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    Mold-Tek Packaging Limited

    MOLDTKPAC
    Capital Goods·19 May 2025
    Management Summary

    Mold-Tek Packaging closed FY25 with an 11.8% sales growth and 7.3% volume growth, despite a 9% PAT decline due to higher depreciation and financial costs. A significant highlight was the Pharma division achieving break-even in Q4, with turnover tripling from Q3 to Q4. The company also saw a positive turnaround in the paint industry, moving from a decline to 6.8% growth, and strong 25% growth in Food and FMCG in Q4, driven by improved printing capacity. Management is optimistic about FY26, targeting double-digit growth across segments and improved EBITDA margins.

    Highlights

    5

    • Pharma division achieved break-even in Q4 FY25, with turnover jumping from ₹2.5 crores in Q3 to ₹6.7 crores in Q4.

    • Paint industry, which saw a 6.7% drop last year, is now experiencing 6.8% growth in the current financial year.

    • Food and FMCG sales clocked a healthy 25% increase in Q4 FY25 due to enhanced printing capabilities.

    • EBITDA per kg improved to ₹40.15 in Q4, crossing ₹40 after several quarters.

    • Overall sales grew by 11.8% and volumes by 7.3% for the full year FY25.

    Concerns

    2

    • PAT declined marginally by 9% for the full year, attributed to high depreciation and financial costs.

    • Paint segment growth in Q4 FY25 was tepid at only 2.07%.

    What Changed2

    vs Q1 FY26

    Guidance items12 → 10 (-2)Risks discussed4 → 3 (-1)

    Key financials

    Single quarter

    05 metrics
    1. 01Sales Growth11.8%
    2. 02Volume Growth7.3%
    3. 03EBITDA Growth7.0%
    4. 04PAT Decline-9%
    5. 05EBITDA per kg₹40.15

    Segment breakdown

    Pharma
    ₹6.7 Cr Q4 Turnover₹2.5 Cr Q3 Turnover₹11 Cr FY25 Turnover
    Paint Industry
    6.8% FY25 Growth2.1% Q4 Growth-6.7% Last Year Drop44.7% Volume Contribution
    Food and FMCG
    25% Q4 Sales Growth
    IML & HTL (Labels)
    77.4% Q4 Value Share68.5% Last Year Value Share74.4% FY25 Value Share68% FY24 Value Share
    Pail Business
    71% Volume Contribution38,000 tons Total Volume27,000 tons Pail Volume
    RCPB Consumption
    6,000 tons Volume20% Share of Pail Business
    List

    Capital allocation

    1
    high confidence
    CategoryHeadline
    Capex

    ₹70 crores

    new plan

    Guidance & targets

    10
    CategoryTargetPriority
    Pharma Turnover
    Pharma Turnover
    ₹30-35 crores
    		High
    Pharma Turnover
    Pharma Turnover
    ₹50+ crores
    		Medium
    Pharma Growth
    Pharma Top Line Growth
    2.3x to 3x
    		High
    Pharma Capacity
    Pharma Capacity
    3,000 tons per annum
    		High
    Pharma Turnover Potential
    Pharma Turnover Potential
    ₹100 crores
    		Medium
    Paint Segment Growth
    Paint Segment Growth
    double-digit growth
    		High
    Food and FMCG Growth
    Food and FMCG Growth
    15-20%
    		High
    Overall Volume Growth
    Overall Volume Growth
    15%
    		Medium
    EBITDA Margin
    EBITDA per kg
    ₹41-42
    		Medium
    RCPB Obligation
    RCPB Statutory Obligation
    30%
    		High

    Pharma Division Revenue Growth

    next quarter
    Current₹6.7 crores (Q4 FY25)
    TargetOn track for ₹30-35 crores (FY26)

    Why it matters

    Key indicator of the new segment's ramp-up and contribution to overall growth, validating management's aggressive investment.

