TCPL Packaging Limited has informed the Exchange about Investor Presentation
4th August 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 today i.e. 4th August 2023, inter-alia considered and approved the Un-audited Financial Results of the Company (Standalone and Consolidated) for the first quarter ended 30th June 2023.
Attached is Earnings Presentation for Q1 FY2024. 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
Q1 FY2024 Earnings Presentation 04 August 2023
Disclaimer
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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Q1 FY2024 Results Overview
3
Q1 FY24 - Key Financial Highlights Consolidated
Total Revenues (Rs. Cr.)
371.3
342.5
EBITDA (Rs. Cr.)
Cash Profit (Rs. Cr.)
54.4
61.4
47.3
48.4
Q1 FY23
Q1 FY24
Q1 FY23
Q1 FY24
Q1 FY23
Q1 FY24
Shift % (Y-o-Y)
8%
Shift % (Y-o-Y)
13%
Shift % (Y-o-Y)
2%
Margins (%)
Margins (%)
15.9%
16.5%
13.8%
13.0%
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Q1 FY24 - Key Financial Highlights Standalone
Total Revenues (Rs. Cr.)
335.5
359.7
EBITDA (Rs. Cr.)
Cash Profit (Rs. Cr.)
53.5
60.3
46.8
49.2
Q1 FY23
Q1 FY24
Q1 FY23
Q1 FY24
Q1 FY23
Q1 FY24
Shift % (Y-o-Y)
7%
Shift % (Y-o-Y)
13%
Shift % (Y-o-Y)
5%
Margins (%)
Margins (%)
16.0%
16.8%
14.0%
13.7%
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Key Developments
Appointed Andreas Blaschke as Independent Director – Significantly Strengthening Board Expertise
With over three decades of experience in the global paper, cartonboard & packaging industry, Dr. Blaschke brings a wealth of knowledge and expertise to TCPL’s Board
Having played a leadership role in a leading European Packaging Company, Dr. Blaschke's inclusion in TCPL’s Board brings immense value. His unparalleled knowledge and experience will provide invaluable guidance to the Company
Dr. Blaschke's presence on the Board will play a key role in shaping strategic decisions and his expertise will contribute to enhancing governance practices, ensuring effective and informed decision-making processes within the Company
Appointed Vidur Kanoria as Executive Director to further strengthen Business Development and Administration
Vidur Kanoria is a Bachelor of Business Administration from Boston University and joined TCPL in the year 2016
He has focused on the flexible packaging and export divisions within TCPL
Throughout his tenure, Vidur’s continuous efforts and expertise have played a crucial role in increasing the company's sales and revenues, contributing to its overall success
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Management Message
Commenting on the performance for Q1 FY2024 Mr. Saket Kanoria, Managing Director, TCPL Packaging Limited said
“We are pleased to present our first-quarter results, reflecting a promising start amidst the challenges posed by the current operating environment. Our revenue growth on a YoY basis remained steady at 8%, primarily driven by increased sales volumes from our flexible packaging division and exports, effectively offsetting subdued domestic demand and the impact of declining realizations caused by the fall in key raw material prices. Furthermore, our EBITDA showcased healthy growth of 13%, with margins improving by 64 bps to 16.5% on a YoY basis supported by a better product mix and proactive cost management.
As a Company, we remain firmly committed to our growth strategy, which centers around diversifying our presence across various end-user industries. This strategic approach has consistently allowed us to outperform our underlying industries, making us proud to be among the select few listed companies in India that have achieved continuous year-on-year revenue growth over the past 20 years, boasting an impressive CAGR of 18.4%. With a strong focus on sustainable growth, we remain committed to delivering long-term value to all stakeholders.
Looking ahead, we remain excited about the tremendous potential for packaging solutions in the FMCG and F&B industries, along with other emerging sectors. Our strategic focus on sustainable packaging positions us at the forefront of environmental stewardship and innovation, driving positive change within the industry. Embracing cutting-edge technology in our industry, we are committed to providing environmentally responsible packaging solutions that enhance product quality, prolong shelf life, and contribute to a greener planet.”
