Time Technoplast provided an update on its operations following recent geopolitical events, noting a 20% increase in polymer prices over 45 days due to surging oil and gas costs. While freight charges have risen, the company confirms all manufacturing units, including those in the MENA region, are operating normally with adequate inventory. Robust risk mitigation, including 60-70 days of inventory and long-term supplier contracts, ensures business continuity and stable EBITDA maintenance.
Consolidated Performance Snapshot (9MFY26)
Time Technoplast reported consolidated revenues of approximately ₹4,433 Crore in the first nine months of FY26 (9MFY26), up from ₹3,992 Crore in the previous corresponding period (9MFY25). This revenue was split, with India contributing 64% (₹2,830 Cr) and Overseas operations contributing 36% (₹1,603 Cr). International focus remains strictly on the industrial packaging segment.
Segmental Revenue Contribution
The core Industrial Packaging segment accounted for 74% of total consolidated revenue, generating approximately ₹3,300 Cr in 9MFY26. This B2B segment maintains a geographic split of roughly ~50% India and ~50% International.
Other key segments include:
- Composite Products: Contributed ~13% of revenue (~₹555 Cr), driven by strong growth expected in CNG cylinders (~30% CAGR). All manufacturing remains in India.
- Infrastructure: Accounted for ~6% of revenue (~₹280 Cr), focusing on pipes and energy storage devices, with all operations based in India.
- Others: Accounted for the remaining 7%, manufactured entirely in India with no major changes anticipated.
Impact of Current Geopolitical Situation
Input Cost Pressures
Management highlighted significant increases in input costs over the past 45 days:
- Polymer Prices: Increased by approximately 20%, directly correlated with the surge in global oil and gas prices.
- Freight Charges: Increased due to global shipping route disruptions and limited marine insurance availability stemming from tensions in the Middle East and the Russia-Ukraine conflict.
- Foreign Exchange: Wide fluctuations in exchange rates are noted, potentially impacting overall input pricing.
Operational Stability in Key Regions
Regarding operations, particularly in the Middle East and North Africa (MENA) region, the company confirmed that all manufacturing facilities across three continents are running normally with adequate inventory. The impact on revenue or margins is expected to be negligible, as price increases resulting from higher input costs have been implemented and accepted by Industrial customers.
Risk Mitigation and Business Continuity
Time Technoplast has implemented several robust strategies to ensure long-term service continuity:
- Inventory Management: The company maintains a policy of holding inventory levels equivalent to approximately 60–70 days.
- Sourcing Mix: Raw material sourcing is balanced at a 50% import and 50% local procurement mix. Furthermore, the company sources materials locally in each country of operation to ensure supply resilience, with backup support from nearby facilities in emergencies.
- Supplier Contracts: Long-term contracts are in place with both domestic and international suppliers for the entire financial year, utilizing mutually agreed pricing formulas. The company emphasizes its long-standing relationships with suppliers (over 25 years).
- Pricing Power: Through long-standing customer relationships (some exceeding 25 years), any necessary price adjustments are passed on to maintain absolute EBITDA.
- Forex Management: A dedicated Foreign Exchange Risk Management Policy is employed. Hedging strategies are applied to manage risk related to imports, exports, and profit repatriation from overseas operations.
The management affirmed its commitment to transparent communication, assuring stakeholders that robust measures are in place to ensure business continuity and growth despite the volatile geopolitical environment.
Source: BSE
