Time Technoplast revenue growth decelerated from 21.6% in FY2014 to 13.3% in FY2015

31-05-2015 • About Time Technoplast ($TIMETECHNO) • By InTwits

Time Technoplast reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:

Time Technoplast has high CAPEX intensity: 5 year average CAPEX/Revenue was 11.6%. At the same time it's a lot of higher than industry average of 5.6%.
CAPEX is quite volatile: 1,052 in FY2015, 1,362 in FY2014, 1,997 in FY2013, 2,742 in FY2012, 2,365 in FY2011
The company has highly profitable business model: ROIC is at 12.9%
It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is 1.3x

Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.

Time Technoplast ($TIMETECHNO) key annual financial indicators

mln. INR	2011	2012	2013	2014	2015	2015/2014
P&L
Revenue	12,753	15,282	17,974	21,863	24,761	13.3%
SG&A					13
EBITDA	2,361	2,431	2,916	3,083	3,386	9.8%
Net Income	1,110	898	1,035	954	1,096	14.9%
Balance Sheet
Cash	487	622	532	692	687	-0.7%
Short Term Debt	2,104	3,438	4,978	5,215	5,397	3.5%
Long Term Debt	3,787	3,520	3,268	3,393	2,646	-22.0%
Cash flow
Capex	2,365	2,742	1,997	1,362	1,052	-22.8%
Ratios
Revenue growth	-58.8%	19.8%	17.6%	21.6%	13.3%
EBITDA growth	21.0%	2.9%	20.0%	5.7%	9.8%
EBITDA Margin	18.5%	15.9%	16.2%	14.1%	13.7%	-0.4%
Net Income Margin	8.7%	5.9%	5.8%	4.4%	4.4%	0.1%
SG&A, % of revenue					0.1%	0.1%
CAPEX, % of revenue	18.5%	17.9%	11.1%	6.2%	4.2%	-2.0%
ROIC	15.9%	12.8%	13.4%	12.0%	12.9%	0.9%
ROE	17.8%	12.6%	13.0%	10.9%	11.2%	0.3%
Net Debt/EBITDA	2.3x	2.6x	2.6x	2.6x	2.2x	-0.4x

Revenue and profitability

Time Technoplast's Revenue surged on 13.3% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.89 pp from 11.7% to 12.5% in FY2015.

Net Income marign showed almost no change in FY2015.

Capital expenditures (CAPEX) and working capital investments

The company's CAPEX/Revenue was 4.2% in FY2015. The company's CAPEX/Revenue dropped on 13.7 pp from 17.9% in FY2012 to 4.2% in FY2015. It's average CAPEX/Revenue for the last three years was 7.2%.

Return on investment

The company operates at good ROIC (12.89%) while ROE is low (11.15%). ROIC increased slightly on 0.92 pp from 12.0% to 12.9% in FY2015. ROE showed almost no change in FY2015.

Leverage (Debt)

Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 2.4x. Net Debt / EBITDA dropped on 0.4x from 2.6x to 2.2x in FY2015. Debt decreased on 6.6% in FY2015 while cash decreased slightly on 0.70% in FY2015.

Appendix 1: Peers in Containers & Packaging

Below you can find Time Technoplast benchmarking vs. other companies in Containers & Packaging industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Shri Jagdamba Polymers ($SHRJAGP)		35.5%	38.3%	21.7%	22.7%
Kg Petrochem ($KGPETRO)		16.1%	24.0%	20.9%	22.4%
Kanpur Plastipack ($KANPRPLA)		57.2%	-4.6%	21.1%	15.9%
Emmbi Industries ($EMMBI)		35.6%	36.6%	13.9%	14.8%
Uflex ($UFLEX)		28.9%	13.0%	13.1%	10.3%
Median (16 companies)	-55.4%	14.8%	15.3%	13.9%	7.8%
Time Technoplast ($TIMETECHNO)		19.8%	17.6%	21.6%	13.3%

Top companies by EBITDA margin, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Manaksia ($MANAKSIA)	16.5%	14.4%	17.4%	20.3%	18.6%
Essel Propack ($ESSELPRO)	17.8%	17.0%	17.4%	16.9%	17.2%
Kg Petrochem ($KGPETRO)	11.6%	16.0%	12.8%	14.7%	12.5%
Hindusthan National Glass & Industries ($HINDNATGLS)	17.8%	15.4%	9.3%	12.2%	12.1%
Kanpur Plastipack ($KANPRPLA)	9.3%	13.0%	13.2%		11.9%
Median (18 companies)	11.5%	12.9%	10.6%	11.4%	8.2%
Time Technoplast ($TIMETECHNO)	18.5%	15.9%	16.2%	14.1%	13.7%

