Time Technoplast registered 45% fall in sales to Rs 475.20 crore for the quarter ended June 30, 2020. That together with operating profit margin stand contract by marginal 20 bps to 11.4%, the operating profit was down by 57% to Rs 53.94 crore. The other income was down by 13% to Rs 0.25 crore, the PBIDT was down by 57% to Rs 54.20 crore. The interest was down by 8% to Rs 25.28 crore and the depreciation was down by 5% to Rs 37.50 crore. Thus the PBT was a loss of Rs 8.58 crore compared to a profit of Rs 59.76 crore in the corresponding previous period. The taxation was down by 80% to Rs 3.02 crore and the PAT was a loss of RS 11.59 crore compared to a profit of Rs 44.66 crore in the corresponding previous period. After accounting for lower Minority Interest (down 90% to Rs 0.09 crore), the net loss was Rs 11.68 crore compared to a profit of Rs 43.79 crore in the corresponding previous period.
- Sales volume for the quarter was down by 43% driven largely by 51% fall in India volume and that of overseas was down by 25%. Sales in value was down by 45% to Rs 475.20 crore. Value added products de-grew by 42.2% in Q1FY21 as compared to Q1FY20. This is lower than the de-growth in established products of 46.0%. The share of value added products is 21.3% of total sales in Q1FY21 as against 20.1% in Q1FY20. The company's focus remains to increase the share of value added products in its revenue and improve margins.
- Downside in revenue was due to fall in revenue of both polymer products and composite products business of the company. While the segment revenue of polymer was down by 46% to Rs 333.37 crore (or 70% of sales) that of composite products was down by 44% to Rs 141.83 crore (or 30% of sales).
- EBIT for the period was down by 81% to Rs 16.45 crore as both polymer products as well as composite products register fall in profits. Segment profit of polymer products was down by 82% (to Rs 11.11 crore) hurt by 680 bps contraction in segment margin to 3.3% as well as lower sales. Similarly the segment profit of composite products was down by 78% to Rs 5.34 crore as its segment margin was down by 600 bps to 3.8% and lower sales.
Yearly performance
Consolidated sales was flat at RS 3578.03 crore. But the operating profit was down by 5% to Rs 489.89 crore with OPM erode by 80 bps to 13.9%. The PBT was down by 16% to Rs 236.75 crore hit by lower other income, higher interest and depreciation. With taxation stand lower by 16% to Rs 61.74 crore, the PAT was down by 16% to Rs 175.01 crore. With MI up by 2% to Rs 5.89 crore, the NP (After MI) was down by 17% to Rs 169.12 crore.
While the sales of both Polymer Products and Composite stay flat at Rs 2536.53 crore and RS 1041.51 crore respectively, their segment profit was down by 9% to Rs 242.20 crore and RS 100.47 crore respectively hit by lower segment margin.
The share of value added products stood at 19.1% in FY20 compared to 18.6% in corresponding previous period.
Other developments
Incurred a total capex of Rs 14.5 crore in Q1FY21 of which about Rs 6.3 crore is toward established Products for capacity expansion, re-engineering and automation; Rs 8.2 crore for Value Added Products.
Capacity utilization for Q1FY21 was 45% overall with38% for India operations and 56% for overseas.
Industrial Packaging: Completed Greenfield expansion at Chicago & Houston , USA and company is receiving overwhelming response. Company has commenced production in August, 2020 its third green field manufacturing facility at IOWA in USA, for manufacturing of packaging products i.e. IBC and large sized drums for servicing to the customers in local surrounding regions. Brownfield expansion in India and overseas locations continues for future growth and leveraging of existing infrastructures.
Pipes: Healthy Order Book continues for PE Pipe business of about Rs 325 crore. Supply of newly launched new generation multilayer PE pipes for power /communication cable duct with silicon in-lining continues to get overwhelming business. The pipes/ducts have substantial business potential especially in Smart Cities.
Composite Cylinder: The Company is getting overwhelming response from customers for Composite Cylinder for use in filling of LPG. The Company has received in August 2020 coveted approval from Petroleum And Explosives Safety Organization (PESO) and Bureau Veritas for the first time for Indian Cylinder under International Standard ISO:11119-3:2013 as applicable for manufacturing of Fully Wrapped Carbon Fibre Reinforced Type-IV Composite Cylinder for CNG Cascades. This highly technical product has huge business potential and has been developed by Company's R&D Team in last 3 years.
MOX: 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. Focusing on new export markets i.e. Thailand, Malaysia, Germany, UK & USA.
Management comment
Anil Jain, MD & CEO of the company said, "The Company's Indian operations which account for 70% of total revenue, were subject to strict lockdown for a large part of this quarter. It was only in phase-3 and in phase-4 of the lockdown, that the company resumed operations subject to the limitations and strict health guidelines. Overseas units were not as severely impacted as they were able to get permission from the respective governments to run plants. Overall production is ramping up month on month basis and we expect to return to normalcy by end of H1FY21. However, it would be premature and slightly difficult for us to make a correct assessment of the impact on the operational results and financial health of the Company for the full year. The Company underwent new style of working specially, working from home, digitalized banking and use of latest communication / technology tools."
|