“Time Technoplast Q2 & H1 FY25 Earnings

Conference Call”

November 12, 2024

MANAGEMENT: MR. BHARAT KUMAR VAGERIA - MANAGING

DIRECTOR, TIME TECHNOPLAST
MR. RAGHUPATHY THYAGARAJAN - WHOLE-TIME
DIRECTOR, TIME TECHNOPLAST
MR. SANDIP MODI - SENIOR VP (ACCOUNTS &
CORPORATE PLANNING), TIME TECHNOPLAST
MR. HEMANT SONI - VP (LEGAL & CORPORATE
AFFAIRS), TIME TECHNOPLAST
MODERATOR: MR. ABHIJIT MUKESH PUROHIT - KAVIRAJ
SECURITIES PRIVATE LIMITED

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November 12, 2024

Moderator: Good evening to one and all present here with us. We welcome you to the Time Technoplast Q2
& H1 FY25 Earnings Conference Call hosted by Kaviraj Private Limited.

This conference may contain forward looking statements about the company which are based on
beliefs, opinions, and expectations of the company as on the date of this call. These statements
are not the guarantee of future performances and involve risk and uncertainties that are difficult
to predict.

As a reminder, all participants’ lines will be in the listen-only mode and there will be an
opportunity for you to ask question after the presentation concludes. Should you need assistance
during the conference call, please signal an operator by pressing “*” then “0” on your touchtone
phone. Please note that this conference is being recorded.

I now hand the conference over to Mr. Abhijit Mukesh Purohit from Kaviraj Securities Private
Limited. Thank you and over to you, sir.

Abhijit Mukesh Purohit: Thank you. Good evening, ladies and gentlemen. Kaviraj Securities Private Limited welcomes
you all for Q2 H1FY25 Earnings Conference Call of Time Technoplast Limited.

Today, on the call we have with us the Management Team which is represented by Mr. Bharat
Kumar Vageria – Managing Director; Mr. Raghupathy Thyagarajan – Whole-Time Director;
Mr. Sandip Modi – Senior VP (Accounts & Corporate Planning) and Mr. Hemant Soni – VP
(Legal and Corporate Affairs).

Now without any further delays, I hand over the call to Mr. Bharat Kumar Vageria for his
“Opening Remarks” post which we will open the floor for Q&A session.

Thank you and over to you sir.

Bharat Kumar Vageria: Yes, good afternoon to all the participants and my colleagues. And thank you, Mr. Abhijit, for
the introduction to Management. It's our pleasure to convene today to present and discuss the
result for Q2 & H1 of FY2025, as well as to provide our outlook for the remainder of the fiscal
year, FY25.

We are pleased to report a continued, strengthened Q2 FY25 with a year-on-year growth of 17%
in volume and corresponding 15% in the revenue. There's a difference of 2% because of the
prices seen in the downward trend and as the company policy to transfer the prices to the
customer. This performance has been earned underpinned by robust demand in our industrial
packaging segment alongside an exceptional 36% surge in our CNG composite cascade business.
Additionally, our profit after tax for the Q2 has demonstrated an impressive year-on-year
increase of 40%. And I remember the similar increase in the Q1 also reflecting the benefit of
optimized capacity utilizations, as well as the reduction in the finance and the depreciation cost.

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The demand for Type-4 Composite Cylinders for CNG cascades remains particularly strong with
our current order book standing at approximately Rs. 185 crores. This momentum is
complemented by substantial growth in the sale of our value-added product, including
Composite Cylinders for both LPG, CNG while our core industrial packaging business continues
to perform with stability. Given these favorable trends and the solid foundations we have
established across our key businesses segments, we remain confident in our prospect for the
remainder of the year. As in the beginning itself we have said, we'll grow around 15% and thus,
we hope it will continue. In spite of, we all are aware that there were challenges quarter this year
especially because rain seasons were increased substantially. And last in the month of October
also rain was there. But looking to that, I think the remaining five months looks very good as far
as India part is concerned.

With that, I would like to turn our attention to the detailed “Financial” and “Operational”
highlights which have been communicated before in our Results:

Let us take a moment to “Review” the key takeaways together:

During Q2 FY25, I will provide you the Q2 FY24 figure also on a consolidation basis. Net sale
achieved Rs. 1,372 crores as against the previous year same period was Rs. 1,195 crores.

