I am pleasantly surprised that Time Technoplast has gotten into a very good growth patch, with improvement in margins and continued growth in sales. Sales grew by 16.6% and EPS by 41% this quarter. They are close to finalizing the international divestment deal. Concall notes below.
FY24Q2
- FY24 revenues should cross 5000 cr. (H1:H2 revenue mix is 45:55)
- Debt reduced by 2 cr. in Q2FY24
- Capex: 55 cr. (22 cr. towards established products + 33 cr. towards value-added products)
- CNG cascade: order book of 225 cr.
- FY24 expected ROCE: 15.5% and 1.5% improvement each year
- 18-22% margins in composite cylinders
- Seeing 15%+ growth in IBCs. GNX brand from Time Technoplast has been well established globally and is their main competitive advantage, as overseas customers ask for GNX IBCs for chemical shipments
- Target divestment of 100 cr. of non-core assets and no non-core assets by FY25
- Overseas divestment: valuation of ~1000 cr., will be selling 80%. Will be finished in FY24
I am also adding my notes from their AGM held earlier.
AGM23 notes
- LPG Composite cylinders: Added new countries like Taiwan, Ghana, Nigeria, Bermuda, St. Lucia, Romania, Burundi and Australia. Applied for approval to supply LPG cylinders to the USA
- CNG cascade cylinder order book: 250 cr.
- Introduction of Multi-Layer Technology for Industrial Packaging products (Drums, Jerry cans and IBCs) for use of Post Consumer Recycled (PCR) material in the middle layer of the product and use of PCR material to manufacture IBC Components are few steps in that direction. To encourage reuse of IBC, innovative business models such as cross bottling, collection, rebottling and reuse is now the new norm
- Overseas divestment: offering businesses on the basis of 3 regions, i.e. USA, South East Asia (including Taiwan) and MENA Region. Due diligence including legal process is on for two out of three regions and is expected to be completed any time soon
- FY24 capex: ~200 cr.
Disclosure: Invested (position size here, no transactions in last-30 days)