TCPL Packaging Limited has informed the Exchange about Investor Presentation
06.02.2023
The Bombay Stock Exchange Ltd Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai 400 001 Security Code:-523301
The National Stock Exchange of India Ltd
Exchange Plaza, Plot No. C/1, G Block Bandra Kurla Complex, Bandra East, Mumbai 400 051 Trading Symbol:- TCPLPACK
Dear Sir(s),
Re:- Earnings Presentation
We wish to inform you that Board of Directors of the company in their Meeting held on 06.02.2023, inter-alia considered and approved the Unaudited Financial Results of the Company (Standalone and Consolidated) for the quarter / nine months ended 31.12.2022.
Attached is Earnings Presentation for Q3 & 9M FY 2023. We request you to take the above on your records in the interest of general public at large.
Thanking You
For TCPL Packaging Limited
Compliance Officer
Encl. As above
06 February 2023
Certain statements and opinions with respect to the anticipated future in the presentation performance of TCPL Packaging Limited (TCPL) (“forward-looking statements”), which reflect various assumptions concerning the strategies, objectives and anticipated results may or may not prove to be correct. Such forward-looking statements involve several risks, uncertainties and assumptions which could cause actual results or events to differ materially from those expressed or implied by the forward- looking statements. These include, among other factors, changes in economic, political, regulatory, business or other market conditions. Such forward-looking statements only speak as at the date the presentation is provided to the recipient and TCPL is not under any obligation to update or revise such forward-looking statements to reflect new events or circumstances. No representation or warranty (whether express or implied) is given in respect of any information in this presentation or that this presentation is suitable for the recipient’s purposes. The delivery of this presentation does not imply that the information herein is correct as at any time after the date hereof and TCPL has no obligation whatsoever to update any of the information or the conclusions contained herein or to correct any inaccuracies which may become apparent after the date hereof.
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TCPL – One of India’s leading producers of sustainable packaging solutions for customers across industries
32
YEARS
Of proving an array of packaging solutions
1,078
(RS. CRORE)
Revenue (FY22)
126
(RS. CRORE)
Cash Profit* (FY22)
8
Manufacturing units
~1,900
Employees (FY22)
19.8%
30 years Revenue CAGR
15.5%
30 years EBITDA CAGR
26.8%
30 years PAT CAGR
*Note – Calculation for Cash Profit: PBT + Depreciation
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One of India’s largest Folding Carton manufacturers and convertors of paperboard
Innovative player in the Flexible packaging industry
Close-to-Demand Pan-India Footprint to fast-track growth
Caters to Consumer Goods, Food & Beverage, Tobacco, Liquor, Agro-Chemicals, Pharma, and various other industries
Accredited with international certifications of quality and implemented Integrated Management System (IMS) for all- round quality assurance
Revenue Mix (FY22)
~85-90%
~10-15%
Folding Cartons
Flexible Packaging
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One of India's leading Carton Packaging companies since 1990s driven by adoption of industry- leading technology
Offers wide-range of innovative, sustainable & unique packaging solutions
Well-positioned to support diverse customer requirements with PAN India presence and network
MONOCARTONS
SPECIALTY & GIFT PACKAGING
SHELF READY PACKS
FOOD & BEVERAGES PACKAGING
PHARMA PACKAGING
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Innovative player providing versatile and sustainable solutions to customers across industry verticals
Offers a variety of products including Pouches, Laminates, Shrink Sleeves, and Wrap Around Labels
POUCHES
SHRINK SLEEVES
WRAP AROUND LABELS
LAMINATES
TIPPING PAPER
BUNDLE PAPER, INNER FRAMES & SOFT PACKS
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Developing creative solutions by a dedicated team with proven capabilities
Equipped with latest state-of- the-art machines
Several technical collaborations to ensure efficiency & productivity
Operates multiple manufacturing units
Vast market network across India and Oversees
Consistent investment in sustainable packaging solutions
Long-term connect with marquee clients spanning over 31 years
Deep-rooted Relationships
Innovative Products
Advanced Technology
Wide-spread Presence
Sustainability
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Close-to-demand strategy has enabled TCPL to emerge as one of India’s leading sustainable packaging solution providers
Headquartered in Mumbai,
TCPL operates 8 manufacturing
units across 5 locations & has
marketing offices in key metro
cities
Note: Silvasa and Haridwar have 3 & 2 manufacturing units, respectively
*Haridwar
Delhi
Noida
*Silvassa
Mumbai
Goa
Bangalore
Guwahati
Kolkata
Production Production
Sales & Business Support
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Electronics, Pharma & Others
G C M F
FMCG
Liquor
“Enables leading companies across industries identify the right packaging solutions”
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Food & Beverages
Growing global trend towards eco-friendly packaging solutions
fueled considerable growth over the last decade
o Ever increasing end-consumer awareness and demand for
eco-friendly & recyclable offerings
Paperboard is
a naturally Renewable, Recyclable and
Compostable material
o TCPL utilizes a mix of virgin (renewable) & recycled
paperboard as raw material
TCPL is continuously working with potential and existing clients
to transition from plastic to paper-based packaging
o Most of the Company’s packaging solutions are 100%
Renewable, Recyclable and Compostable
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Replacement of plastic in food packaging – Working on replacement of non-sustainable materials like plastic food trays with biodegradable and environmentally friendly alternatives.
