Mold-Tek Packaging Limited — Call Transcript 2022

Mar 8, 2022

==> picture [122 x 61] intentionally omitted <==

Date: 8[th] March, 2022

==> picture [277 x 75] intentionally omitted <==

To, To, The Manager, The Manager, Department of Corporate Services, National Stock Exchange of India Limited. BSE Ltd., Exchange Plaza, Sandra Kurla Complex, Phiroze Jeejeebhoy Towers, Bandra (E). Dalal Street. Fort, Mumbai-400001. Mumbai-400051. Scrip Code ; 533080 Ref: MOLDTKPAC - EQ

Sub: Outcome of Investors Conference Call held on 8[th] March, 2022 (Regulation 30 of SEBI (LODR) Regulations, 2015)

With reference to the intimation filed dated 8[th] March, 2022, Please find enclosed outcome of the Analyst/Investors conference call of the company.

Kindly take the above information on record.

Yours faithfully, For Mold-Tek Packaging Limited

==> picture [65 x 36] intentionally omitted <==

==> picture [51 x 48] intentionally omitted <==

Thakur Vishal Singh Company Secretary

==> picture [596 x 55] intentionally omitted <==

==> picture [122 x 61] intentionally omitted <==

==> picture [276 x 75] intentionally omitted <==

Mold-Tek Packaging (MTEP) Management meeting KTAs

• Management indicated that despite the increase in crude price, MTEP could pass on the impact of input inflation as earlier, to its clients and its EBITDA per kg margin is not impacted.

• Edible oil segment which got impacted during last 2 quarters has come back with good volumes in Q422 despite further rise our pricing due to RM increase.

• Management is of the view that companies who have shifted their packaging to IML are not willing to downgrade because of inflation pressure and hence MTEP does not see any major detrimental impact on the volume side, especially in F&F segment.

• While lubricant business remained stagnant, paints segment has come back after a relatively subdued 3QFY22.

• On Project IBM, management mentioned that pilot plant should start in Jun/july ’22 and expect OTC products to contribute to minor revenues in FY23. Ramping up of revenue from pharma packaging will take time (6 months post sampling production) and should start contributing from FY24. Margin profile of pharma is superior than F&F products. Pharma enjoys better premium even if compared to F&F. Immediate focus is on CRC caps wherein the market opportunity could be to the tune of Rs5bn. On Project IBM, total capex in next 2 years would be Rs. 600mn of which construction cost should be approximately Rs300mn and rest is mainly the equipment.

• Demand visibility from FMCG clients continue to remain strong. MTEP has bagged an order for one new IML product and 3 more orders are nearing the finalization stage. Annual revenue potential from these 4 products is to the tune of Rs400mn.

• Off-takes from hand wash and hand sanitizer pumps segment are lower than internal estimates. Due to normalization of Covid-19 situation, demand for the end-products have moderated. Also, Wipro’s shift of plant from Baddi to Hyderabad has been delayed and hence the volumes are lower than estimates.

• Polypropylene is the major raw material for MTEP and ~95% is sourced from Reliance Industries and IOCL. Currently, it is trading at Rs130+/kg which was Rs112/kg last year, and for 9MFY22 average price is Rs121/kg vs Rs93 for 9MFY21. Other polymers include HDPE, LDPE etc.

• MTEP is eyeing export opportunities as well and has got initial small success in USA market for restaurant/sweet boxes. MTEP is in the process of setting up export marketing team.

• Overall volume guidance for next 3-4 years is 15-~20% on the back of capacity addition, strong order visibility from existing clients and new products/client addition.

==> picture [596 x 56] intentionally omitted <==

---