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Consolidated P&L Statement
Particulars (Rs. crore)
Q1 FY24 Q1 FY23
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.)*
363.8 7.6 371.3
213.6 35.8 60.6 61.4 16.5% 0.6 13.6 16.3 32.1 0.0 32.1 8.5 23.6 6.4% 48.4 26.13
334.2 8.3 342.5
204.6 29.9 53.6 54.4 15.9% 3.5 10.7 15.5 31.8 0.0 31.8 9.3 22.5 6.6% 47.3 24.73
Y-o-Y Change (%) 8.8% -8.9% 8.4%
4.4% 19.6% 13.2% 12.8% 64 bps -83.8% 27.3% 4.9% 1.1%
1.1% -8.0% 4.8% -22 bps 2.3% 5.7%
FY23
1442.2 32.7 1474.9
887.9 123.5 227.6 236.0 16.0% 9.6 47.4 63.9 134.3 17.3 151.6 41.1 110.5 7.5% 215.5 121.36
FY22
1065.4 20.4 1085.7
654.5 101.5 174.8 155.0 14.3% 2.9 34.2 55.9 67.8
67.8 20.9 46.9 4.3% 123.7 51.51
Y-o-Y Change (%) 35.4% 60.5% 35.8%
35.7% 21.6% 30.2% 52.3% 173 bps 236.4% 38.6% 14.3% 98.3%
123.8% 96.9% 135.7% 317 bps 74.3% 135.6%
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Standalone P&L Statement
Particulars (Rs. crore)
Q1 FY24 Q1 FY23
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.)*
352.2 7.4 359.7
209.6 33.1 56.7 60.3 16.8% 1.4 12.6 15.3 33.8
33.8 8.6 25.2 7.0% 49.2 27.69
327.2 8.3 335.5
202.0 28.4 51.5 53.5 16.0% 3.5 10.2 15.0 31.9
-
-
31.9 9.3 22.6 6.7% 46.8 24.81
Y-o-Y Change (%) 7.7% -10.5% 7.2%
3.8% 16.6% 10.0% 12.6% 80 bps -59.0% 23.6% 2.3% 6.2%
6.2% -6.9% 11.6% 28 bps 5.0% 11.6%
FY23
1400.0 31.8 1431.9
868.0 115.5 212.7 235.7 16.5% 10.0 43.6 61.0 141.1 17.3 158.4 40.8 117.5 8.2% 219.3 129.17
FY22
1055.9 20.2 1076.0
648.4 99.6 171.5 156.5 14.5% 2.4 33.4 55.3 70.2
70.2 21.0 49.3 4.6% 125.5 54.13
-
Y-o-Y Change (%) 32.6% 57.9% 33.1%
33.9% 15.9% 24.0% 50.6% 191 bps 319.3% 30.6% 10.3% 100.9%
125.5% 94.6% 138.7% 363 bps 74.8% 138.6%
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Q1 FY24: Financial & Operational Discussions (Y-o-Y)
Total Revenues
On a Consolidated basis, Total Revenues stood at Rs. 371 crore as against Rs. 342 crore, higher by 8%
Revenue growth on a year-on-year basis remained steady amidst the prevailing market dynamics
The growth was mainly fueled by higher sales volumes from our flexible packaging division and increased exports. These factors successfully compensated for weaker domestic demand and the effects of declining raw material prices
The Company demonstrated resilience by effectively navigating through market challenges, sustaining revenue growth with a strategic focus on key divisions and international markets
EBITDA
On a Consolidated basis, EBITDA came in at Rs. 61 crore, with EBITDA Margins at 16.5%
The Company demonstrated robust EBITDA growth, with margins increasing by 64 basis points year-on-year. This improvement was driven by a favorable product mix and proactive cost management efforts
Cash Profit After Tax
On a Consolidated basis, Cash PAT was healthy at Rs. 48 crore, with Cash PAT Margins at 13%
PAT came in at Rs. 24 crore
Depreciation came in at Rs. 16 crore and finance cost stood at Rs. 14 crore
10 10
Balance Sheet Snapshot – Consolidated
Rs. 467 Crore
Rs. 1,025 Crore
Rs. 885 Crore
Net-worth
Capital Employed
Fixed Assets (Gross)
Rs. 4.5 Crore
Rs. 516 Crore
89 Days
Cash & Investments
Net Debt
Net Working Capital Days
Note: As on 30th June 2023
11 11
Company Overview
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At a Glance
TCPL – One of India’s leading producers of sustainable packaging solutions for customers across industries
33
YEARS Of providing an array of packaging solutions
1,432
(RS. CRORE) Revenue (FY23)
219
(RS. CRORE) Cash Profit (FY23)
8
Manufacturing units
~2,000
Employees (FY23)
18%
15%
30 years Revenue CAGR
30 years EBITDA CAGR
15%
30 years PAT CAGR
22.5%
ROCE (FY23)
29.5%
RONW (FY23)
*Note – Calculation for Cash Profit: PBT + Depreciation; ROCE: EBIT / Avg. CE and RONW: PAT / Avg. Net Worth
Standalone figures
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Business Overview
