PBIT margin of Composite Products segment fell from 10.53% to 9.7%.  PBIT margin of Polymer Products segment rose from 9.78% to 8.57%.  Overall PBIT margin decreased from 10.02% to 8.96%. 

Operating profit margin has declined from 14.30% to 13.03%, leading to 2% rise in operating profit to Rs 133.41 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 70.81% to 72.81%.   Employee cost decreased from 4.81% to 4.77%.   Other expenses fell from 10.31% to 9.48%.

Other income fell 4.55% to Rs 0.42 crore.  PBIDT rose 1.98% to Rs 133.83 crore.  Provision for interest rose 4.12% to Rs 23.99 crore. 

PBDT rose 1.53% to Rs 109.84 crore.  Provision for depreciation rose 6.52% to Rs 41.69 crore. 

Profit before tax down 1.30% to Rs 68.15 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 17.47 crore, compared to Rs 17.76 crore.  Effective tax rate was 25.63% compared to 25.72%.

Minority interest decreased 15% to Rs 0.85 crore.  Net profit attributable to owners of the company decreased 0.91% to Rs 49.83 crore. 

Equity capital stood at Rs 22.61 crore as of 30 September 2022 to Rs 22.61 crore as of 30 September 2021.  Per share face Value remained same at Rs 1.00. 

Promoters’ stake was 51.33% as of 30 September 2022 ,compared to 51.33% as of 30 September 2021 .  Promoters pledged stake was 7.83% as of 30 September 2022 ,compared to 8.18% as of 30 September 2021 . 

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Time Technoplast has increased 17.95% to Rs 1968.46 crore.  Sales of Composite Products segment has gone up 25% to Rs 661.86 crore (accounting for 34% of total sales).  Sales of Polymer Products segment has gone up 15% to Rs 1306.6 crore (accounting for 66% of total sales).

Profit before interest, tax and other unallocable items (PBIT) increased 14% to Rs 174.65 crore.  PBIT of Composite Products segment rose 24% to Rs 63.65 crore (accounting for 36% of total PBIT).  PBIT of Polymer Products segment rose 8% to Rs 111 crore (accounting for 64% of total PBIT).

Operating profit margin has declined from 13.86% to 13.06%, leading to 11.11% rise in operating profit to Rs 257.01 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 70.36% to 72.44%.   Employee cost decreased from 5.21% to 4.94%.   Other expenses fell from 10.61% to 9.57%. 

Other income rose 20.99% to Rs 0.98 crore.  PBIDT rose 11.14% to Rs 257.99 crore.  Provision for interest rose 1.42% to Rs 47.08 crore. 

PBDT rose 13.57% to Rs 210.91 crore.  Provision for depreciation rose 6.08% to Rs 82.36 crore. 

Profit before tax grew 18.95% to Rs 128.55 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 32.64 crore, compared to Rs 27.55 crore.  Effective tax rate was 25.39% compared to 25.49%.

Minority interest decreased 1.16% to Rs 1.70 crore.  Net profit attributable to owners of the company increased 19.56% to Rs 94.21 crore. 

Equity capital stood at Rs 22.61 crore as of 30 September 2022 to Rs 22.61 crore as of 30 September 2021.  Per share face Value remained same at Rs 1.00. 

Promoters’ stake was 51.33% as of 30 September 2022 ,compared to 51.33% as of 30 September 2021 .  Promoters pledged stake was 7.83% as of 30 September 2022 ,compared to 8.18% as of 30 September 2021 . 

Management Comment

Mr. Bharat Kumar Vageria -  Managing Director

We are pleased to report a consistent, healthy growth this quarter and first half, driven by good business performance. The Company delivered a healthy revenue growth of 18% in H1FY23. Our top priority continues to remain in strengthening the revenue share of Value-Added Products. The Value-Added Products segment grew by 28% Y-o-Y. However, margins were slightly impacted owing to prevailing geopolitical scenario and challenging macroeconomic environment. Despite a challenging global scenario, we remain cautiously optimistic about our performance in the future backed by huge demand for our value added products. We are also pleased to inform that in the last two and a half years the number of shareholders of the Company have increased by 300% and reached to more than 100k.

Full year results analysis

Net sales of Time Technoplast has increased 21.46% to Rs 3649.84 crore.  Sales of Composite Products segment has gone up 27.09% to Rs 1,137.56 crore (accounting for 31.17% of total sales).  Sales of Polymer Products segment has gone up 19.07% to Rs 2,512.28 crore (accounting for 68.83% of total sales). 

Profit before interest, tax and other unallocable items (PBIT) has jumped 47.54% to Rs 348.40 crore.  PBIT of Composite Products segment rose 51.91% to Rs 112.00 crore (accounting for 32.15% of total PBIT).  PBIT of Polymer Products segment rose 45.56% to Rs 236.40 crore (accounting for 67.85% of total PBIT). 

PBIT margin of Composite Products segment rose from 8.24% to 9.85%.  PBIT margin of Polymer Products segment rose from 7.70% to 9.41%.  Overall PBIT margin rose from 7.86% to 9.55%. 

Operating profit margin has jumped from 12.88% to 13.86%, leading to 30.65% rise in operating profit to Rs 505.80 crore.  Raw material cost as a % of total sales (net of stock adjustments) increased from 69.88% to 70.75%.   Employee cost decreased from 5.32% to 4.98%.   Other expenses fell from 11.87% to 10.48%.  

Other income fell 22.51% to Rs 2.96 crore.  PBIDT rose 30.13% to Rs 508.76 crore.  Provision for interest fell 5.88% to Rs 92 crore.  Loan funds rose to Rs 905.90 crore as of 31 March 2022 from Rs 863.13 crore as of 31 March 2021.  Inventories rose to Rs 907.69 crore as of 31 March 2022 from Rs 759.85 crore as of 31 March 2021.  Sundry debtors were higher at Rs 866.87 crore as of 31 March 2022 compared to Rs 798.28 crore as of 31 March 2021.  Cash and bank balance rose to Rs 94.12 crore as of 31 March 2022 from Rs 86.99 crore as of 31 March 2021. 

PBDT rose 42.14% to Rs 416.76 crore.  Provision for depreciation rose 4.24% to Rs 157.4 crore.  Fixed assets increased to Rs 1,383.78 crore as of 31 March 2022 from Rs 1,321.07 crore as of 31 March 2021.  Intangible assets declined from Rs 0.24 crore to Rs 0.07 crore. 

Profit before tax grew 82.38% to Rs 259.36 crore.  Share of profit/loss were nil in both the periods.  Provision for tax was expense of Rs 67.16 crore, compared to Rs 36.38 crore.  Effective tax rate was 25.89% compared to 25.58%.

Minority interest increased 74.17% to Rs 4.18 crore.  Net profit attributable to owners of the company increased 81.78% to Rs 188.02 crore. 

Equity capital stood at Rs 22.61 crore as of 31 March 2022 to Rs 22.61 crore as of 31 March 2021.  Per share face Value remained same at Rs 1.00. 

Promoters’ stake was 51.33% as of 31 March 2022 ,compared to 51.33% as of 31 March 2021 .  Promoters pledged stake was 8.18% as of 31 March 2022 ,compared to 8.22% as of 31 March 2021 . 

The scrip is currently trading at Rs 103