Company Fundamentals

Transcription

1 Plastic Products November 01, 2012 CMP Rs BSE Code BSE ID NATPLASTI High/Low 1Y (Rs.) 18.70/13.40 Average Volume (3M) 1,075 Market Cap (Rs. Cr.) 8 Shareholding % Sep-12 Jun-12 Promoters DIIs # FIIs # - - Public & Others Stock Chart ( Relative to Sensex) Stock Perfm.(%) 1M 6M 1Yr National Plastic Sensex Financials FY09 FY10 FY11 Revenue Y-o-Y - 3.9% 17.7% EBITDA Y-o-Y % 11.3% Net Profit Y-o-Y % 22.8% EPS (Dil.) EBITDA Margin 13.7% 14.7% 13.9% Net Profit Margin 2.4% 4.5% 4.6% P/E(x) 7.1x 3.8x 3.1x Financial year ends at March 31 on standalone basis. All figures in Rs. crore except for per share data # FIIs- Foreign Institutional Investors # DIIs- Domestic Institutional Investors *large growth figure due to low base National Plastic Technologies Limited. Company Overview National Plastic Technologies Limited (NPTL) was incorporated in 1989 in the name of Hi-Tech Plastics Pvt. Ltd. Later, it was converted to a public limited company and its name was changed to Arham Plastics Ltd. NPTL got its present name in March 2008 with its manufacturing plants located in Chennai, Pondicherry and Himachal Pradesh. The company is engaged in the manufacturing of plastic moulded furniture and engineering components for the OEMs. The product range includes components for the automotive, white goods, consumer durables and IT peripherals sectors. NPTL is a part of National Plastic Group and has an associate company called National Polyplast India Limited, which is engaged in the manufacturing of plastic injection moulded products for the beverage sector. Company Fundamentals Enhanced capacity resulted in improved revenue for FY11 The company s revenue for FY11 stood at Rs crore against Rs crore recorded during the previous year, translating into a growth of 17.7% Y-o-Y, owing to better realisation from the end products. Also, the growth in revenue is attributed to improvement in the scale of operations, leading to increased volume growth. Volatility in raw material costs, coupled with increase in employee and other administration costs had resulted in the drop of EBITDA margins from 14.7% in FY10 to 13.9% in FY11. However, net margins witnessed a marginal improvement during the year under review despite higher interest and depreciation charges. Operational Performance The company produced 82,83,180 number of plastic-moulded components during FY11 compared to the previous year s production of 70,14,802 pieces, registering an increase of 18.1% Y-o-Y. The quantity sold during the year under review stood at 82,52,039 pieces compared to 70,48,677 pieces during the previous financial year, showing an increase of 17.1% Y-o-Y. Increase in the installed capacity from 8,775 tonnes to 9,100 tonnes during FY11, coupled with higher production and sales, helped the company post a better performance. Future Plans The company is planning to make agreements with companies to manufacture and assemble electronic components in consumer electronics and IT peripherals, sub-assemblies and trims for the automotive sector. Key Strengths - High growth potential foreseen in plastic products segment, driven by growth in various end-user industries - Diversified product profile Initiative of the BSE Investors Protection Fund -1-

2 Company Business National Plastic Technologies Limited (NPTL) is engaged in the manufacturing and supply of injection moulded plastic products, which are imported from Toshiba and Mitsubishi Corporation, Japan. The product range includes components for the automotive, white goods, consumer durables and IT peripherals sectors. The manufacturing plant in Chennai and Pondicherry produce injection moulded plastic products, mainly serving the automobile and consumer durable industry, whereas the plant located in Himachal Pradesh caters to the requirements of the IT industry. The company s clientele base includes companies like Ford Motors, Hyundai Motor India, Solidaire India, Campion Plastic Industries Pvt Ltd etc. NPTL s products are classified below: Moulded Furniture: Polypropylene is used as a raw material and it is made using CAD designed and CNC machined moulds. Its product varieties include chairs, teapoys, baby chairs and stools. Industrial moulding: They are the manufacturers of customized injection molded components for various industries namely: Automotive industry - door trims, interior/exterior trims, lamp housings, engine cooling module White goods industry - washing machine parts, mixer parts, refrigerator and air-conditioner parts Electronic goods - TV cabinets, POS billing machines IT peripherals - printer castings, monitor cabinets, keyboard castings Operational Performance Particulars FY09 FY10 FY11 PMC Produced (Qty in Pcs) 1,06,49,512 70,14,802 82,83,180 growth % % 18.1% PMC sold (Qty in Pcs) 1,06,29,490 70,48,677 82,52,039 growth % % 17.1% PMC sold (Rs crore) Sales realization growth % % 1.94% Installed Capacity (Tons) 8,775 8,775 9,100 Source: Company Annual Report; PMC stands for Plastic Moulded Components About Associate Company National Polyplast India Limited (NPIL) The company commenced operations in 1975 and is engaged in the manufacturing of plastic injection moulded products for the beverage sector with its manufacturing facilities located in Chennai and Pondicherry. Its portfolio includes products such as plastic crates and PET performs of different sizes with a major focus on packaging for beverages in India. Industry Overview Plastic plays a significant role in the key sectors of the economy including agriculture, water management, automobiles, transportation, construction, telecommunication, electronics, packaging and consumer durables, besides defence and aerospace, computers and power transmissions. With the growth in these segments, the Indian plastics industry is expected to grow at a healthy double digit rate with tremendous rise in domestic consumption. The plastic industry is classified into two primary segments namely the 1) Upstream which is into manufacturing of polymers and 2) Downstream conversion of polymers into plastic products (plastic processing industry). The upstream petrochemical industries have witnessed consolidation to remain globally competitive. The phenomenal development in the petrochemical and plastic machinery sector supports the plastic processing industry. This has facilitated the plastic processors to build capacities for servicing both domestic and the overseas markets. The Indian plastic processing industry is highly fragmented and comprises over 30,000 units Initiative of the BSE Investors Protection Fund -2-