Replacement of plastic in e-commerce – Working on solutions to cut down on plastics in e-commerce and online delivery platforms
Paperboard Food Tray
BIODEGRADABL E EASY TO RECYCLE
Plastic Food Tray
NON- BIODEGRADABL E DIFFICULT TO RECYCLE
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Metallised Board – developed in-house facility to transfer metallised effects on paperboard, giving the same quality and finish as metallised plastic film widely used in the industry
Replacement of plastic film lamination and plastic extrusion for food and other barrier packaging We are also working on alternative water-based coatings to replace plastic film lamination or plastic extrusion coating, for example plastic- lined cups and food packaging, with sustainable solutions
New Structure
Paper
Direct Desposition of Metallic Particles
INK
New Structure
Paper
Water Based Coating
Current Structure
BIODEGRADABLE EASY TO RECYCLE
Current Structure
BIODEGRADABLE EASY TO RECYCLE
Paper
Glue
Metpen Film
INK
Paper
Glue
Pet Flim
NON-BIODEGRADABLE DIFFICULT TO RECYCLE
NON-BIODEGRADABLE DIFFICULT TO RECYCLE
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TCPL INNOFILMS SPECIALTY
CURRENT STRUCTURE
NEW STRUCTURE
PET
Adhesive
PE
InnoPure
Adhesive
PE
Non - RECYCLABLE
100% RECYCLABLE
(Above is an example of a common structure in the market)
(Above is an example of the use of our specialty PE Film)
•
•
•
•
The unique technology being employed by Innofilms offers specially oriented PE films to replace typically stiffer films like Polyester (PET)
Such specially oriented PE films, once laminated with another layer of sealant PE film, will result in a mono-polymer packaging product
This development will help in replacing current multi-polymer, non-recyclable products prevalent in the market
This plant is one of a kind and the Company will be amongst the very few companies in India to be equipped with such capability
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TCPL
In 2021, TCPL incorporated a subsidiary Ltd to company blown manufacture polyethylene (PE) film and sustainable packaging films
Pvt distribute
Innofilms
and
These films will enable customers to shift towards fully recyclable and sustainable packaging structures
Scale Improving consolidation in a largely unorganized industry
Pan-India Presence Close-to-demand strategy to drive growth
Sustainable Packaging Solutions Emerging as a major growth opportunity
Partnership with Customers Leverage existing relationship to gain higher wallet share
Investment in New Technologies Leveraging latest technology to expand market opportunity
Diversification Focused approach towards growth through diversification
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About Creative Offset Printer Private Limited (COPPL)
Acquisition Details
Incorporated in 2002, COPPL was started by Mr. Rohit Khanna & Ms. Gazal Dhillon
TCPL acquired a majority stake (83% equity stake) in COPPL as of July 2022
Since both companies have production facilities in close proximity, TCPL aims to capitalize from key synergies, like cost rationalization & optimization
Core business is manufacturing of rigid packaging boxes
Strategically located at Noida, COPPL’s production facility is well-equipped to target mobile manufacturing hub
largest
India’s
Associated with major mobile firms operating in Noida including Samsung & supplies various types of mobile boxes
Taps high potential rigid boxes segment focused on one of the fastest growing smartphone markets in the world
product
& Diversifies leading strengthens position as producer of sustainable packaging solutions for customers across industries
offering a
Haridwar
Delhi
Noida
COPPL’s Manufacturing facility
Production Production
Sales & Business Support
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Total Revenues (Rs. Cr.)
378.1
276.5
EBITDA (Rs. Cr.)
Cash Profit (Rs. Cr.)
60.5
50.0
41.8
34.7
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Shift % (Y-o-Y)
36.7%
Shift % (Y-o-Y)
44.8%
Shift % (Y-o-Y)
43.9%
Margins (%)
Margins (%)
15.1%
16.0%
12.6%
13.2%
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Total Revenues (Rs. Cr.)