So, there is a revenue growth of 15%. EBITDA is increased Rs. 197 crores from Rs. 167 crores.
Profit after tax is increased to Rs. 98 crores as against Rs. 70 crores. We are just two runs away
from the century. So, we hope we should get it in the next quarter. Compared with the
corresponding quarter previous year, the net sales increased 15% and almost in India 14%,
overseas little more achievement is 16%, volume increased 16%, India overseas 18%, EBITDA
increased overall 18% and PAT increased by 40%.

On consolidation basis, normally, I have clarified in my past this conference call also, normally
in the first half we achieve 45% of our revenue, in first quarter 22% and second quarter 24%.
And balance 55% we achieve in the second and third quarter, which is 26% and around 28%.
So, during the H1 FY25, net sale stood Rs. 2,602 crores as against Rs. 2,275 crores. EBITDA
Rs. 372 crores as against Rs. 315 crores last year. Profit after tax 178 is against 127. So, in terms
of the percentage sales increased by 14%. Almost India and overseas are same. Volume is also
Indian overseas same 16%. EBITDA increased by 18%. PAT increased by 40%. H1 FY25
EBITDA margin, there is an increase in the EBITDA margins also by 40 basis point. It achieved
14.3% as against 13.9% the previous year same half, first half.

Our share of the business, yes, when we have seen the EBITDA margin improvement is there,
it means percentage of the established versus value-added products is increased. Value-added
products grew by 21% in H1 FY25 as compared to H1FY24. While established product grew by
13%, the share of the value-added product is now 27% of the total sale in FY25 as against 25%
in FY24. And I again, when talking about the value-added products, company is also taking
target of achieving 35% value-added product sales in the next 2 to 3 years' time. So, we are on
that direction only.

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Now share of the India and overseas business remain constant, continue as 65% India, 35%
overseas. And the EBITDA margin at the both India and overseas surpassed the 14% range. Net
cash from operating activities continuously increasing and company’s H1 FY25 is stood at Rs.
138 crores. Company focus on debt reduction is continue and the first half reduced by Rs. 52
crores. Total CAPEX incurred during H1 FY25 was Rs. 94 crores, which is included to be Rs.
39 crores to the regular maintenance CAPEX. Capacity expansion, re-engineering, automation,
etc., and 55 crores towards value added products, mainly composite products and the other IBC.

Now, certain major events which has occurred during this quarter, even though I have given in
earnings presentation clarification, because some of the people in between have also asked. I
thought it is better to give clarifications on the conference call. So, most of the people who are
present personally can come to know about that. And these are all the things already informed
through the NSE, BSE, stock exchanges as per the required guidelines.

Now, especially as far as the QIP concerned, as the company board has approved QIP, Qualified
Institution Placement, of up to Rs. 1,000 crores. And this is an enabling resolution. Object is
already mentioned and this resolution is valid for one-year time. Because I have received certain
questions from my investor why it is required? I am again clarifying all of you that is the enabling
resolution for the next one-year time. In spite of company has own plan to become a debt free
by March 26, but it's thought it is better prior to that then we can become the faster debt free
company. And company, the objective is also mentioned in the QIP, major object the debt
repayment, expansion plan for brownfield and new products, value added products mainly CNG,
LPG and hydrogen. I have also clarified in my last conference call further that certain Indian
government gas distribution companies need the same size of the cylinder that is 14.5 kg
cylinders which company is under development. But it is going to take time. And further, in the
present scenario, all the distributor mix of the government companies are ongoing so that the
company can also understand the market size and took the necessary action to put the capacity
in place. So, this is the advance we ourselves are keeping ready for that.

Now another company is also focusing, and we are all aware that day by day or month on month,
the main power cost especially labor cost is increasing because companies are also focusing on
the increase in the labor cost. So, the company is focusing on the automations, reengineering
modifications of the existing equipment molds, to maintain the productivity and increase the
productivity and reduce the cost in terms of the kg for the main power. And further, even though
it is mentioned that funding the organic is okay, inorganic growth in the areas of the operations,
yes, I am pleased to tell you, as on date, I don't have any acquisition plan of the company because
company has own plan, organic growth and the company's own plan, as mentioned recently.
Then working capital requirement because company is growing 15%, as we have decided, the
company should be debt free. So, additional working capital requirement, even though
companies focusing reducing the working capital cycle days which at one point of time was 120
days, which is now reduced to 100 days. So, focus is on. And first, company will achieve target
to achieve the working capital cycle days of 85 to 90 days in the next two years’ time.

