TPL Plastech Share Price Up On Revenue Growth in FY17

TPL Plastech Had Seen A Meagre 2 Per Cent Rise

In Its Revenues In FY16 To Rs 187 Cr. This Was
Primarily Due To Falling Crude Prices Which Had
Also Dragged Down Polymer Prices.

However While Speaking With The Media,

Sanjaya Kulkarni, Chairman, TPL Plastech Stated
That He Expects Revenues To Surge By 15 Per
Cent In FY17. There Was A Soar In Demand
Which Was Coming From The Government's
Water Supply Schemes. This Was Going To Be
The Main Reason For The Rise In Sales, He Said.
Talking About Polymer Prices, Kulkarni Said That There Had Not Been Many Evident Price
Changes In The Recent Past. However, He Expects The Price Of Polymer To Rise By
Around 5 Per Cent.

PAT and EBITDA:

The Performance Of The Firm In FY16 Unlike Many Others Had Been Pretty Good
Primarily The Sales Had Gone Up, The EBITDA Grew By 16 Per Cent And The Profit After
Tax (PAT) Grew By 13 Per Cent. In FY17, They Were Looking At Sales Growth Of About
15 Per Cent But At The Same Time, They Witnessed EBITDA Growing Much More Than
That And The PAT Growing Significantly Higher As Compared To What It Had Been In The
Past. More Importantly, The Return On Capital Employed Had Also Risen Last Year And Is
Seen Increasing Again In FY17. Meanwhile, TPL Plastech Share Price Rose Over 4.5 Per
Cent Intraday On 22nd December, 2016.

Total Sales:
The Total Sales Last Year (FY16) Was Rs 187 Cr And Out Of This The Drums And The
Medium Packaging Comprised Nearly 85 Per Cent Of The Total And Pipes Is Just About 15
Per Cent Of The Sales. There Was No Export Because All These Were Bulky Products And
Export Was Not Feasible And What They Were Doing Was Essentially Selling To
Customers In A Location Of About 200 Kilometers Around The 5 Locations Where They
Had Factories.

Revenue Growth:
The FY16 Volume Growth Was About 11 Per Cent, The Revenue Growth Was Only 2 Per
Cent Primarily Due To The Prices Of Oil Products Which Went Down, So All The Polymer
Prices Fell And Therefore, Volume Growth Was 11 Per Cent But Sales Growth As Only 2
Per Cent.

Total Processing Capacity:

The Total Processing Capacity Is Expected To Increase From What Is Presently About
18,500 Tons Of Polymers That They Process To About 23,000 Tons. So Expansion Would
Be In Pipes As Well As In Drums And Also In Medium Packaging, The Company Stated.

Disclaimer
The investment advice or guidance provided by way of recommendations, reports or other ways are solely the personal views of the research
team. Users are advised to use the data for the purpose of information and rely on their own judgment while making investment decision.
Dynamic Equities Pvt. Ltd - SEBI Investment Advisory Reg. No.: INA300002022

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Article Written by
Salman Hashmi