366.4
274.1
EBITDA (Rs. Cr.)
Cash Profit (Rs. Cr.)
60.3
52.1
41.6
34.8
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Q3 FY22
Q3 FY23
Shift % (Y-o-Y)
33.7%
Shift % (Y-o-Y)
45.1%
Margins (%)
Shift % (Y-o-Y)
49.9%
Margins (%)
15.2%
16.5%
12.7%
14.2%
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Update on the acquisition of Creative Offset Printers Private Limited (COPPL)
TCPL further invested in the Rights Issue of COPPL and has been allotted 45,844 equity shares, aggregating to Rs. 2.59 crore
o Post the allotment of shares, TCPL now holds 84.07% in COPPL
TCPL enhances its diverse portfolio with entry into the high-margin rigid boxes market to tap the expanding smartphone and electronics sector
Successfully onboarded several customers in this segment and expects to enhance share of wallet in the upcoming quarters
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Commenting on the performance for Q3 & 9M FY2023 Mr. Saket Kanoria, Managing Director, TCPL Packaging Limited said
“We have delivered a robust performance during the period under review, despite the ongoing macroeconomic challenges. On a consolidated basis, our topline expanded by 37% and 43% on a year-over-year basis in Q3 & 9M FY23 on the back of higher volumes and better realizations, demonstrating the strength of our resilient business model. In Q3 & 9M FY23, our PBT expanded by 68% and 121%, while our PAT grew to 75% and 184%, respectively, on a year-over-year basis.
In a key development, we have further invested in the Creative Offset Printers Private Limited (COPPL) Right Issue to increase our stake to ~84% post allotment of shares. We remain excited about our entry into the high-potential rigid box segment, as we aim to capture a share of the rapidly growing smartphone market. This move is aligned with our strategy of growth through diversification and strengthens our long-term growth prospects.
Paperboard, being a naturally renewable and sustainable product, is playing a crucial role in the worldwide transition towards environmentally responsible packaging solutions. Given our leadership position in the sector, we are taking steps to promote the use of sustainable solutions. This includes working with customers to replace non-sustainable materials, such as plastic food trays, with biodegradable alternatives, as well as establishing an in- house process to transfer metallized effects onto paperboard, reducing the reliance on metallized plastic film.
In the flexible packaging space, TCPL has started commercial production of eco-friendly Polyethylene (PE) blown films. These films will also allow customers to shift towards recyclable and sustainable packaging solutions and replace the non-recyclable multi-polymer products prevalent in the market.
Overall, our focused strategy for growth through diversification has enabled us to consistently outperform our underlying industries. We remain committed to sustainably growing the Company in the future, which will help create sustainable value for all our stakeholders.”
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Particulars (Rs. crore)
Q3 FY23 Q3 FY22
Y-o-Y Change (%)
9M FY23
9M FY22
Y-o-Y Change (%)
Revenues from Operations
Other Operating Income
Total Revenues
Total Expenditure
• Raw Material expenses
• Employee benefits expense
• Other expenses
EBITDA
EBITDA Margin (%)
Other Income
Finance Costs
Depreciation and Amortization
PBT
Exceptional Items
PBT after Exceptional Items
Tax expense
PAT
PAT Margin (%)
Cash Profit
EPS Diluted (Rs.)
370.1
8.0
378.1
228.1
33.3
56.2
60.5
271.6
4.9
276.5
165.6
25.2
43.9
41.8
16.0%
15.1%
1.7
12.3
15.8
34.2
0.0
34.2
9.9
24.3
6.4%
50.0
26.66
1.5
8.6
14.4
20.4
0.0
20.4
6.5
13.9
5.0%
34.7
15.25
36.2%
64.8%
36.7%
37.7%
32.1%
28.1%
44.8%
89 bps
13.7%
43.2%
10.0%
67.7%
67.7%
52.6%
74.8%
140 bps
43.9%
74.8%
1058.8
23.5
1082.3
651.4
93.2
165.4
172.4
15.9%
7.7
34.3
47.2
98.6
17.3
115.9
29.6
86.3
8.0%
163.0
94.82
742.2
13.4
755.6
453.1
74.3
120.1
108.1
14.3%
2.1
24.3
41.3
44.6
0.0
44.6
14.2
30.4
4.0%
85.9
33.44
42.7%
75.7%
43.2%
43.8%
25.4%
37.6%
59.5%
162 bps
271.8%
41.3%
14.3%
120.8%
159.5%
107.9%
183.7%
395 bps
89.8%
183.6%
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Particulars (Rs. crore)
Q3 FY23 Q3 FY22
Y-o-Y Change (%)
9M FY23
9M FY22
Y-o-Y Change (%)
Revenues from Operations
Other Operating Income
Total Revenues
Total Expenditure
• Raw Material expenses
• Employee benefits expense
• Other expenses
EBITDA
EBITDA Margin (%)
Other Income
Finance Costs
Depreciation and Amortization
PBT
Exceptional Items
PBT after Exceptional Items
Tax expense
PAT
PAT Margin (%)
Cash Profit
EPS Diluted (Rs.)