3 with most of the units operating on a small-scale basis. The downstream segment is involved in producing variety of items through injection moulding, blow moulding, extrusion and calendaring, accounting for applications like packaging, automobile, consumer durables, healthcare, etc. During , the Indian plastic industry was facing severe crunch in the domestic industry owing to demand slowdown witnessed in the automobile sector. This was mainly attributed to economic slowdown seen across the globe. Upon recovery from the downturn, the Indian plastic industry is likely to grow at about 10-12% anticipating high demand from end-user industries with plastic processing sector growing from 69,000 machines to 150,000 machines by the 2020*. Launch of new cars in the small segment is likely in the near term which in turn is expected to drive growth in the plastic processing industry (injection moulding segment). Role of plastic industry in the Indian economy Structure of Plastic Industry Particulars % CARG, Consumption of Plastic Polymers 4.7 MT 18.9 MT Employment In Plastic Industry (Direct + Indirect) 2.5 million 9.5 millions Plastic Industry's Turnover Rs. 35,000 crores Rs. 1,33,245 crores Export of Plastic 30% CARG USD 1,900 million USD 10,215 millions Contribution of Polymers and Plastic Products to the Exchequer Rs. 6,200 crores Rs. 15,990 crores Source: *Source: Competitor Analysis We have compared National Plastic Technologies Limited with its close peers in the plastic products industry. Company Year End CMP* M Cap Revenue EBIT Margin National Plastic Tech. Ltd Mar % x Prima Plastics Mar % x National Plastic Industries Ltd Mar % x Source: Company Financials, BSE & Capitaline, ICRA Online Research Market cap and Revenue in Rs. Crore, *CMP as on 01 Nov 2012 EPS P/E Initiative of the BSE Investors Protection Fund -3-

4 Summary Financials Particulars (Rs crore) FY09 FY10 FY11 Net Sales Other Op. Revenue Total Revenue Growth (%) 3.9% 17.7% Cost of Goods Sold Gross Profit Employee Costs Other Expenditure EBITDA Growth (%) 11.7% 11.3% Depreciation EBIT Profit Finance cost Other Income Exceptional Items PBT Growth (%) 49.4% 32.5% Income Tax Profit after Tax Extra Ordinary Items Net Profit Growth (%) 93.4% 22.8% Rep. Basic EPS Rep. Diluted EPS Equity Capital Face value Ratio Analysis FY09 FY10 FY11 Margins EBITDA Margin (%) 13.7% 14.7% 13.9% Net Profit Margin (%) 2.4% 4.5% 4.6% Valuation P/E (x) P/BV (x) Profitability ROCE (%) * 70.4% 64.9% 60.8% RONW (%) 15.2% 24.1% 24.2% Solvency Ratio Debt/ Equity Ratio (x) Interest Cover (x) *Bifurcation between Long Term and Short Term debt is not available for FY10 &FY11 Initiative of the BSE Investors Protection Fund -4-

5 Contact Details: ICRA Online Limited Disclaimer All information contained in this document has been obtained by ICRA Online Limited from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided 'as is' without any warranty of any kind, and ICRA Online Limited in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. All information contained herein must be construed solely as statements of opinion, and ICRA Online Limited shall not be liable for any losses incurred by users from any use of this document or its contents in any manner. Opinions expressed in this document are not the opinions of our holding company and o f the subsidiary companies and should not be construed as any indication of credit rating or grading of ICRA for any instruments that have been issued or are to be issued by any entity. Published on behalf of BSE Investors' Protection Fund BSE Investor s Protection Fund First Floor, P J Towers, Dalal Street, Mumbai. Tel: /34 Initiative of the BSE Investors Protection Fund -5-