Time Technoplast Limited

Time Technoplast reported a robust FY25, with consolidated revenue growing 9% YoY to INR 5,462 crores and PAT increasing 25% YoY to INR 388 crores. This performance was significantly driven by the composite products segment, which saw a 30% growth and contributed 27% to total revenue, up from 26% in FY24. The company also achieved its targeted ROCE of 18.1% for the fiscal year, reflecting effective capacity optimization and financial discipline.

The company's strategy to shift towards value-added products is yielding results, with this segment growing 15% compared to 7% for established products. Management aims to increase the contribution of value-added products to 35% of total sales within the next two years and targets an EBITDA margin of 15.5% in three years, up from the current 14.5%. This margin improvement is expected to be driven by the favorable product mix and ongoing cost reduction initiatives, including automation.

Time Technoplast maintains a strong order book, including INR 185 crores for Type 4 composite cylinders and INR 445 crores for Industrial Packaging for the current calendar year. The company is investing INR 125 crores in CNG expansion, with INR 80-85 crores already deployed, aiming to increase its cascade capacity from 480 to 1,080 and boost revenue potential from INR 350 crores to INR 800 crores. Commercial production from this expanded capacity is anticipated in the second half of the current financial year.

The greenfield expansion for CNG production, while slightly delayed due to regulatory approvals and international disturbances, is expected to commence commercial production in Q3 FY26. Concurrently, the company has secured approvals for Type-III hydrogen cylinders for drone applications and Type-IV composite cylinders for hydrogen, with initial trials and development underway. A new unit near Vapi is being constructed to house composite, CNG, and hydrogen product manufacturing, with land and building possession expected by July.

Following the merger of NED Energy Limited and Power Build Batteries Private Limited, the company is launching E-Rickshaw batteries, with commercial sales expected to begin in Q2 FY26. These low-maintenance batteries, developed with an investment of INR 4-5 crores, are targeting the secondary market and are estimated to generate INR 30 crores in business initially. The company highlights a 20% performance advantage over competitors, with batteries enabling 150 km range per charge.

The company successfully reduced its debt by INR 98 crores in FY25, with net debt reduction of INR 122 crores, and aims to become debt-free within two years. Annual CAPEX is projected to remain up to INR 200 crores for the next three years, allocated towards maintenance, reengineering, automation (INR 80-85 crores), and brownfield expansion for new and value-added products (INR 122 crores). Management emphasized a prudent capital allocation approach, opting against equity dilution given a 9% cost of debt versus a 20% ROCE target.

Time Technoplast has formed Time Ecotech Private Limited, a 100% subsidiary, to focus on sustainability and the use of reprocessed materials, aligning with government regulations. The company plans to invest INR 120 crores over the next 3-4 years to set up captive consumption plants across India, starting with the Western region. Additionally, the company is establishing a steel drum plant in the Middle East with an investment of approximately INR 30 crores to cater to existing customers and capture a segment where steel drums are still required.