite CNG and LPG cylinders in FY23 and can do 500+ cr. in FY24. Concall notes below.
FY23Q3
- Received 134 cr. order for CNG cascade from Maharashtra Natural Gas Limited
- Divestment will be announced in 3 months, process is a bit delayed as International business did very well in 2022 and valuations will be driven by CY22 nos (& not on CY21 nos)
- CNG cascade expansion: FY22 capacity was 180 cascades (10’800 cylinders). By March 2023, capacity should increase to 480 cascades (@55 cr. capex; 18.33 lakhs/cascade). This should further expand to 1080 cascades (64’800 cylinders) by March 2024 (@125 cr. capex; 20.83 lakhs/cascade)
- Pipes and Mox film business have grown slower in FY23 vs other businesses. Pipe business has revived with cooling off PVC prices
- CAPEX: 169 cr. in 9M, includes 53 cr. towards capacity expansion, re-engineering automation for established product + 116 cr. towards value-added product
- Expect 1200 cr.+ revenues in Q4FY23 and 15% growth in FY24 (established products should grow at 10-12%, and value added at 25%+)
- IOCL has renewed their LPG cylinder order
- CNG + LPG revenues will be over 500 cr. in FY24 due to limited capacity
- In a normalized scenario, working capital for established products is 110 days and is 70 days for value added products
- Have applied to PESO for approval of oxygen cylinders
Disclosure: Invested (position size here, no transactions in last-30 days)