TCPL Packaging Limited has informed the Exchange about Investor Presentation
8th November 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. 8th November 2023, inter-alia considered and approved the Un-audited Financial Results of the Company (Standalone and Consolidated) for the quarter and half year ended 30th September 2023.
Attached is Earnings Presentation for Q2 & H1 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
Q2 & H1 FY2024 Earnings Presentation 08 November 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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Q2 & H1 FY2024 Results Overview
3
Q2 FY24 - Key Financial Highlights Consolidated
Total Revenues (Rs. Cr.)
406.0
361.7
EBITDA (Rs. Cr.)
*Cash Profit (Rs. Cr.)
65.1
65.8
57.5
54.8
Q2 FY23
Q2 FY24
Q2 FY23
Q2 FY24
Q2 FY23
Q2 FY24
Shift % (Y-o-Y)
12%
Shift % (Y-o-Y)
13%
Shift % (Y-o-Y)
-17%
Margins (%)
Margins (%)
15.9%
16.0%
18.2%
13.5%
*Note: Q2 & H1 FY23 figures include exceptional one-off income of Rs. 17.3 crore received as insurance claim
4
Q2 FY24 - Key Financial Highlights Standalone
Total Revenues (Rs. Cr.)
EBITDA (Rs. Cr.)
*Cash Profit (Rs. Cr.)
349.0
389.0
56.1
63.6
65.9
55.0
Q2 FY23
Q2 FY24
Q2 FY23
Q2 FY24
Q2 FY23
Q2 FY24
Shift % (Y-o-Y)
11%
Shift % (Y-o-Y)
13%
Shift % (Y-o-Y)
-17%
Margins (%)
Margins (%)
16.1%
16.3%
18.9%
14.1%
*Note: Q2 & H1 FY23 figures include exceptional one-off income of Rs. 17.3 crore received as insurance claim
5
Key Developments
Strengthening the Board with the Addition of Two New Independent Directors
Sanjiv Anand’s Appointment
Mr. Sanjiv Anand, a globally recognized thought leader on strategy powered by the Balanced Scorecard, has been appointed as an Independent Director. As the Chairman of Cedar, a Forbes ranked global consulting firm, he brings a wealth of strategic expertise.
With a rich history spanning over 35 years, Mr. Anand has helped Boards, CEO & leadership teams in the development of their strategy and the transformation of their business practices. He has worked with a diverse portfolio of prestigious clients, including those in the packaging sector
Tarang Jain’s Appointment
Mr. Tarang Jain, Chairman and Managing Director of Varroc Engineering Limited, joins the board as an Independent Director. He brings to TCPL’s board a strategic vision that has propelled Varroc into a global tier-1 automotive component group, demonstrating his capacity for driving significant international expansion and innovation in technology.
With over 35 years of leadership experience, his tenure is marked by strong values of integrity and a commitment to corporate social responsibility, illustrated by Varroc’s active role in environmental initiatives
6
Key Developments
Update on Capex Initiatives
Successfully commissioned a new advanced offset printing line, complemented by modern ancillary equipment at the Haridwar facility
7
Awards & Accolades Received in H1 FY24
TCPL has been recognized as the "PrintWeek Printing Company of the Year 2023" at the prestigious PrintWeek Awards 2023
The Company has also been recognized as "Innovative Printer of the Year 2023" (PET, LDPE, HDPE, PVC, PP, METAL/GLASS) by PrintWeek magazine
Creative Offset Printers Pvt Ltd, Noida, a TCPL subsidiary, has been recognized by Samsung India as the Best Vendor for EHS Activities, with a perfect score of 100/100
8
Awards & Accolades Received in H1 FY24
At the “IFCA Awards 2023,” organized by The Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA), TCPL won six awards across various categories, with accolades for the following SKUs:
Folding Carton Category:
o Cavin Kare Meera Onion Hair Oil carton
o BC Hasaram’s Madhushani carton
o
Indulekha Bringha Oil carton
Flexible Packaging Material:
o Bowlers Allana Pouch
o
Jimmy Joy Plenny Shake Pouch
o Paper Pouch for Rajnigandha
acknowledgments
These commitment excellence and innovation in the packaging industry
TCPL’s to maintaining a high standard of
underscore
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Management Message
Commenting on the performance for Q2 & H1 FY2024 Mr. Saket Kanoria, Managing Director, TCPL Packaging Limited said
“We have reached a significant milestone this quarter by achieving the highest revenue run-rate in our history, surpassing the Rs. 400 crore mark. This remarkable achievement can be attributed to the healthy contribution from both the folding carton and flexible packaging business segments. Amid a challenging operating environment, we have delivered a solid performance of 12% Y-o-Y growth in consolidated revenues. Additionally, we recorded a 13% Y-o-Y improvement in EBITDA, reaching Rs. 65 crore in Q2, supported by steady margins of 16%.
In a continued effort to fortify our Board of Directors, we proudly announce the addition of two new esteemed independent directors, Mr. Sanjiv Anand and Mr. Tarang Jain. These appointments come after the significant induction of Dr. Andreas Blaschke as a Non-Executive Independent Director earlier this year. The collective expertise and insights of Mr. Anand and Mr. Jain are set to further enhance the strategic oversight and governance at TCPL, aligned with our commitment to uphold the highest standards on our board.
remains committed
to driving a sustainable Looking ahead, TCPL transformation within the packaging industry, echoing global trends towards eco-friendly solutions. With India's push for self-reliance in manufacturing, the company is well-positioned to meet the rising demand for sustainable packaging solutions across various industries.”
