TCPL Packaging Limited — Earnings Release 2021

Aug 12, 2021

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12.08.2021

The Bombay Stock Exchange Ltd Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001 Security Code:-523301

The National Stock Exchange of India Ltd Exchange Plaza, Plot No. C/1, G Block Bandra Kurla Complex, Bandra East, Mumbai 400 051 Trading Symbol:- TCPLPACK

Dear Sir(s),

Re:- Earnings Presentation

We wish to inform you that Board of Directors of the company in their Meeting held on 12.08.2021, inter-alia considered and approved the Un-audited Financial Results of the Company (Standalone and Consolidated) for the first quarter ended 30.06.2021.

Attached is Earnings Presentation for the first quarter ended 30.06.2021. We request you to take the above on your records in the interest of general public at large.

Thanking You

For TCPL Packaging Limited

Digitally signed by NANAVATI NANAVATI SOHAN SOHAN GAMANLAL GAMANLAL Date: 2021.08.12 14:26:45 +05'30' Compliance Officer

Encl. As above

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12 August 2021

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Certain statements and opinions with respect to the anticipated future performance of TCPL Packaging Limited in the presentation (“forwardlooking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be correct. Such forward-looking statements involve several risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forwardlooking statements. These include, among other factors, changes in economic, political, regulatory, business or other market conditions. Such forward-looking statements only speak as at the date the presentation is provided to the recipient and TCPL is not under any obligation to update or revise such statements to reflect new events or forward-looking circumstances. No representation or warranty (whether express or is in of information in this or that implied) given respect any presentation this presentation is suitable for the recipient’s purposes. The delivery of this does not that the information herein is correct as presentation imply at time after the date hereof and TCPL has no whatsoever any obligation to update any of the information or the conclusions contained herein or to correct inaccuracies which become after the date any may apparent hereof.

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TCPL – One of India’s leading producers of sustainable packaging solutions for customers across industries

YEARS

(RS. CRORE) (RS. CRORE)

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17.7%
15 years
Revenue
CAGR
(FY07 to FY21)
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7
Manufacturing
units
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~1,900
Employees
(FY21)
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*Note – Calculation for Cash Profit = PBT + Depreciation

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One of India’s largest Folding Carton manufacturers and convertors of paperboard Innovative player in the Flexible packaging industry Close-to-Demand Pan-India Footprint to fast-track growth Caters to Consumer Goods, Food & Beverage, Tobacco, Liquor, Agro-Chemicals, Pharma, and various other industries Accredited with international certifications of quality and implemented Integrated Management System (IMS) for allround quality assurance

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~
85%
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~
15%
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Revenue Mix (FY21)

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Folding Cartons

Flexible Packaging

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One of India's leading Carton Packaging companies since 1990s driven by adoption of industryleading technology

Offers wide-range of innovative, sustainable & unique packaging solutions Well-positioned to support diverse customer requirements with PAN India presence and network

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MONOCARTONS SPECIALTY & GIFT PACKAGING SHELF READY PACKS
FOOD & BEVERAGES PACKAGING
PHARMA PACKAGING
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Innovative versatile and sustainable solutions to customers across player providing industry verticals

Offers a variety of products including Pouches, Laminates, Shrink Sleeves, and Wrap Around Labels

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POUCHES
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SHRINK SLEEVES
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WRAP AROUND LABELS
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LAMINATES
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TIPPING PAPER

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BUNDLE PAPER, INNER
FRAMES & SOFT PACKS
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Long-term connect with marquee clients spanning over 31 years

Deep-rooted Relationships

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Developing creative solutions by a dedicated team with proven capabilities

Innovative Products

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Equipped with latest state-ofthe-art machines

Several technical collaborations to ensure efficiency & productivity

Advanced Technology

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Operates multiple manufacturing units

Vast market network across India and Oversees Consistent investment in sustainable packaging solutions

Wide-spread

Sustainability

Presence

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Liquor Agrochemical, Pharma & Others FMCG
Tobacco
Food & Beverages
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“Enables leading companies across industries identify the right packaging solutions”

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Pan-India Presence

Scale

Close-to-demand strategy to drive growth

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Improving consolidation in a
largely unorganized industry
Sustainable Packaging
Solutions
Emerging as a major growth
opportunity
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Partnership with Customers

Leverage existing relationship to gain higher wallet share

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Investment in New
Technologies
Leveraging latest technology to
expand market opportunity
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Diversification
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Focused approach towards growth through diversification

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Cash Profit (Rs. Cr.)
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Total Revenues (Rs. Cr.) EBITDA (Rs. Cr.) Cash Profit (Rs. Cr.)
22.8
226.1
30.4
169.5 23.5
13.9
Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22
Shift % (Y-o-Y) Shift % (Y-o-Y) Shift % (Y-o-Y)
33.4% 29.0% 64.6%
Margins (%) Margins (%)
13.9% 13.4% 8.2% 10.1%
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Note: Standalone figures

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TCPL in the process of commissioning second manufacturing line in the Flexible Packaging segment

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Unit is expected to be commissioned this fiscal and will effectively more than double the segment’s capacity The Company anticipates to ramp-up utilization levels at the facility over the next two years

TCPL Innofilms Private Limited, a wholly owned subsidiary of TCPL, is setting up a state-of-theart innovative Polyethylene (PE) blown film line at Silvassa

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State-of-the-art innovative facility is expected to be commissioned in this fiscal

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Film based on Machine-Direction Orientation (MDO) technology will be environment friendly – anticipated to garner robust traction given recent consumer preference for sustainable and recyclable offerings

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Commenting on the performance for Q1 FY22 Mr. Saket Kanoria, Managing Director, TCPL Packaging Limited said

“We have started the fiscal on a steady note despite the second wave of the COVID-19 demand in the first the we a pandemic impacting quarter. During quarter, registered total revenue growth of 33% YoY, largely aided by lower base in the corresponding period last year. While I am pleased to share that we are witnessing a month-on-month and to see the trend in the we improvement hope continuing upcoming quarters, remain cautious on account of the ongoing pandemic.