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 (FY23)
~85%
~15%
Folding Cartons
Flexible Packaging
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Folding Carton Division
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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Flexible Packaging Division
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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Pillars of Strength
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 32 years
Deep-rooted Relationships
Innovative Products
Advanced Technology
Wide-spread Presence
Sustainability
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Pan-India Presence
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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Marquee Clients
Electronics, Pharma & Others
G C M F
FMCG
Liquor
“Enables leading companies across industries identify the right packaging solutions”
19
Food & Beverages
Sustainable Packaging – Renewable, Recyclable and Compostable
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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Sustainability Initiatives – Paperboard
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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Sustainability Initiatives – Paperboard
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
Metpet Film
INK
Paper
Glue
Pet Flim
NON-BIODEGRADABLE DIFFICULT TO RECYCLE
NON-BIODEGRADABLE DIFFICULT TO RECYCLE
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Investments towards driving higher sustainability in Flexible packaging
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 replace current multi-polymer, non-recyclable products prevalent in the market
One of the few companies in India to be equipped with such capability
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Innofilms
specializes
the TCPL manufacturing of blown polyethylene (PE) film and sustainable packaging films, enabling customers to adopt fully recyclable and sustainable packaging structures
in
TCPL is in the process of merging TCPL Innofilms, a wholly owned subsidiary to achieve Cost Efficiency and Synergies
Key Growth Levers
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
24
COPPL Acquisition – Enters high potential rigid boxes segment
Update on Creative Offset Printer Private Limited (COPPL)
TCPL further strengthened its equity stake in Creative Offset Printers Private Limited (COPPL), based in Greater Noida. COPPL specializes in the manufacture of packaging for the consumer electronics industry, as well as premium rigid box packaging. This acquisition offers several strategic advantages:
o Acquisition enables TCPL to tap into the high-potential rigid boxes segment, which is
focused on one of the fastest-growing smartphone markets in the world
o COPPL’s production facility is strategically located in Noida, allowing it to target India’s
largest electronics manufacturing hub
o Strategically diversifies TCPL’s product offering and strengthens its position as a leading
producer of sustainable packaging solutions for customers across various industries
Since both companies have production facilities in close proximity, TCPL aims to capitalize from key synergies, like cost rationalization & optimization
Haridwar
Delhi
Noida
COPPL’s Manufacturing facility
Production Production
Sales & Business Support
252525
Annexure
26
Conference Call Details
Q1 FY2024 Earnings Conference Call
Time
• 2:00 p.m. IST on Tuesday, August 08, 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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About Us
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 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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Thank You
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