    So, we are now looking at anywhere between Rs. 30 crores, Rs. 35 crores kind of top line for pharma in the next financial year with a very healthy EBITDA margin, which will take up the overall comprehensive EBITDA margin.

    How to verify

    key_financials.segment_breakdown[name='Pharma'].metrics[label='Q1 Turnover']

    Risks & concerns

    3
    RiskSeverity

    PAT decline due to high depreciation and financial costs

    PAT declined marginally by 9% for the full year, attributed to high provision of depreciation and financial costs. — Management acknowledged

    low

    Tepid Q4 growth in Paint segment

    Paint segment growth in Q4 was only 2.07%, though management expects improvement. — Management acknowledged

    low

    Historical muted growth in Food & FMCG due to capacity constraints

    Last year, Food & FMCG growth was below 10% (5-6%) due to lack of printing facilities and in-time supplies, which has now been addressed. — Management acknowledged

    low

    Q&A highlights

    8

    “we will be certainly crossing Rs. 30 plus crores turnover in the current financial year from Pharma and probably Rs. 50 plus crores in the '26-'27 year.”

    Analyst sought clarity on the new Pharma division's growth trajectory and commercialization progress, which management detailed with specific revenue targets and capacity expansion plans.

    asked by Jaiveer Shekhawat

    2 min read6 chapters

    Detailed Narrative

    01

    Q4 FY25 Performance Overview

    Mold-Tek Packaging reported an 11.8% sales growth and 7.3% volume growth for the full year FY25. Despite this, PAT declined marginally by 9%, primarily due to higher depreciation and financial costs. The company's EBITDA, however, grew by 7% for the full year, indicating operational strength.

    02

    Pharma Division's Break-even and Future Outlook

    The newly established Pharma division achieved break-even in Q4 FY25, marking a significant milestone. Its turnover surged from ₹2.5 crores in Q3 to ₹6.7 crores in Q4. Management projects substantial growth, targeting ₹30-35 crores in turnover for FY26 and potentially exceeding ₹50 crores by FY27, representing a 2.3x to 3x growth from FY25's ₹11 crores. The company is actively expanding capacity by adding five new injection molding machines and acquiring 2.5 acres of land for future pharma expansion.

    03

    Paint and Food & FMCG Segment Turnaround

    The paint industry, which experienced a 6.7% decline last year, rebounded to a 6.8% growth in the current financial year. While Q4 paint growth was 2.07%, management anticipates double-digit growth in FY26, driven by ABG capacity enhancements and Asian Paints' increasing adoption of IML across all four plants. The Food and FMCG segment demonstrated robust performance with a 25% growth in Q4, attributed to enhanced printing capabilities, and is targeted for 15-20% growth in FY26.

    04

    EBITDA Margin Improvement

    The company's EBITDA per kg improved to ₹40.15 in Q4 FY25, surpassing the ₹40 mark after several quarters. This positive trend is expected to continue, with a target of ₹41-42 per kg for FY26. The higher-margin Pharma segment (₹100+ EBITDA/kg) and Food & FMCG segment (₹70-80 EBITDA/kg) are anticipated to be key drivers for this overall margin expansion.

    05

    Capital Expenditure Plans

    Mold-Tek's capital expenditure for FY25 was approximately ₹140 crores. For FY26, the company has budgeted ₹70-80 crores. Key allocations include ₹20-25 crores for Pharma (land and buildings at Sultanpur), ₹14-15 crores for the Mahad plant, and ₹7-8 crores for printing machinery. An additional ₹10 crore is earmarked for land acquisition adjacent to the Sultanpur unit for future pharma expansion, reflecting a confident investment strategy.

    06

    Competitive Advantage in Pharma

    The company highlights its in-house tool room's agility as a crucial differentiator in the competitive Pharma segment. This capability allows for rapid development of new products and variations, reducing development time to 1.5-2 months compared to 4-5 months for competitors. This speed, combined with a wider product range, is expected to enable Mold-Tek to capture market share from established players by addressing specific client needs efficiently.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.