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Then another thing which I have mentioned regarding the consolidation of the subsidiaries
companies, Power Build Batteries and the NED, I will just recap it for you. Company had gone
into energy storage devices manufacturing long back in 2007. Presently two companies, same
line of the products and manufacturing and two manufacturing places are there. But the company
thought it is better to use the resources, available, man power resources, marketing resources,
and to the common better efficiency and effective utilization of the resources. Company
management has approved, so that overall profitability can be improved. And the overall ROCE
from this company, where the company has made an investment of approximately Rs. 69 crores
invested by Time Technoplast as a listed company in both the companies together. So, that is
the objective for the increased margins. And another you have seen one of my subsidiary TPL
Plastech with 75% subsidiary of Time Techno, which is engaged in manufacturing of packaging
products only, IBC, drum, jerry cans, conical pails. But mainly that also includes the value added
product IBC which Time Techno is also manufacturing. But as this company is also their own
expansion plan, Time Technoplast, there's no IBC manufacturing in the Maharashtra region.
And the good demand is coming, which is already mentioned, a reason for demand in that
Konkan region. And it's a government long-term lease. I've already been allotment letter
received. So, in the next 3-4 months’ time company will plan the project cost, identify it, and
then we'll do this project. It's estimated to complete next year. And just, when I'm talking on the
subject, last year, the TPL Plastech subsidiary company has completed expansion project in
Dahej. Overwhelming response is there. Capacity utilization is already reached to the 70%. So,
looking to that overwhelming response, company thought, which is to logistic cost basis and
other cost basis to put up the plant in the Konkan region. So, this can be the first mover
advantage.

And another thing everybody would like to hear, because you know that last 8 to 10 months,
somebody was asking, all the people must be asking me, what about the overseas sales? But as
I mentioned very clearly, the company had agreed initially by way of an offer letter was received.
But that offer letter was received based on the 22 and 23 EBITDA margin. But now as the
company has achieved the growth of more than 15% growth in Middle East, further in the last
3-4 months, the company-management has decided to put their own plant in Saudi, which will
be around 100% by subsidiary of Time Technoplast Ltd. So, it is better now in uncertainty
situations to call off the sale business, because it is very clear when the company is earning more
than Rs. 350 crores-Rs. 400 crores in a year and the company was estimating this realization of
Rs. 150 crores net of the taxes for sale proceeds of the 50% stake. So, I have been advised by
my board member not to sell this business and grow company for overseas businesses which is
already evident and growth is there in the Middle East, good growth. Especially in Middle East,
I can say the Saudi is good upcoming chemical zone areas. And then Saudi government is
welcoming to expatriate, and they are giving good kind of benefits to the industry people. So,
we thought it is better to put our own unit there in Saudi. Currently, we are servicing from our
nearby countries, Bahrain and small units available in Saudi also. And this will be the 100%
ownership.

Another thing also, I have clarified my notes sale of the non-core assets which efforts are
continuing. You remember that I have told in the last October-November there is a targeted of

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Rs. 125 crores. So, we have fulfilled our promise. And almost 50% already realized around Rs.
65 crores and for the balance Rs. 60 crores efforts are on and estimating in the next 12 months’
time. These funds also will be utilized for the CAPEX plan. So, overall CAPEX if I tell you that
we have a maximum range of Rs. 200 crores and if out of that we are realizing Rs. 125 crores,
the net CAPEX will be very minimum.

Now I have covered most of the things, but if any other things I have left, I am keeping open the
floor for the questions, if any, which I have not covered. Thank you.

Moderator: Thank you. We will begin the question and answer session. The first question is from the line of
Jatin Damania from Swan Investments. Please go ahead.

Jatin Damania: Just want to understand regarding our business now when we indicated that we are not going
ahead with the sale of the UAE or the Middle East plant, how someone look at the overall growth
in the Middle East when we have decided in the past that we wanted to sell it. So, when you
compare with our past six numbers, how should one look at the fortune of the Middle East
operation? And secondly on the non-core assets, in last quarter we have tried to dispose around
Rs. 90 crores. Now we have increased it to Rs. 125 crores and as per our press release, we
indicated that Rs. 65 crores we have already achieved it or we have received it but as per the
cash flow it indicates only Rs. 30 crores which has come to the business. So, is it safe to assume
that Rs. 90-95 crores will probably come in the second half? And third, on the capacity utilization
across the product mix if you can help us to understand the future of your driver?

