Time Technoplast Limited — Interim / Quarterly Report 2020

Feb 13, 2020

Earnings Presentation

9M / Q3-FY20 February 2020

BSE: 532856 | N S E : T I M E T E C H N O | I S I N : I N E 5 0 8 G 0 1 0 2 9 | C I N : L 2 7 2 0 3 D D 1 9 8 9 P L C 0 0 3 2 4 0

©2020, Time Technoplast Ltd., All Rights Reserved

Time Techno at a Glance

Consistent dividend paying company

Time Technoplast

• Time Technoplast Limited (Time Tech) is a multinational company and one of the leading manufacturer of technology based polymer and composite products
• Strong presence in Asia & MENA regions with presence in 10 different countries outside India
• Has 14+ recognized brands and works with >900 institutional customers globally
• Well established inhouse R&D team of around 30 people having experience of more than 15 years for upgrading existing and developing futuristic products by using latest processing technology

Business Mix

Industrial Packaging Polymer Drums,

Jerry Cans, Pails

Infrastructure

Polyethylene (PE) Pipes, Energy storage devices

Technical & Lifestyle

Turf & Matting, Disposable Bins, Auto Products

Composite Cylinders

MOX Film (Techpaulin)

(IBC)

Marquee Clients

Chemicals

BASF, Huntsman, Bayer, Aditya Birla Chemicals, Du Pont, Dow, Eco Lab, Solvay, Etc.

Petrochemicals

Shell, Indian Oil, Gulf, ExxonMobil, Total, etc.

Auto

Ashok Leyland, Tata Motors, Eicher Motors, Volvo, Etc.

Others

Cargill, GE, L&T, Nestle, Wipro, LEAP India, Etc.

Product Portfolio

Q3-FY20 Key Financial Highlights (Consolidated)

Particulars (INRMn)	Q3-FY20	Q3-FY19	Y-o-YGrowth
Total Income	9,237	8,729	5.8%
EBITDA	1,341	1,261	6.3%
EBITDAMargins(%)	14.52%	14.45%	7 Bps
PAT	485	542	(10.5)%
PATMargins(%)	5.25%	6.21%	(96)Bps
CashProfit	901	844	6.8%
VolumeGrowth	10%

Note: PAT on QoQ basis is not comparable on account of change in depreciation policy in Q3-FY19 based on the useful life of Plant & Machinery, resulting lower depreciation by ~INR 110 Mn

9M-FY20 Key Financial Highlights (Consolidated)

Particulars (INRMn)	9M-FY20	9M-FY19	Y-o-YGrowth
Total Income	26,632	24,825	7.3%
EBITDA	3,822	3,547	7.8%
EBITDAMargins(%)	14.35%	14.29%	6 Bps
PAT	1,308	1,291	1.3%
PATMargins(%)	4.91%	5.20%	(29) Bps
CashProfit	2,540	2,404	5.7%
VolumeGrowth	11%

Note: PAT on nine monthly basis is not comparable on account of change in depreciation policy in Q3-FY19 based on the useful life of Plant & Machinery, resulting lower depreciation by ~INR 110 Mn

9M-FY20 Highlights

• Revenue growth achieved: 7% (India: 8%; Overseas: 6%)
• Volume growth achieved: 11% (India: 12%; Overseas: 11%)
• In 9M-FY20 India contributed 70% and Overseas contributed 30% towards total revenue
• The value added products grew by 11% in 9M-FY20 as compared to the 9M-FY19. The share of value added products is 20.4% of the total sales in 9M-FY20 as against 19.7% in 9M-FY19. The company's focus remains to increase the share of value added products in its revenue.

7

9M-FY20 Operational Highlights

• Capacity utilization: Overall 82% (India – 85%; Overseas – 75%)

•	Total capex in9M-FY20:	INR 1,065 Mn
	Established Products for capacity expansion, re-engineering andautomation:	INR 750 Mn
	Value AddedProducts:	INR 315 Mn

Pipes

• Healthy Order Book continues in our PE Pipe business of ~INR 3,500 Mn
• 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 specially in SmartCities.

