Any current/future new fundraising through debt or equity?

The company plans to use proceeds from the potential sale of overseas businesses primarily for debt repayment and CAPEX focused on LPG, CNG, hydrogen, and core Indian businesses (Page 4, 6). There is no specific mention of raising fresh equity capital currently. The company has ongoing CAPEX plans of around Rs. 200 crore over the next three years for maintenance, automation, and capacity expansion (Page 15). The focus is on internal accruals and asset sales to fund expansion and working capital improvements rather than new external fundraising (Page 4, 6, 15). No direct statement about raising

Any current/future capex/capital investment/strategic investment?

Planned CAPEX over the next three years is around Rs. 200 crore, including maintenance CAPEX, automation, and re-engineering to maintain capacity and support growth. Total CAPEX expansion of Rs. 600 crore over three years is considered adequate to achieve over 15% growth and a 19% ROCE. Specific CAPEX focus on composite cylinders, LPG, CNG, and hydrogen cylinders in core businesses in India to meet market demand. No expansion planned for LPG capacity currently, but CNG and hydrogen cylinder expansion is progressing well. Q1 FY24 CAPEX was Rs. 43 crore, including Rs. 26 crore towards value-adde

Future growth expectations in sales/revenue/volumes?

Overall growth estimated at over 15%, possibly around 17% for the year. Packaging business expected to grow at 12% to 13%, driven by chemical industry growth and exports. Composite products projected to grow by more than 30%, with continued expansion next year. PE pipe business growth estimated around 13%, recovering from last year's slowdown. CNG composite cylinder business showing strong growth with order book around Rs. 245 crore; capacity expanded to 480 cascades targeting Rs. 325 crore revenue at 85-90% utilization. Value-added products share increased to 24% of total sales, growing faste

Future growth expectations in earnings/operating earnings/profits/EPS?

The company projects overall business growth of over 15% annually, with Q1 FY'24 already showing 14% revenue growth and 18% volume growth year-on-year. Value-added products, especially composite products, are expected to grow over 30%, contributing to margin and earnings expansion. EBITDA margin is anticipated to improve by around 20-50 basis points yearly, driven by higher capacity utilization and increased share of value-added products (which have ~20% EBITDA margins). ROCE target is 19% within three years, up from the current 13.5%, supported by revenue growth, working capital cycle r

Current/ Expected Orderbook/ Pending Orders?

Current order book for CNG composite cylinders: Approximately Rs. 245 crore as of the date. Order schedules are typically given by customers on a monthly basis, especially for large cascade orders. Orders include both scheduled and spot orders, with the Company accommodating rescheduling as needed. The CNG cascade product has seen growing acceptance, with continuous tendering and procurement activities. The Company has a near 100% success rate in winning tenders for large size cascades in India. Additional tenders for CNG cascade are submitted and under discussion, with updates provided quarte

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Time Technoplast LtdQ2 FY23Industrial Products

Time Technoplast Ltd Q2 FY23 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹182P/E: 19.7Market Cap: ₹8.8K CrSector: Industrial Products

Management growth scorecard

Revenue

Category 3

Margin

Category 2

Fundraise

Yes

Order

Yes

Capex

Yes

3 of 5 growth signals are positive.

Full analysis

Revenue guidance

Category 3

→Overall growth estimated at over 15%, possibly around 17% for the year.
→Packaging business expected to grow at 12% to 13%, driven by chemical industry growth and exports.
→Composite products projected to grow by more than 30%, with continued expansion next year.
→PE pipe business growth estimated around 13%, recovering from last year's slowdown.
→CNG composite cylinder business showing strong growth with order book around Rs. 245 crore; capacity expanded to 480 cascades targeting Rs. 325 crore revenue at 85-90% utilization.
→Value-added products share increased to 24% of total sales, growing faster than established products.
→Overseas packaging business expected to grow 12%-13%, despite a 15%-20% drop in U.S. market; strong demand in Southeast Asia and Middle East.
→Management targets revenue to return to around Rs. 4,000 crore or above within 2 years, from Rs. 4,293 crore last year.

Margin guidance

Category 2

→The company projects overall business growth of over 15% annually, with Q1 FY'24 already showing 14% revenue growth and 18% volume growth year-on-year.
→Value-added products, especially composite products, are expected to grow over 30%, contributing to margin and earnings expansion.
→EBITDA margin is anticipated to improve by around 20-50 basis points yearly, driven by higher capacity utilization and increased share of value-added products (which have ~20% EBITDA margins).
→ROCE target is 19% within three years, up from the current 13.5%, supported by revenue growth, working capital cycle reduction (improving by 5-7 days per year), and operational efficiencies.
→CAPEX of about Rs. 200 crore annually over the next 3 years (total Rs. 600 crore) planned for expansion, automation, and capacity maintenance to support growth and profitability.
→Expect stable PAT growth aligned with volume and margin improvements; Q1 PAT grew 26% year-on-year.

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Fundraise plans

Yes

→The company plans to use proceeds from the potential sale of overseas businesses primarily for debt repayment and CAPEX focused on LPG, CNG, hydrogen, and core Indian businesses (Page 4, 6).
→There is no specific mention of raising fresh equity capital currently.
→The company has ongoing CAPEX plans of around Rs. 200 crore over the next three years for maintenance, automation, and capacity expansion (Page 15).
→The focus is on internal accruals and asset sales to fund expansion and working capital improvements rather than new external fundraising (Page 4, 6, 15).
→No direct statement about raising new debt was made, but repayment of existing debt is a clear priority (Page 4).

Order book

Yes

→Current order book for CNG composite cylinders: Approximately Rs. 245 crore as of the date.
→Order schedules are typically given by customers on a monthly basis, especially for large cascade orders.
→Orders include both scheduled and spot orders, with the Company accommodating rescheduling as needed.
→The CNG cascade product has seen growing acceptance, with continuous tendering and procurement activities.
→The Company has a near 100% success rate in winning tenders for large size cascades in India.
→Additional tenders for CNG cascade are submitted and under discussion, with updates provided quarterly.
→LPG orders include a significant order from IOCL, with other gas distribution companies in the pipeline.
→No immediate plans for LPG capacity expansion due to existing order book saturation.
→Overseas business order specifics are under active negotiation for divestment in certain geographies.

Capex plans

Yes

→Planned CAPEX over the next three years is around Rs. 200 crore, including maintenance CAPEX, automation, and re-engineering to maintain capacity and support growth.
→Total CAPEX expansion of Rs. 600 crore over three years is considered adequate to achieve over 15% growth and a 19% ROCE.
→Specific CAPEX focus on composite cylinders, LPG, CNG, and hydrogen cylinders in core businesses in India to meet market demand.
→No expansion planned for LPG capacity currently, but CNG and hydrogen cylinder expansion is progressing well.
→Q1 FY24 CAPEX was Rs. 43 crore, including Rs. 26 crore towards value-added products like IBC and composite products.
→CAPEX funds will also be used for debt repayment.
→Phase-II expansion plan ongoing to increase CNG cascade manufacturing capacity to 600 cascades per annum, with capability for green hydrogen cylinders.

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