Bharat Kumar Vageria: You have four questions. First, you told me about the UAE business. You know that overseas,
we do manufacture the packaging product only. That is called Jerry can, IBC, and drum. Now, I
have clarified in the past also. Overseas business, if I consider 100% revenue, we normally get
30% revenue in the MENA region, which is inclusive of the four countries, that is Sharja,
Bahrain, Saudi and Egypt. I've told Middle East revenue in the terms of the rupees is 350 crores.
And the Rs. 350 crores revenue, if I will sell out, that was out of the revenue figure was around
Rs. 175 crores. So, we had agreed to sell by getting 50% or 100% valuation was $50 million and
50% valuation was $25 million which if I will take my EBITDA of 22 and 23 average, we were
selling at the time of the multiplier between 7.5 around. But as this current year is concerned 24,
we are already one quarter away from closing of this year. So, we have told very clearly we
should get the EBITDA multiplier not 22, but of 23 and 24 average. Yes, and this was agreed in
between us. And further, looking to the present growth, we have asked very simple questions
because it took eight months’ time in continuing this deal. But again, delay is, we are holding
our decision about the expansion plan of the Saudi and other expansion plans of Middle East.
So, we thought when the company is growing we should not agree because Rs. 150 crores this
company is getting, it is equivalent to, I can say, the 4 or 5 months profit of the company as a
whole organization. That is the point we considered. And I have been clearly advised by a board
member not to sell this business. You grow yourself. When the international business, we have
reviewed for next 2-3 years’ time and be sustainable, and if the good growth is coming around
15%, so there is no need for sales. That is the guidance given by my board. Accordingly, we
have conveyed this message. One thing, again I am clarifying you, as a company site, we have

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not incurred any, because if the succession-based transaction was there, so as a company, we
have not incurred any kind of the expenses for sale of this investment. This was the, whoever
agencies were there, also was very clear, if transaction goes through, then only you will get the
fee. Otherwise, everything, we are back to the home.

Now second you have asked non-core assets. I think you have heard about the March only. But
in the month of last Q3 of 24, around November or December, I have said my non-core assets
was Rs. 125 crores. By March Rs. 30 crores was already realized. The balance Rs. 90 crores is
shown in the balance sheet for the realizable value for the24-25. So, out of that Rs 90 crores,
again, we have realized around Rs 30 crores. So, it's around Rs. 60 crores is pending. And that's
also I mentioned to you. We are focusing that in the next 12 months’ time. Third, you have asked
about the capacity. The capacity utilization, as the 15% company is growing and company
management decided to do the only brownfield expansion wherever required, looking to each of
the product capacity. For example, you have seen we have a shortage of the capacity of CNG
expansion. So, definitely the expansion is going on in some kind of the IBC, need-based
expansion is doing in India and overseas put together. But I am pleased to tell you, the overall
capacity utilization, if you ask me, India and overseas put together, is around 82%. And overseas
utilization is more, 87%. And India utilization is around 80%. So, consolidation basis, it is 82%.
And that is as the company utilization increasing and the value of the product sales is increasing.
Therefore, you have seen the EBITDA is increasing on quarter-on-quarter by 20 to 30 basis
point, which is evident from the margins. So, I think I have answered all the 4.

Jatin Damania: Yes sir, thank you for the detailed answer. Just a follow up question on your first answer. When
we indicated that we are not going with the middle east, so is it fair to assume that the target
growth for the entire overseas is 15% or it is only the middle east?

Bharat Kumar Vageria: You are right. If I am getting 100% revenue from overseas, we have a 3 continents I can say.
One is the middle east where we get 30% of revenue. Around 50% revenue we get from the
Southeast Asia which covers Thailand, Malaysia, Indonesia, Vietnam, and Taiwan. And another
20% revenue we get from the USA part where we have a presence in three cities. But as company
management decided to expand further in USA, US countries growing. Now, the last two years
situation is improving. And further it will strengthen as Trump has recently taken as the President
of the USA. So, I think very aggressive. So, considering, I'm very clear from my International
Director, International President who look after this business. He is targeting to grow 15%
overseas, across the countries, everywhere. So, he can give me consolidation(24:42)growth.
India is also, we are quite confident for the 2 to 3 years' time. Because one another thing, I think
everybody's evident there. The oil prices have gone down in the range of $70 to $75, which at
one point of time, it was $85 to $90. So, it is good. When the polymer prices are down, companies
take the strength and the benefit pass on to the customers. And it gives good conversion from
metal to the polymer and composite product take place faster. That is the better advantage of
conversion and this thing. And another thing, it is seen that in the last one year or next one year
also, one or two years good new capacities of polymers are also coming. I am glad to tell you,
anybody in the processing process industry, next three years, good for the polymer processing
and composite product company, because the capacity and there is a demand gap between the

