TCPL Packaging Limited has informed the Exchange about Investor Presentation
3rd November 2021
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 3rd November 2021, inter-alia considered and approved the Unaudited Financial Results of the Company (Standalone and Consolidated) for the quarter / half year ended 30th September 2021.
Attached is Earnings Presentation for Q2 & H1 FY 22. 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
03 November 2021
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
31
YEARS
906
(RS. CRORE)
99
(RS. CRORE)
17.7%
7
~1,900
Of proving an array of packaging solutions
Revenue (FY21)
Cash Profit* (FY21)
15 years Revenue CAGR (FY07 to FY21)
Manufacturing units
Employees (FY21)
*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 (FY21)
~85%
~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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Liquor
Agrochemical, Pharma & Others
FMCG
Tobacco
“Enables leading companies across industries identify the right packaging solutions”
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Food & Beverages
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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Total Revenues (Rs. Cr.)
245.1
253.0
EBITDA (Rs. Cr.)
37.2
36.1
Cash Profit (Rs. Cr.)
28.5
28.5
Q2 FY21
Q2 FY22
Q2 FY21
Q2 FY22
Q2FY21
Q2 FY22
Shift % (Y-o-Y)
3.2%
Shift % (Y-o-Y)
-2.8%
Shift % (Y-o-Y)
0.0%
Margins (%)
Margins (%)
15.5%
14.6%
11.6%
11.3%
Note: Standalone figures
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TCPL has entered into an agreement to acquire Creative Offset Printers Private Limited (COPPL)
Enters high potential rigid boxes segment – to cater one of the fastest growing smartphone markets in the world
Diversifies product offering and strengthens the Company’s position as a leading producer of sustainable packaging solutions for customers across industries
Acquisition aligned with TCPL's strategic objective to grow by leveraging its scale and institutional capabilities in a largely unorganized industry
The Company anticipates notable synergies including rationalization and optimization of various costs as their manufacturing facilities are in close proximity
To acquire a majority stake and take control of the Board of Directors
Mr. Rohit Khanna to continue in a leadership position under the guidance of the Board
The completion of the transaction is subject to satisfactory accomplishment of certain conditions precedent
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Update on expansion
Second manufacturing line in the Flexible Packaging segment progressing well
o The Company expects to start operations this fiscal
o Unit will effectively double the segment’s capacity
Installation of state-of-the-art innovative Polyethylene (PE) blown film line at Silvassa is also on track
o One of the first few such facilities in the World
o Given increasing customer preference for sustainable & recyclable solutions, end-products based on this environmentally friendly Machine-Direction Orientation (MDO) technology is anticipated to receive healthy traction
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Commenting on the performance for Q2 & H1 FY22 Mr. Saket Kanoria, Managing Director, TCPL Packaging Limited said
“TCPL has shown strong resilience and achieved another quarter of steady performance amidst a challenging operating environment. While gross margins were impacted owing to rising raw material prices, we were able to minimize the impact on EBITDA margins by managing our operating costs. We continue to see raw material inflation in the ongoing quarter; however, we are working with our customers to undertake adequate price hikes to normalize our margins.
In a key development, we are excited to announce that we have entered into a definitive share purchase agreement to acquire Creative Offset Printers Private Limited (COPPL), a strategic move geared towards further diversifying the Company’s product offerings and strengthening our long-term growth prospects. With this acquisition, TCPL enters the high- potential rigid box segment and will cater to one of the world's fastest-growing smartphone markets.
Our expansion plans in the flexible segment are progressing well and will be concluded by the end of this fiscal. Additional capacities and pick up in demand momentum should enable us deliver strong growth rates in the coming years. Overall, we believe TCPL is well poised to capitalize on the rising demand for sustainable packaging solutions from leading brands and would support our endeavour to create value for all stakeholders.”
