CRISIL Research has come out with its report on Time Technoplast. According to the research firm, the company has been given the preferred vendor status for the Asian region by chemical MNCs like BASF, Clariant, Huntsman and Dow Chemicals, which is expected to further boost international packaging revenues.
CRISIL Research has come out with its report on Time Technoplast . According to the research firm, the company has been given the preferred vendor status for the Asian region by chemical MNCs like BASF, Clariant, Huntsman and Dow Chemicals, which is expected to further boost international packaging revenues. While the utilisation rates of the China capacities are also improving, demand remains low and is a monitorable.
Time Technoplast Ltd’s (Time’s) Q2FY13 results were broadly in line with CRISIL Research’s expectations. Revenues grew by 22% y-o-y to Rs 4.3 bn driven by strong growth across all segments. EBITDA margin expanded by 123 bps y-o-y (71 bps q-o-q) to 17.1% due to higher utilisation of the international capacities. Interest cost grew by 50% y-o-y (15% q-o-q) and was higher than expected. PAT grew by 39% y-o-y mainly on account of higher EBITDA. The company’s domestic packaging business continues to do well and the capacities across Asia are also reporting good traction now. However, the orders for composite cylinders have not picked up and the same remains a monitorable. Driven by Time’s market leadership in the domestic packaging industry, we maintain the fundamental grade of 4/5, indicating that its fundamentals are superior relative to other listed securities in India.
Good traction witnessed in the international packaging business
No orders for composite cylinders in hand; other businesses doing well
Broadly maintain earnings estimates for FY13 and FY14; fair value maintained at Rs 55
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