- 30 May 2022
- ICICIdirect Research
Time Technoplast posts Q4FY22 numbers
TIMETECHNO - 401 Change: 11.20 (2.88 %)News: In Q4FY22, Time Technoplast reported revenue growth of ~9% YoY to Rs1040 crore led by 18% growth in the value added segment (revenue share of ~18%) to Rs 183 crore. The established product includes Drums, Pipes etc (revenue share of 82%) grew at ~8% YoY to Rs 857 crore. Despite gross margin fall of 100 bps YoY, savings in other expenses restricted overall EBITDA margin fall at 30 bps YoY to 13.8%. Finally, PAT at Rs 55 crore up by ~6% YoY.
Views: It has surpassed its pre-Covid level sales in FY22 (up 4% over its FY20 sales). On the margin front, the EBITDA margin at 13.9% is largely in line with its pre-Covid level margin. Savings in non-operational costs led PAT growth at 10% (over its FY20 PAT) to Rs 188 crore. The company is looking to raise fund by restructuring its overseas business. We await management commentary on development from this front and new order inflows in the composite products category. We believe the company is likely to utilise the proceeds (received from restructuring) for the capex of its fast growing Composite Cylinders (LPG/CNG/Hydrogen) & core business in India.
Impact: Positive