Time Technoplast targets FY09 sales above Rs 1,000cr

Anil Jain, MD, Time Technoplast, said the company is targeting above Rs 1,000 crore and Rs 100 crore in sales and profit respectively next year.

Excerpts from CNBC-TV18’s exclusive interview with Anil Jain:

Q: You net sales have come in about Rs 681 crore, profit after tax at about Rs 87 crore, thus taking your earnings per share to about Rs 36. Could you break-up the performance of each one of your verticals? What is the growth target for FY09?

A: We have done Rs 777 crore this year as against Rs 456 crore last year, a 70% topline growth. We have done Earnings Before Interest, Taxes, Depreciation and Amortization of Rs 145 crore as against Rs 77 crore last year. There has been a 90% growth in EBITDA. In net profit, we have done Rs 74 crore as against Rs 41 last year, but that is without extraordinary income. Net profit with extraordinary income came in at Rs 87 crore. EPS stood at Rs 36 without the extraordinary income, and Rs 43 with extraordinary income.

Q: How have each of your divisions done in terms of packaging, chemicals, auto, and auto components?

A: Packaging has grown about 35% which now represents almost 58% of our total sale. Auto is about 11%. It have seen a growth of almost 35% this year. This represents 11% of our total sale.

Lifestyle contributes only 9%, which has also grown at about 35%. However, healthcare is only 2% of our total sales, which is the new business that we started with. The infrastructure business showed extraordinary performance.

Last year, we had bought a battery company. That company in FY07 had done a turnover of Rs 45 crore. This year, we have been able to do Rs 153 crore.

Q: Take us through your expansion projects both at Thane and at Silvassa. Are they on time? Therefore, what will be your revenue projections for FY09?

A: When we went public last June, the biggest challenge for us was to complete our projects at various places. We have completed our projects in Sharjah and Poland, and bought Bahrain-based Gulf Powerbeat. Our Silvassa project was completed in April.

We have got two more projects coming up this year. One is for a shelter that will come up at Pantnagar. The other is a pipe project for water and sewage management. These projects will be coming up in Q3 and Q4 this year.

Q: You do not have any problems finding money. Is the money all tied-up?

A: We are well placed.  Our net worth is almost Rs 400 crore. Our long-term debt-equity is only about 0.26. We actually have a lot of strength in our balance sheet to borrow if the need arises, but are generating enough cash to be able to take care of our expenses.

Q: What are you expecting by way of bottomline and topline growth this year?

A: We will give a guidance for FY09 when we declare our Q1 results next month. The company has grown at a Compound Annual Growth Rate, or CAGR, of 58% in the last three years. We would maintain growth at the same pace. Half of this growth will come from our regular businesses. We are looking at acquisitions and some joint ventures, which will bring in balance. I am sure we will be on the other side of Rs 1,000 crore in terms of sales and above Rs 100 crore in profit.