On the operational front, we are making healthy progress in establishing our second Flexible Packaging line that will more than double our existing capacity. This, along with our state-of-the-art innovative Polyethylene (PE) blown film unit is expected to be commissioned the end of this Normalization in demand combined with our by year. expansion plans should provide notable impetus to our growth plans from FY23 onwards.

Looking ahead, on the back of technological advancements in the packaging solutions industry, we believe that organized players like TCPL are well-positioned to tap the growing demand for sustainable packaging solutions from large Brands across various industries, including FMCG and Food & Beverages.”

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15 Particulars (Rs. crore) Q1 FY22 Q1 FY21 Y-o-Y Change (%) FY21 FY20 Y-o-Y Change (%) Revenues from Operations 222.9 165.9 34.4% 886.4 870.3 1.8% Other Operating Income 3.2 3.7 -12.5% 17.5 19.5 -10.5% Total Revenues 226.1 169.5 33.4% 903.8 889.8 1.6% Total Expenditure • Raw Material expenses 136.1 94.5 44.0% 523.1 520.5 0.5% • Employee benefits expense 23.9 22.5 6.6% 90.3 87.1 3.7% • Other expenses 35.7 29.1 22.9% 156.7 156.3 0.3% EBITDA 30.4 23.5 29.0% 133.7 126.0 6.1% EBITDA Margin (%) 13.4% 13.9% -50 bps 14.8% 14.2% 60 bps Other Income 0.1 0.3 -48.0% 2.5 2.1 20.4% Finance Costs 7.7 9.9 -22.5% 37.2 37.4 -0.6% Depreciation and Amortization 13.3 12.8 4.1% 51.5 48.4 6.4% PBT 9.5 1.1 801.9% 47.6 42.3 12.6% Tax expense 3.5 0.4 888.6% 13.9 5.8 140.4% PAT 6.0 0.7 758.6% 33.7 36.5 -7.6% PAT Margin (%) 2.7% 0.4% 230 bps 3.7% 4.1% -40 bps Cash Profit 22.8 13.9 64.6% 99.1 90.7 9.3% EPS Diluted (Rs.) 6.61 0.77 758.4% 37.08 40.13 -7.6%

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Total Revenues

Total Revenues stood at Rs. 226.1 crore, higher by 33.4% YoY

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Registered healthy revenue growth on a YoY basis owing to strong start to the quarter and last year’s low base

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Performance in both Folding Carton and Flexible Packaging segments were impacted owing to the pandemic-induced restrictions during the first quarter

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The Company is witnessing a month-on-month improvement in revenues and anticipates the trend to continue in the upcoming quarters

EBITDA

EBITDA came in at Rs. 30.4 crore, with EBITDA Margins at 13.4%

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While the industry is facing inflation across key raw materials, the Company was able to take adequate prices hikes during the quarter leading to steady margin performance

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Normalized demand along with stable outlook for key raw materials should assist the Company maintain EBITDA margins in a stable range going forward

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Cash Profit After Tax

Cash PAT stood at Rs. 22.8 crore, up 64.6% YoY

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Depreciation came in at Rs. 13.3 crore and finance cost stood at Rs. 7.7 crore during the quarter

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As the Company capitalizes new facilities in the upcoming quarters, absolute depreciation charge to P&L will increase. However, as the new units start contributing to performance, the additional charge as a percentage of revenues should reduce going forward

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Rs. 306.5 Rs. 696.9 Rs. 636.5
Crore Crore Crore
Net-worth Capital Employed Fixed Assets (Gross)
Rs. 329.9
Rs. 2.3
91 Days
Crore
Crore
Cash & Investments Net Debt Net Working Capital Days
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Note: As on 30th June 2021

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Q1 FY2022 Earnings Conference Call

Time

Pre-registration

• 3:00 p.m. IST on Thursday, August 19, 2021 To enable participants to connect to the conference call without having to wait for an operator, please register at the below mentioned link:

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Primary dial-in number

• + 91 22 6280 1141 / 7115 8042

• Hong Kong: 800 964 448

International Toll-Free • Number • UK: 0 808 101 1573

• Singapore: 800 101 2045

• USA: 1 866 746 2133

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TCPL Packaging Limited (TCPL) (BSE: 523301, NSE: TCPLPACK), is one of India’s leading producers of sustainable packaging solutions for customers across industries. The Company partners with customers to provide paperboard-based packaging solutions including folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs, and shelf-ready packaging. TCPL has also ventured into the flexible packaging industry, with capability to produce printed cork-tipping paper, laminates, sleeves, and wrap-around labels.

Headquartered in Mumbai, India, TCPL has a PAN India presence with 7 state-of-the-art manufacturing facilities and marketing offices in key metro cities. Over the years, the Company has diversified and broadened its to service a effectively operations wide of while range packaging products, consistently adding new customers and increasing its share of business in established customers and markets.

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For further information, please contact:

Vivek Dave TCPL Packaging Limited Tel: +91 70454 57686 Email: vivek.dave@tcpl.in

Anoop Poojari / Jenny Rose CDR India

Tel: +91 98330 90434 / 86899 72124 Email: anoop@cdr-india.com / jenny@cdr-india.com

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