Financial Performance: Time Technoplast Limited reported strong financial results for Q2 and H1 of FY25, with substantial year-on-year growth. In Q2 FY25, the company achieved net sales of ₹1,372 crores, representing a 15% increase compared to the same period in the previous year. Profit after tax for Q2 FY25 increased by an impressive 40% year-on-year. For H1 FY25, net sales amounted to ₹2,626 crores, reflecting a 14% growth compared to the previous year. Profit after tax for H1 FY25 showed a remarkable 40% increase. The company's EBITDA margins also improved by 40 basis points, reaching 14.3% in H1 FY25. Growth Drivers: The company's growth is primarily driven by robust demand in its industrial packaging segment and a remarkable 36% surge in its CNG composite cascade business. The demand for Type 4 composite cylinders for CNG cascades remains particularly strong, with an order book of approximately ₹185 crores. Sales of value-added products, including composite cylinders for both LPG and CNG, have contributed significantly to the company's growth. The share of value-added products in total sales has increased to 27% in H1 FY25.
Strategic Initiatives: Time Technoplast Limited has undertaken several strategic initiatives to further strengthen its position and drive future growth. Debt Reduction: The company is committed to becoming debt-free by March 2026 and has reduced its debt by ₹52 crores in the first half of FY25. Capacity Expansion and Value-Added Products: Time Technoplast is focusing on capacity expansion, particularly for value-added products like CNG, LPG, and hydrogen cylinders. Automation and Efficiency: The company is investing in automation, re-engineering, and modifications of existing equipment to improve productivity and reduce costs. Consolidation of Subsidiaries: Time Technoplast is consolidating its subsidiaries, Time Power Batteries and Time Net, to optimize resource utilization and improve overall profitability. Expansion of Subsidiary TPLast Tech: The company's subsidiary, TPLast Tech, is expanding its manufacturing facilities in the Maharashtra region to cater to the growing demand for IBCs in that region. Focus on Organic Growth: The company has decided not to sell its overseas business in the Middle East and will instead focus on organic growth in international markets. Divestment of Non-Core Assets: Time Technoplast has realized around ₹65 crores from the sale of non-core assets and expects to realize the remaining ₹60 crores within the next 12 months.
Growth Outlook: The management expressed confidence in the company's growth prospects for the remainder of FY25, despite challenges faced due to extended monsoon seasons. The company maintains its target of achieving around 15% volume growth for FY25. The overseas business is expected to grow at a sustainable rate of 15%, driven by expansion in the Middle East, Southeast Asia, and the USA. The company anticipates significant growth in the composite cylinder market, particularly in the CNG and hydrogen segments. Time Technoplast is also exploring new applications for its composite cylinders, including drones and fire extinguishers.
Capital Expenditure (CAPEX): The company's total CAPEX for FY25 is estimated to be in the range of ₹180 to ₹200 crores, with a significant portion allocated towards capacity expansion for value-added products and maintenance CAPEX. Net CAPEX is expected to be around ₹125 to ₹130 crores after accounting for the proceeds from the sale of non-core assets. The company plans to continue investing in CAPEX in FY26, with an estimated range of ₹150 to ₹180 crores.