358.4
8.0
366.4
222.7
31.2
52.2
60.3
269.2
4.9
274.1
164.2
24.9
43.5
41.6
16.5%
15.2%
3.0
11.3
15.1
37.1
0.0
37.1
10.2
26.9
7.3%
52.1
29.51
1.5
8.4
14.2
20.6
0.0
20.6
6.5
14.1
5.1%
34.8
15.44
33.1%
64.6%
33.7%
35.7%
25.4%
20.0%
45.1%
130 bps
97.4%
34.7%
6.0%
80.3%
80.3%
57.1%
91.0%
220 bps
49.9%
91.1%
1027.4
23.5
1050.9
637.8
87.7
155.4
170.0
16.2%
9.3
31.7
45.1
102.5
17.3
119.8
29.8
90.0
8.6%
164.9
98.88
739.8
13.4
753.2
451.6
73.9
119.6
108.1
14.3%
2.1
24.1
41.1
45.0
0.0
45.0
14.2
30.7
4.1%
86.1
33.78
38.9%
75.5%
39.5%
41.2%
18.6%
30.0%
57.3%
183 bps
350.0%
31.6%
9.6%
128.0%
166.4%
109.6%
192.7%
448 bps
91.6%
192.7%
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Total Revenues
On a Consolidated basis, Total Revenues stood at Rs. 378 crore as against Rs. 277 crore, higher by 37%
On a YoY basis, the Company reported strong revenue growth on the back of healthy contribution from both business segments
Stable realizations and better volumes in the domestic and international markets contributed towards performance
The Company is expecting demand trends to stay steady in the upcoming months due to encouraging growth prospects
EBITDA
On a Consolidated basis, EBITDA came in at Rs. 61 crore, with EBITDA Margins at 16%
The Company registered strong margin performance as it was able to efficiently pass on raw material price increases witnessed during the period under review along with higher operating leverage
Cash Profit After Tax
On a Consolidated basis, Cash PAT was healthy at Rs. 50 crore, with Cash PAT Margins at 13%
PAT improved by 75% to Rs. 24 crore
Depreciation came in at Rs. 16 crore and finance cost stood at Rs. 12 crore
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Rs. 424.8 Crore
Rs. 965.1 Crore
Rs. 949.8 Crore
Net-worth
Capital Employed
Fixed Assets (Gross)
Rs. 5.9 Crore
Rs. 478.6 Crore
110 Days
Cash & Investments
Net Debt
Net Working Capital Days
Note: As on 31st December 2023
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Q3 & 9M FY2023 Earnings Conference Call
Time
• 3:00 p.m. IST on Monday, February 13, 2023
Pre-registration
To enable participants to connect to the conference call without having to wait for an operator, please register at the below mentioned link:
Primary dial-in number
• + 91 22 6280 1141 / 7115 8042
• Hong Kong: 800 964 448
International Toll-Free
• Singapore: 800 101 2045
Number
• UK: 0 808 101 1573
• USA: 1 866 746 2133
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TCPL Packaging Limited (TCPL) (BSE: 523301, NSE: TCPLPACK), is one of India’s leading producers of sustainable packaging solutions for customers across industries. The Company partners to provide paperboard-based packaging with customers solutions including folding cartons, printed blanks and outers, litho-lamination, plastic cartons, blister packs, and shelf-ready packaging. TCPL has also ventured into the flexible packaging industry, with capability to produce printed cork-tipping paper, laminates, sleeves, and wrap-around labels.
Headquartered in Mumbai, India, TCPL has a PAN India presence with 8 state-of-the-art manufacturing facilities and marketing offices in key metro cities. Over the years, the Company has effectively diversified and broadened its operations to service a wide range of packaging products, while consistently adding new customers and increasing its share of business in established customers and markets.
For further information, please contact:
Vivek Dave
TCPL Packaging Limited
Tel: +91 70454 57686
Email: vivek.dave@tcpl.in / investors@tcpl.in
Anoop Poojari / Jenny Rose Kunnappally
CDR India
Tel: +91 98330 90434 / 86899 72124
Email: anoop@cdr-india.com / jenny@cdr-india.com
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