Industrial Packaging

• Completed Greenfield project for manufacturing of IBC Bottle in Chicago & Houston, USA and commenced Commercial Sale for which we are receiving overwhelming response.
• Greenfield expansion at Iowa, USA is under progress and to be completed by Q1-FY21
• Project of Greenfield manufacturing facility at Malur near Bengaluru, India for manufacturing of packaging product is completed and production started in Q1 of FY20.
• Brownfield expansion in India and overseas locations continues for future growth and leveraging of existing infrastructures.

MOX

• Company innovating new applications of the MOX films. The Company is launching new products in the market like Truck covers, Pond Liners, Mulching Film & Poly house Films.
• Focusing on new export marketsi.e. Thailand, Malaysia, Germany,UK & USA

Polymer and Composite Products

*Polymer Products: HM-HDPE plastic Drums/Jerry Cans and Pails, Polyethylene (PE) pipes, Turf & Mattings, Disposable Bins and MOX Films **Composite Products: Intermediate Bulk Containers (IBC), Composite Cylinders, Energy storage devices, Auto Products and Steel Drums

Consolidated Quarterly Income Statement

Particulars (INR Mn)	Q3-FY20	Q3-FY19	Y-o-Y
Total Income	9,237	8,729	5.8%
Total Expenses	7,896	7,468
EBITDA	1,341	1,261	6.3%
EBITDA Margin (%)	14.52%	14.45%	7 Bps
Finance Cost (Net)	268	246
Depreciation	400	287*
PBT	673	728	(7.5)%
Tax	172	170
PAT before Minority Interest	501	558
Minority Interest	16	16
PAT after Minority Interest	485	542	(10.5)%
PAT Margins (%)	5.25%	6.21%	(96) Bps
EPS (INR)	2.14	2.40

*Depreciation on QoQ basis is not comparable due to the fact that in Q3-FY19 company reviewed useful life of Plant& Machinery and accordingly working of depreciation has been changed, resulting lower depreciation in Q3-FY19 by ~INR 110 Mn

Consolidated Nine Months Income Statement

Particulars (INR Mn)	9M-FY20	9M-FY19	Y-o-Y
Total Income	26,632	24,825	7.3%
Total Expenses	22,810	21,278
EBITDA	3,822	3,547	7.7%
EBITDA Margin (%)	14.35%	14.29%	6 Bps
Finance Cost (Net)	822	712
Depreciation	1,193	1,077*
PBT	1,807	1,758	2.8%
Tax	460	431
PAT before Minority Interest	1,347	1,327
Minority Interest	39	36
PAT after Minority Interest	1,308	1,291	1.3%
PAT Margins (%)	4.91%	5.20%	(29) Bps
EPS (INR)	5.79	5.71

*Depreciation on nine monthly basis is not comparable due to the fact that in Q3-FY19 company reviewed useful life of Plant& Machinery and accordingly working of depreciation has been changed, resulting lower depreciation in Q3-FY19 by ~INR 110 Mn

Consolidated Financials Highlights

2,027

16.0%

Historical Consolidated Income Statement

Particulars (INRMn)	FY19	FY18	FY17
Total Income	35,670	31,049	27,568
TotalExpenses	30,403	26,297	23,504
EBITDA	5,267	4,752	4,064
EBITDA Margin(%)	14.77%	15.30%	14.74%
FinanceCost(Net)	986	875	901
Depreciation	1,461	1,372	1,155
PBT	2,820	2,505	2,008
Tax	735	652	494
PATbeforeMinorityInterest	2,085	1,853	1,514
MinorityInterest	58	49	43
PATafterMinorityInterest	2,027	1,804	1,471
PAT Margins(%)	5.68%	5.81%	5.33%
Basic & Diluted EPS[INR]	8.96	7.98	6.90