Top companies by CAPEX/Revenue, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Essel Propack ($ESSELPRO)	7.9%	10.0%	6.7%	8.5%	9.4%
Piramal Glass ($PIRAMGLAS)	12.6%	20.7%	6.0%	7.7%
Control Print ($CONTROLPR)		3.0%	5.0%	7.5%
Hindusthan National Glass & Industries ($HINDNATGLS)	21.7%	75.5%	25.0%	6.7%	0.4%
Manaksia ($MANAKSIA)	9.0%	9.0%	4.8%	4.7%	6.5%
Median (6 companies)	9.0%	8.6%	6.4%	7.1%	5.1%
Time Technoplast ($TIMETECHNO)	18.5%	17.9%	11.1%	6.2%	4.2%

Top companies by ROIC, %


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Essel Propack ($ESSELPRO)		8.6%	9.9%	12.5%	14.7%
Manaksia ($MANAKSIA)	12.7%	12.9%	15.5%	16.0%	11.4%
Uflex ($UFLEX)	33.1%	12.5%	9.9%	8.1%	8.4%
Hindusthan National Glass & Industries ($HINDNATGLS)	10.0%	6.6%	-1.0%	-0.7%	-0.4%
Polycon International ($POLYCON)	8.3%	13.0%	9.6%
Median (27 companies)	8.4%	9.1%	9.9%	11.2%	9.9%
Time Technoplast ($TIMETECHNO)	15.9%	12.8%	13.4%	12.0%	12.9%

Top companies by Net Debt / EBITDA


Top 5	FY2011	FY2012	FY2013	FY2014	FY2015
Hindusthan National Glass & Industries ($HINDNATGLS)	2.1x	7.4x	15.8x	11.2x	10.6x
Uflex ($UFLEX)	1.0x	2.7x	3.0x	3.2x	2.8x
Essel Propack ($ESSELPRO)	3.0x	3.2x	2.9x	2.6x	2.2x
Manaksia ($MANAKSIA)	1.7x	1.3x	1.2x	0.3x	0.9x
Shree Rama Multi-Tech ($SHREERAMA)	23.2x	117.6x	15.7x		0.0x
Median (16 companies)	3.2x	3.2x	3.5x	0.9x	0.0x
Time Technoplast ($TIMETECHNO)	2.3x	2.6x	2.6x	2.6x	2.2x

Time Technoplast stock price chart

Time Technoplast financials

mln.	FY2010	FY2011	FY2012

Revenue	30,971	12,753	15,282
EBITDA	1,951	2,361	2,431
Net income	902.5	1,110	897.9
CAPEX	1,546	2,365	2,742
Debt	4,398	5,891	6,958
Cash	323.3	487.3	622.4

About Time Technoplast

Time Technoplast Limited manufactures and markets polymer products worldwide. The company offers industrial packaging products, including drums and containers, coin pack pails/buckets, PET sheets, packaging solutions, and intermediate bulk containers; and automotive components, such as spray suppression systems, rainflaps, deaeration tanks/radiator tanks, fuel tanks, and air ducts for vehicles. It also provides lifestyle products comprising matting products, bins, and moulded furniture for homes, hotels, restaurants, hospitals, clubs, airlines, auditoriums and tent houses, and various other institutes; and health care products, including auto break-reuse prevention syringes and auto collect-blood samplers, as well as OT safe-disposable face masks used in areas, such as OPD, wards, fumigation and cleaning areas, laboratories, clinics etc. In addition, the company offers material handling products consisting of plastic returnable transit packaging and material handling solutions, tackable containers, stack-nest containers, foldable small/large containers, plastic crates and pallets, export pallets, and dollies to retail, automotive, agriculture, processed food, apparel, pharmaceutical, FMCG, consumer durables, and logistics sectors. Further, it provides infrastructure products, including refuse bins, HDPE pipes, GRP pipes, water/sand filled barricades, and prefabs and shelters. The company primarily serves institutional clients and retail customers through distributors and dealers. Time Technoplast Limited was incorporated in 1989 and is headquartered in Mumbai, India.