The shares of this smallcap company jumped around 5 percent in Tuesday’s trading session after announcing an increase in net profit by 41 percent YoY. In one year, the stock has delivered more than 160 percent return to its shareholders.
Price Movement:
With a market capitalization of Rs. 8,036 crores, the share of Time Technoplast Ltd started Tuesday’s trading session on a higher note at Rs. 349 compared to its previous close of Rs. 342.90. During the trading session, the shares hit a high of Rs. 364.80, gaining around 5 and are currently trading at Rs. 353 apiece.
Is Time Technoplast a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What Happened:
Such a positive movement in the share price was observed after the company announced Q1FY25 results. Quarterly, the revenue decreased by 12 percent from Rs. 1,394.32 crores during the March quarter to Rs. 1,230.05 crores in the June quarter. On the other hand, the net profits declined by 15 percent from Rs. 94.26 crores to Rs. 80.46 crores during the same period.
However, on a YoY basis, the revenue jumped by 14 percent from Rs. 1,079.32 crores during Q1FY24 to Rs. 1,230.05 crores in Q1FY25. In addition, the net profits zoomed by 41 percent from Rs. 57.06 crores to Rs. 80.46 crores during the same timeframe.
For Q1 of FY 2024-25, EBITDA reached Rs 148.2 crores, an increase from Rs 175.1 crores in Q1 of FY 2023-24, reflecting year-over-year growth of 18 percent. Additionally, the EBITDA margin for Q1 of FY 2024-25 improved to 14.2 percent, compared to 13.7 percent in Q1 of FY 2023-24.
Looking at the revenue mix, during the quarter the company derived 65 percent of its revenue from Polymer Products and 35 percent from Composite Products.
Further, during the quarter, the company also received approval from the Petroleum and Explosives Safety Organisation (PESO) for manufacturing of High-Pressure Type IV Composite Cylinder for Hydrogen.
Additionally, the company holds an order book of Rs. 1,750 million for Composite Cylinders (CNG Cascades) and Rs. 2,000 million for PE Pipes.
Market Leader:
Time Technoplast Limited is one of the leading manufacturers of technology-based polymer and composite products with a Strong presence in Asia & MENA regions. It is the largest manufacturer of large-size plastic drums with a market share of around 55 percent.
Customer Base:
The company has a strong customer base with some well-known Marquee clients including BASF, Huntsman, Bayer (ETR:BAYGN), Du Pont, Indian Oil (NS:IOC), Gulf, ExxonMobil, Total, Ashok Leyland (NS:ASOK), Tata Motors (NS:TAMO), Cargill, GE, L&T, and many others.
Important Financial Ratios:
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 12.16 percent and a return on capital employed (RoCE) of 17.93 percent for the period spanning FY23-24. Additionally, during the same period, the net profit margin stood at 6.32 percent.
Company Profile:
Time Technoplast Ltd is a multinational company specializing in the manufacture of innovative plastic products across various sectors.
Written By Vaibhav Patil
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