Time Technoplast Limited Q1 FY23 Earnings Conference Call Insights

Key highlights from Time Technoplast Limited (TIMETECHNO) Q1 FY23 Earnings Concall

Q&A Highlights:

• Pritesh Chheda from Lucky Investment asked about revenue comparison from June ’19 to June ’22, why there isn’t much growth in the company. Bharat Vageria MD answered that revenue has to be compared with input costs. This year the company expects to cross more than INR4,000 crores.

• Pritesh Chheda from Lucky Investment asked about the size of LPG composite cylinder and CNG cylinder in FY22 and FY23. Bharat Vageria MD replied that in LPG there is a good order book from IOCL that covers almost 60-70% of order book. In 1Q23, supply was less considering the flood in many regions. So LPG will be 90% and CNG will be more than 50%.

• Pritesh Chheda from Lucky Investment asked about the total volume of LPG plus CNG in FY23. Bharat Vageria MD said the company is expecting both together INR350 crore in value terms and in volume terms 950,000 LPG and CNG [225].

• Karan Gupta of CAVI Capital enquired about the consolidation of the international business and focusing more on India. Bharat Vageria MD said that the company is replacing the business from 13% EBITDA level to 18% EBITDA level by focusing on consolidating the international business.

• Karan Gupta of CAVI Capital asked about the projections for capex. Bharat Vageria MD answered that the normal capex is in the range of INR150-180 crore which includes the normal maintenance, automation, and reengineering.

• Bhagesh of HDFC asked if there is a thought process to get into the actual EV business. Bharat Vageria MD answered that the company is working on the lithium battery side of the potential. So it’s working on and addressing that opportunity.

• Ganesh enquired what’s stopping from the realization of EBITDA range for the value-added products in the range of 18-22%. Bharat Vageria MD replied that value added products margin is in the avg. range of 20%. It’s just the temporary shift due to inflation why it’s fluctuating.