- 30 May 2023
- ICICI Securities
Time Technoplast reports healthy set of Q4FY23 numbers
TIMETECHNO - 275 Change: -5.20 (-1.86 %)News: Time Technoplast reported revenue growth of ~15% to Rs 1192.3 crore largely driven by composite products segment. Volume growth came in at 12% YoY. Composite segment revenue grew ~26% YoY to ~Rs 392 crore. Gross margin declined 68 bps YoY (up 46 bps QoQ). However, savings in other operating costs led to increase in EBITDA margin by 84 bps YoY to 14.2%. PAT grew 14.6% YoY to Rs 65.1 crore tracking EBITDA margin improvement and topline growth.
Views: We believe that Time Technoplast reported a healthy performance on the topline front in Q4 led by composite products segment. Composite segment revenue growth was aided by execution of orders and ramp up of CNG cascades. In the last five years, revenue contribution of composite products segment to the overall revenue has grown to 33% in FY23 from ~29% in FY18. On the margin front, although EBITDA margin improved 86 bps YoY to 14.2% in Q4FY23, it is still lower than its pre-Covid margin range of ~14-15%. On the balance sheet front, overall debt of the company has reduced marginally by ~1.8% YoY in FY23 to ~| 810 crore . We continue to remain interested in the company's debt reduction plans and proceedings of overseas business restructuring going forward. We await management commentary on sustainable margin guidance.
Impact: Neutral