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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 to acquire a majority stake in COPPL
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 mobile target 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
Diversifies product offering & strengthens position as a leading producer of sustainable packaging solutions for customers across industries
To acquire 60% equity stake
Haridwar
Delhi
Noida
COPPL’s Manufacturing facility
Guwahati
Kolkata
Silvassa
Mumbai
Goa
Bangalore
Production Production
Sales & Business Support
TCPL has a PAN-India presence
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Indian Smart phone market
• One of
the fastest growing markets for smartphones in the World with high value add
• Over the years, Indian Smartphone shipment has grown tenfold, exceeding markets such as North America, Latin America, and Africa
• India is
the world’s 2nd largest mobile manufacturing country, and is vying for the top spot by attracting global giants with production-linked incentives (PLI)
for
o This bodes well
the rigid box manufacturing business, which caters to the mobile industry for not only the Indian market but for exports as well
Indian Smartphone Shipment (Million)
173
150
2011 to 2020 CARG: ~26%
14.5
2011
Source: Statista 2021
2020
2021 F
High potential rigid packaging segment: To tap one of the fastest growing smartphone markets in the world
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Particulars (Rs. crore)
Q2 FY22 Q2 FY21
Y-o-Y Change (%)
H1 FY22
H1 FY21
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
Tax expense
PAT
PAT Margin (%)
Cash Profit
EPS Diluted (Rs.)
247.7
5.3
253.0
151.4
25.1
40.4
36.1
239.8
5.3
245.1
138.9
21.6
47.4
37.2
3.3%
-0.2%
3.2%
9.0%
16.5%
-14.8%
-2.8%
470.6
8.5
479.1
287.5
49.1
76.1
66.5
405.6
9.0
414.6
233.4
44.0
76.5
60.7
16.0%
-5.2%
15.6%
23.2%
11.4%
-0.5%
9.6%
14.6%
15.5%
(60) bps
14.1%
15.0%
(90) bps
0.4
8.0
13.6
14.9
4.3
10.7
4.3%
28.5
0.7
9.4
12.8
15.7
5.2
10.5
4.4%
28.5
11.73
11.54
-44.4%
-14.5%
6.3%
-5.1%
-18.5%
1.6%
230 bps
0.0%
1.6%
0.5
15.7
26.9
24.4
7.7
16.7
3.5%
51.3
1.0
19.3
25.6
16.8
5.6
11.2
2.8%
42.4
18.34
12.31
-45.9%
-18.6%
5.2%
45.4%
38.4%
48.9%
(40) bps
21.1%
49.0%
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Total Revenues
Total Revenues stood at Rs. 253.0 crore as against Rs. 245.1 crore
Reported steady revenue performance during the quarter despite a challenging environment due to the ongoing pandemic
The Company is witnessing a month-on-month improvement in revenues and anticipates the trend to continue in the upcoming quarters
EBITDA
EBITDA came in at Rs. 36.1 crore, with EBITDA Margins at 14.6%
Gross margins during the quarter were impacted owing to rising raw material prices. However, the impact on EBITDA margins was limited due to cost management
Given the current inflationary environment, the Company is undertaking price hikes to normalize margins going forward
Cash Profit After Tax
Cash PAT came in stable at Rs. 28.5 crore
Depreciation came in at Rs. 13.6 crore and finance cost stood at Rs. 8.0 crore during the quarter
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Rs. 310.8 Crore
Rs. 694.9 Crore
Rs. 648.7 Crore
Net-worth
Capital Employed
Fixed Assets (Gross)
Rs. 16.2 Crore
Rs. 367.8 Crore
93 Days
Cash & Investments
Net Debt
Net Working Capital Days
Note: As on 30th September 2021
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Q2 & H1 FY2022 Earnings Conference Call
Time
• 2:30 p.m. IST on Monday, November 08, 2021
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 7 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
Anoop Poojari / Jenny Rose
CDR India
Tel: +91 98330 90434 / 86899 72124
Email: anoop@cdr-india.com / jenny@cdr-india.com
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