Consolidated Balance Sheet

Particulars (INR Mn)	H1-FY20	FY19	FY18	Particulars (INR Mn)	H1-FY20
Equity & Liabilities				ASSETS
Shareholder's Funds
Share Capital	226	226	226	Non-Current Assets
Other Equity	17,046	16,466	14,605	Fixed Assets
Total Shareholder's Fund	17,272	16,692	14,831	Property, Plant & Equipment	12,562
Minority Interest	485	463	405	Intangible Assets	4
Non-Current Liabilities				Capital Work-in-Progress	1,015
Long-Term Borrowings	3,376	3,183	3,302	Right-of-Use Assets	426
Lease Liabilities	383			Others Financial Assets/Long Term Loans & Advances	287
Deferred Tax Liabilities (Net)	781	730	581
Total Non Current Liabilities	4,540	3,913	3,883	Total Non Current Assets	14,294
Current Liabilities
Short-Term Borrowings	4,101	4,231	3,549	Inventories	7,276
Trade Payables	3,991	4,749	4,370	Trade Receivables	7,743
Other Financial Liabilities	1,022	991	925	Cash and Cash Equivalents & Bank Balance	774
Other Current Liabilities	539	452	419	Other Advances	963
Short-Term Provisions	102	92	83	Other Current Assets	1,274
Current Tax Liabilities	272	415	454	Total Current Assets	18,030
Total Current Liabilities	10,027	10,930	9,800
TOTAL -EQUITY AND LIABILITIES	32,324	31,998	28,919	TOTAL -ASSETS	32,324

Particulars (INR Mn)	H1-FY20	FY19	FY18	Particulars (INR Mn)	H1-FY20	FY19	FY18
Equity & Liabilities				ASSETS
Shareholder's Funds
Share Capital	226	226	226	Non-Current Assets
Other Equity	17,046	16,466	14,605	Fixed Assets
Total Shareholder's Fund	17,272	16,692	14,831	Property, Plant & Equipment	12,562	12,785	11,991
Minority Interest	485	463	405	Intangible Assets	4	6	6
Non-Current Liabilities				Capital Work-in-Progress	1,015	983	941
Long-Term Borrowings	3,376	3,183	3,302	Right-of-Use Assets	426
Lease Liabilities	383			Others Financial Assets/Long Term Loans & Advances	287	274	220
Deferred Tax Liabilities (Net)	781	730	581
Total Non Current Liabilities	4,540	3,913	3,883	Total Non Current Assets	14,294	14,048	13,158
Current Liabilities
Short-Term Borrowings	4,101	4,231	3,549	Inventories	7,276	7,373	6,409
Trade Payables	3,991	4,749	4,370	Trade Receivables	7,743	7,842	6,703
Other Financial Liabilities	1,022	991	925	Cash and Cash Equivalents & Bank Balance	774	666	740
Other Current Liabilities	539	452	419	Other Advances	963	788	771
Short-Term Provisions	102	92	83	Other Current Assets	1,274	1,281	1,138
Current Tax Liabilities	272	415	454	Total Current Assets	18,030	17,950	15,761
Total Current Liabilities	10,027	10,930	9,800
TOTAL -EQUITY AND LIABILITIES	32,324	31,998	28,919	TOTAL -ASSETS	32,324	31,998	28,919

Marquee Investors as on 31stDecember, 2019	(% of Total Equity)
NT Asian Discovery Fund	15.1
HDFC Trustee	9.0
KapitalforeningenInvestinPro -Dalton	3.8
Grandeur Peak	3.6
RelianceCapital Trustee Co. Ltd.A/c Reliance Tax Saver (ELSS) Fund	1.1

Total Shareholders > 30,000

Thank You

© 2020 Time Technoplast Limited, All Rights Reserved.

"Time Technoplast" and The Time Technoplast Logo are trademarks of Time Technoplast Limited. In addition to Company data, data from market research agencies, Stock Exchanges and industry publications has been used for this presentation. This material was used during an oral presentation; it is not a complete record of the discussion. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole on or in part in any manner or form or in any media without the prior written consent. All product names and company names and logos mentioned herein are the trademarks or registered trademarks of their respective owners.