TCPL Q3FY22 Results: Consolidated profit rises 39.39% YoY to Rs 13.87 crore

TCPL Q3FY22 Results: TCPL Packaging Limited (TCPL), one of India's leading producers of sustainable packaging solutions for customers across industries, today reported a 39.39 per cent YoY rise in the consolidated profit of Rs 13.87 crore for the third quarter ended December 31, 2021. It had posted a profit of Rs 9.95 crore posted in the corresponding quarter last year.

The company's consolidated revenue from operations grew 13.85 per cent YoY to Rs 276.47 crore in the reported quarter against Rs 242.82 crore posted last year. EBITDA grew 10.47 per cent YoY to Rs 41.75 crore against Rs 37.79 crore.

Mr. Saket Kanoria, Managing Director, TCPL Packaging Limited said, "We have delivered a healthy performance during the period under review despite the ongoing macro-economic and operating challenges. In 9MFY22, our topline expanded by 14.6 per cent on a year-over-year (YoY) basis and Cash Profits improved by 20.7 per cent demonstrating the resilience of our business model. While the effect of rising input prices on gross margin continues, we have been able to largely limit the impact on overall profitability by taking adequate price hikes."

He further added, "Following the successful acquisition of 60 per cent in Creative Offset Printers Private Limited (COPPL), we have further invested in the Company's Right Issue to increase our stake to 80 per cent post allotment of shares. We remain very excited about our entry into the high-potential rigid box segment to target one of the fastest-growing smartphone markets in the world. We believe we can exponentially grow COPPL over the next two years by leveraging our scale and institutional capabilities in a largely unorganised industry. Our expansion plans in the flexible division are on course to be completed soon. This combined with a revival in demand should enable us to report strong performance in the upcoming fiscal."

Key Developments

Completes acquisition of Creative Offset Printers Private Limited (COPPL)

• Completes the acquisition of a 60% stake in COPPL during the quarter.

• In addition, TCPL has invested in the Rights Issue of the Company and has been allotted 2,12,405 partly paid-up equity shares, aggregating to Rs 12 crore. Post allotment of shares, TCPL will hold 80.31 per cent in COPPL.

• Significantly strengthens TCPL's diverse portfolio with the foray into the high-potential rigid boxes space targeting the growing smartphone & electronics industry.

• With the manufacturing plants of both companies in close proximity, TCPL expects to drive various synergies including rationalization and optimization of various costs.

Update on expansion

• Second manufacturing line in the Flexible Packaging segment is on track to be operational soon. This will effectively double the segment's capacity

• On track to establish one of the world's first state-of-the-art innovative Polyethylene (PE) blown film lines at Silvassa.

• Based on eco-friendly Machine-Direction Orientation (MDO) technology, the film line is expected to drive demand for the Company's Flexible Packaging segment given growing customer preference for sustainable & recyclable solutions.