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demand and the supply. So, it means the buyers’ market, you can ask your discounts, whatever
things you want, and the faster conversion will be there.

Moderator: Thank you. The next question is from the line of Anushka Rai from Trade Brains. Please go
ahead.

Anushka Rai: Sir, I wanted to ask you about the value added product. In the presentation I read that the
company is focusing on increasing the share from its value added product in terms of revenue
and margin. So, I just wanted to understand what are the plans for expansion in the pipeline and
also I also read that in the QIP that it is mentioned that the company is going to allocate some
amount for this. So, what percentage of the QIP can be expected to be put in this segment?

Bharat Kumar Vageria: In fact, if you go to the objective of the QIP, I will tell you if the company is going to incur Rs.
100 for the expansion, I think you can consider almost 50% for value-added product, because
then only that percentage can be the higher and leads to the 35% of the total revenue. And as I
mentioned previously also, company will also do the brownfield expansion for existing products.
But the major expansion in India and overseas put together in the value-added product, as value-
added product which covered, you have seen in my earning presentation slide. What are the
products covered under the value-added products, It's clearly mentioned, value-added products
are the Composite, LPG, Oxygen, CNG, and the Mox film, and the IBC. One other product we
have not read here, but very huge potential, that is hydrogen cylinders. And that is the futures
will be in the hydrogen cylinders after the CNG. So, company is focusing on business also.
Company has already got the approval for hydrogen cylinders. And further, I'm glad to tell you,
another application is also coming up, which government is also focusing on the application of
cylinder in the drone. The government is focusing on using more drone by the agriculture use
also, and for surveillance. So, currently, what I understand, most of the drone companies, I think
20-25 companies are in India, who just is engaged in manufacturing of the drone. And as I
understand drone value, per drone value, ranging from Rs. 5,00,000 to Rs. 30,000,00. And many
agriculturists now started using for the fertilizer, seed growing, the drone they are using. And
currently they use the batteries. So, when they will use this cylinder, then they can go the fly on
the high and further they can fly the more hours, four times capacity more than the present
batteries they use it. So, the new application is coming and very soon you will hear application
for the drone application of our products. I will update as we get the final approval for this very
huge opportunity in that line of the business. Because internationally I understand it's a $40
billion business as far as drones are concerned globally. But India has a good opportunity. So,
we'll see how we'll grab that opportunity available. So, company, you are right. If I will incur
Rs. 100, 50% will go for value-added product and 50% for the brownfield expansion of the
existing because value-added product, we are estimating growth of 30% year-on-year for at least
next three years' time. And the value-added existing products, the packaging, we are considering
growth of 10% to 12%. So, combined of both is averaging around 15% growth we are projecting.

Anushka Rai: And sir I also wanted to ask you one more thing which is about your CAPEX. So, what is the
CAPEX plan for the H2 and FY26 and also what kind of growth are you expecting in terms of
volume and value in this period?

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Bharat Kumar Vageria: In fact, I can tell you the volume growth because value you have seen recently as I mentioned
the 16% volume growth and revenue growth is 14% because of the price differences, revenue.
But when we estimate our business, when I'm telling you the 15% growth, that is the volume
growth. But the volume growth is depending on the pricing of each of the product, composite
products, and the polymer prices, which is linked with the demand supply. Now, you are asking
me, CAPEX. You have seen in the last track record of the 5 or 7 years, the company was doing
expenditure in the range of around 180 crores to 200 crores. This year, including the value-added
product sales, we had projected around Rs. 180 crores to 200 crores. And in the first half, around
Rs. 95 crores incurred. And in the balance of overall estimation in the beginning of the year we
had given, it will be around Rs. 175 crores – Rs. 180 crores. And if you ask me the net CAPEX
after the reduction of the non-core assets, it will be in the range of around Rs. 125 crores to Rs.
130 crores. That already in the beginning of the year, I have given my projections. So, I think
looking to the first half, 95 Cr, maximum CAPEX in whole of the year will be in the range of
Rs. 180 crores to Rs. 200 crores. And out of that, whatever proceeds will come from the sale of
the non-core assets will be netted off from this.

