Time Technoplast CAPEX surged on 61.6% and Revenue showed almost no change

28-05-2016 • About Time Technoplast ($TIMETECHNO) • By InTwits

Time Technoplast reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:

Time Technoplast has medium CAPEX intensity: 5 year average CAPEX/Revenue was 9.3%. At the same time it's a lot of higher than industry average of 7.3%.
CAPEX is quite volatile: ₹1,699m in FY2016, ₹1,052m in FY2015, ₹1,362m in FY2014, ₹1,997m in FY2013, ₹2,742m in FY2012
The company has highly profitable business model: ROIC is 12.4%
It operates with high leverage: Net Debt/EBITDA is 1.9x while industry average is 0.9x

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

Revenue and profitability

Time Technoplast's Revenue showed almost no change in FY2016. EBITDA Margin showed almost no change in FY2016.

SG&A as a % of Revenue showed almost no change in FY2016.

Net Income margin increased slightly on 1.2 pp from 4.4% to 5.6% in FY2016. During FY2012-FY2016 Net Income margin bottomed in FY2014 at 4.4% and was growing since that time.

Investments (CAPEX, working capital and M&A)

In FY2016 Time Technoplast had CAPEX/Revenue of 6.9%. The company's CAPEX/Revenue decreased on 4.2 pp from 11.1% in FY2013 to 6.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 5.8%. During FY2012-FY2016 CAPEX as a % of Revenue bottomed in FY2015 at 4.2%.

Return on investment

The company operates at good ROIC (12.4%) and ROE (12.6%). ROIC decreased slightly on 0.50 pp from 12.9% to 12.4% in FY2016. ROE increased slightly on 1.5 pp from 11.2% to 12.6% in FY2016.

Leverage (Debt)

Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 0.2x from 2.2x to 1.9x in FY2016. Debt decreased on 7.2% while cash increased slightly on 1.4%. Net Debt/EBITDA declined at -0.2x per annum in the last 5 years.

Time Technoplast has short term refinancing risk: cash is only 12.7% of short term debt.

Financial and operational results

Time Technoplast ($TIMETECHNO) key annual financial indicators

mln. INR	2012	2013	2014	2015	2016	2016/2015
P&L
Revenue	15,282	17,974	21,863	24,761	24,721	-0.2%
SG&A				13	6	-52.4%
EBITDA	2,431	2,916	3,083	3,386	3,480	2.8%
Net Income	898	1,035	954	1,096	1,383	26.1%
Balance Sheet
Cash	622	532	692	687	697	1.4%
Short Term Debt	3,438	4,978	5,215	5,397	5,503	2.0%
Long Term Debt	3,520	3,268	3,393	2,646	1,959	-26.0%
Cash flow
Capex	2,742	1,997	1,362	1,052	1,699	61.6%
Ratios
Revenue growth	19.8%	17.6%	21.6%	13.3%	-0.2%
EBITDA growth	2.9%	20.0%	5.7%	9.8%	2.8%

EBITDA Margin	15.9%	16.2%	14.1%	13.7%	14.1%	0.4%
SG&A, % of revenue				0.1%	0.0%	-0.0%
Net Income Margin	5.9%	5.8%	4.4%	4.4%	5.6%	1.2%
CAPEX, % of revenue	17.9%	11.1%	6.2%	4.2%	6.9%	2.6%

ROIC	12.8%	13.4%	12.0%	12.9%	12.4%	-0.5%
ROE	12.6%	13.0%	10.9%	11.2%	12.6%	1.5%
Net Debt/EBITDA	2.6x	2.6x	2.6x	2.2x	1.9x	-0.2x

Peers in Containers & Packaging

Below we provide Time Technoplast benchmarking against other companies in Containers & Packaging industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.

Top companies by Revenue growth, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Control Print ($CONTROLPR)	-	20.0%	14.1%	23.9%	17.9%
Shri Jagdamba Polymers ($SHRJAGP)	35.5%	38.3%	21.7%	22.7%	-
Kg Petrochem ($KGPETRO)	16.1%	24.0%	20.9%	22.4%	-
Kanpur Plastipack ($KANPRPLA)	-	-4.6%	21.1%	15.9%	-0.0%
Emmbi Industries ($EMMBI)	-	36.6%	13.9%	14.8%	13.3%
Median (19 companies)	16.1%	15.3%	13.9%	8.4%	-1.6%
Time Technoplast ($TIMETECHNO)	-	17.6%	21.6%	13.3%	-0.2%

Top companies by EBITDA margin, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Control Print ($CONTROLPR)	13.9%	19.2%	22.5%	25.2%	27.3%
Manaksia ($MANAKSIA)	14.4%	17.4%	20.3%	18.6%	16.6%
Essel Propack ($ESSELPRO)	17.0%	17.4%	16.9%	17.2%	19.4%
Piramal Glass ($PIRAMGLAS)	23.7%	18.9%	15.5%	13.5%	-
Kg Petrochem ($KGPETRO)	16.0%	12.8%	14.7%	12.5%	-
Median (22 companies)	12.9%	10.6%	11.4%	8.8%	13.6%
Time Technoplast ($TIMETECHNO)	15.9%	16.2%	14.1%	13.7%	14.1%

Top companies by CAPEX/Revenue, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Control Print ($CONTROLPR)	3.0%	5.0%	7.5%	11.9%	8.9%
Essel Propack ($ESSELPRO)	10.0%	6.7%	8.5%	9.4%	8.9%
Manaksia ($MANAKSIA)	9.0%	4.8%	4.7%	6.5%	8.5%
Uflex ($UFLEX)	23.0%	11.8%	3.5%	3.6%	8.4%
Hindusthan National Glass & Industries ($HINDNATGLS)	75.5%	25.0%	6.7%	0.4%	4.8%
Median (5 companies)	8.6%	6.4%	7.1%	5.6%	8.5%
Time Technoplast ($TIMETECHNO)	17.9%	11.1%	6.2%	4.2%	6.9%

Top companies by ROIC, %


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Control Print ($CONTROLPR)	-	19.7%	22.2%	25.2%	26.2%
Essel Propack ($ESSELPRO)	8.6%	9.9%	12.5%	14.7%	16.6%
Manaksia ($MANAKSIA)	12.9%	15.5%	16.0%	11.4%	9.2%
Uflex ($UFLEX)	12.5%	9.9%	8.1%	8.4%	9.0%
Piramal Glass ($PIRAMGLAS)	16.1%	11.0%	7.6%	7.0%	-
Median (32 companies)	9.1%	9.9%	11.2%	9.9%	9.2%
Time Technoplast ($TIMETECHNO)	12.8%	13.4%	12.0%	12.9%	12.4%

Top companies by Net Debt / EBITDA


Top 5	FY2012	FY2013	FY2014	FY2015	FY2016
Hindusthan National Glass & Industries ($HINDNATGLS)	7.4x	15.8x	11.2x	10.6x	8.1x
Piramal Glass ($PIRAMGLAS)	3.1x	4.1x	4.3x	4.2x	-
Uflex ($UFLEX)	2.7x	3.0x	3.2x	2.8x	2.2x
Essel Propack ($ESSELPRO)	3.2x	2.9x	2.6x	2.2x	1.6x
Manaksia ($MANAKSIA)	1.3x	1.2x	0.3x	0.9x	0.1x
Median (20 companies)	3.2x	3.5x	0.9x	0.0x	0.0x
Time Technoplast ($TIMETECHNO)	2.6x	2.6x	2.6x	2.2x	1.9x

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.