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Consolidated P&L Statement
Particulars (Rs. crore)
Q2 FY24 Q2 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.)*
398.7
7.2
406.0
235.3
36.4
69.1
65.1
354.6
7.2
361.7
218.7
30.0
55.6
57.5
16.0%
15.9%
-
2.8
13.1
18.2
36.6
36.6
7.3
29.3
7.2%
54.8
32.19
2.4
11.4
15.9
32.7
17.3
49.9
10.4
39.5
10.9%
65.8
43.43
Y-o-Y Change (%) 12.5%
1.0%
12.2%
7.6%
21.7%
24.4%
13.3%
15
15.4%
15.0%
14.9%
12.0%
-26.7%
-29.9%
-25.9%
-371
-16.7%
-25.9%
H1 FY24
H1 FY23
762.5
14.8
777.3
448.9
72.2
129.7
126.5
16.3%
3.3
26.7
34.5
68.7
-
68.7
15.8
52.9
6.8%
103.2
58.12
688.8
15.5
704.2
423.3
59.8
109.1
111.9
15.9%
5.9
22.1
31.4
64.4
17.3
81.7
19.7
62.0
8.8%
113.1
68.16
*Note: Q2 & H1 FY23 figures include exceptional one-off income of Rs. 17.3 crore received as insurance claim
Y-o-Y Change (%) 10.7%
-4.3%
10.4%
6.0%
20.7%
18.9%
13.1%
39
-43.6%
20.9%
9.9%
6.7%
-15.9%
-19.6%
-14.7%
-200
-8.7%
-14.7%
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Standalone P&L Statement
Particulars (Rs. crore)
Q2 FY24 Q2 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.)*
382.1
7.0
389.0
227.8
33.7
63.9
63.6
341.9
7.2
349.0
213.1
28.1
51.7
56.1
16.3%
16.1%
3.6
12.2
17.2
37.8
-
37.8
7.4
30.4
7.8%
55.0
33.35
2.8
10.3
15.0
33.6
17.28
50.9
10.3
40.6
11.6%
65.9
44.56
Y-o-Y Change (%) 11.8%
-2.5%
11.5%
6.9%
20.0%
23.6%
13.4%
27
30.1%
18.8%
14.7%
12.5%
-25.7%
-27.9%
-25.2%
-382
-16.5%
-25.2%
H1 FY24
H1 FY23
734.3
14.4
748.7
437.4
66.8
120.6
123.9
16.5%
5.0
24.8
32.5
71.6
-
71.6
16.1
55.5
7.4%
104.1
61.04
669.0
15.5
684.5
415.1
56.5
103.2
109.6
16.0%
6.3
20.4
30.0
65.4
17.28
82.7
19.6
63.1
9.2%
112.7
69.37
*Note: Q2 & H1 FY23 figures include exceptional one-off income of Rs. 17.3 crore received as insurance claim
Y-o-Y Change (%) 9.8%
-6.8%
9.4%
5.4%
18.3%
16.8%
13.0%
53
-19.4%
21.2%
8.4%
9.4%
-13.4%
-18.0%
-12.0%
-181
-7.6%
-12.0%
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Q2 FY24: Financial & Operational Discussions (Y-o-Y)
Total Revenues
On a Consolidated basis, Total Revenues stood at Rs. 406 crore as against Rs. 362 crore, higher by 12%
TCPL hit a major milestone this quarter, achieving the highest revenue run-rate in its history, surpassing Rs. 400 crore
Strong contributions from both the folding carton and flexible packaging business segments assisted revenue growth
Despite a challenging operating environment, the Company delivered impressive results, with a 12% Y-o-Y growth in consolidated revenues
EBITDA
On a Consolidated basis, EBITDA came in at Rs. 65 crore, with EBITDA Margins at 16%
The Company demonstrated healthy EBITDA growth, with margins increasing by 15 basis points year-on-year
This improvement was supported by a better product mix and proactive cost management
Cash Profit After Tax
On a Consolidated basis, Cash PAT stood at Rs. 55 crore, with Cash PAT Margins at 14%
PAT came in at Rs. 29 crore
Depreciation came in at Rs. 18.2 crore and finance cost stood at Rs. 13.1 crore
13 13
Balance Sheet Snapshot – Consolidated
Rs. 477.6 Crore
Rs. 1,084.1 Crore
Rs. 968.2 Crore
Net-worth
Capital Employed
Fixed Assets (Gross)
Rs. 44.7 Crore
Rs. 526.6 Crore
100 Days
Cash & Investments
Net Debt
Net Working Capital Days
Note: As on 30th September 2023
14 14
Company Overview
15
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
1,475
(RS. CRORE) Revenue (FY23)
216
(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
20%
ROCE (FY23)
28%
RONW (FY23)
*Note – Calculation for Cash Profit: PBT + Depreciation; ROCE: EBIT / Avg. CE and RONW: PAT / Avg. Net Worth
Consolidated figures
16
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
18
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
20
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
21
Expanding Global Footprint
Revenue Break-Up
Exports 26%
Domestic 74%
Export Revenue stood at Rs. 367 crore for FY23
“As a ‘Star Export House’, TCPL offers exemplary value to its clients along with world-class quality and service”
22
Marquee Clients
Electronics, Pharma & Others
G C M F
FMCG
Liquor
“Enables leading companies across industries identify the right packaging solutions”
23
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
25
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
26
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
27
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
28
COPPL Acquisition – Enters high potential rigid boxes segment
Update on Creative Offset Printer Private Limited (COPPL)
TCPL has recently increased its stake in COPPL to ~95%
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
292929
Annexure
30
Conference Call Details
Q2 & H1 FY2024 Earnings Conference Call
Time
• 3:00 p.m. IST on Thursday, November 09, 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
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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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