Moderator: Thank you. The next question is from the line of Kush Bafna from Bafna Brothers Finance and
Property Agent. Please go ahead.

Kush Bafna: Many congratulations on your excellent performance and also continuous debt reduction. I just
had a small question sir from my side about the trade receivables which are being shown in the
book. Any estimate as to when that comes little down or this is how the company maintains in
general, business conditions?

Bharat Kumar Vageria: No, it's okay. I think it is going to be down as you know that especially normally I talk about the
when working capital days I am talking which is 100 days. So, what happened always working
capital cycle time as we know the working is the inventory days, then receivable days and the
minus the creditors. So, if I'm getting more credit, I'll give more credit to the debtors. But always
one principle is very clear over company. If anybody would like to have more credit more than
30 days’ time, I'll have to simply add 1% cost of the credit to them. And that is the advantage to
the company, because if I'm paying cost of the funding around 9%. So, if I'm taking 12%, so it
is benefit to the company. But at the same time, normally average receivables you have seen 73
days. It's the combination of the various products. With some products, we give the credit of 60
days. Some products, we give the 90 days. But maximum credit, we give 90 days. For some of
the products, which the industry itself is giving, I have also to follow the industrial norms. But
certain products, we give 45 days’ credit. So, it's the average working out around 73 days. But
if maximum, whatever efforts we'll do, we can go down to 70 days, not less than that, in the
combination of that. Because in our nature of the product, we sell that we supply the products,
then our customer consider the credit period after receiving the material at their site for
acceptance by their site. Because if you take this especially, for example, PE pipe product, we
supply the material, customer received after 10 days, then it will be received from their site.
Then further from their site, they receive, their inform to their head office. And then their head
office will consider the days. If I am giving the credit of 40 days the actual credit period will be
60 days. So, I'm considering 15 days is acceptance and the transit period in receipt of the

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consignments. So, if we do best efforts, it cannot go less than 70 days. I have to consider. But
yes, what we can do, as we are keeping our target of 90 days periods, what we can balance out,
we can reduce the inventory level by 5 to 7 days further. And that efforts are continued because
in the current scenario, our certain products, which we are depending on the imports, but yes,
we are developing. We have certain understanding with the local manufacturers to develop this
product in the next two years' time. I don't want to mention the name of the polymer
manufacturer because they are the large company and the confidentiality agreement signed
between us to develop that product based on the government also like Make in India. But I'm
sure in the two years' time, this working capital cycle time 90 days based on the inventory level
go down from 70 to 60, debtor from 73 to 70, and the creditors to increase to 50 days. That's
where we will be able to maintain 90 days’ time. There is still availability of 10 days to improve
working business cycle time.

Moderator: Thank you. The next question is from the line of Priyank Parekh from Abakkus Asset Managers
LLP. Please go ahead.

Priyank Parekh: Sir, my question is more of a clarificatory in the nature, so, I think we have the CNG cascades
capacity of 480 cascades per annum. Is it right sir?

Bharat Kumar Vageria: Yes, you are right. About the cylinder, you can say 30,000 cylinder.

Priyank Parekh: Currently, in this quarter, if I say we have manufactured 135 cascades in terms of volume and if
I just do 135 x 4, it will give me a number around 540. So, I just wanted to understand when we
have capacity of 480 cascades per annum, why this excess production? So, what is my gap in
understanding?

Bharat Kumar Vageria: You see that in the first half, how much sales was there? In the first quarter, it was 95 cascades.
Second quarter 135. You put both put together is how much? 230. So, number of the cascades I
tell you the cascades is the two types of the cascades because number of the cascades have been
mentioned it is not relating to 60 cylinder cascades because certain cascades size where we use
the 40 cylinder, certain cascades where we use the 60 cylinder depending the capacity of the
each cylinder. So, number of the cascades does not multiply directly. The number of the cascades
if I will sell the mini cascade and that 60-passenger bus and mini bus and the big bus is the
difference. You just don’t see the number of the cascades you see the revenue part. So, in terms
of the revenue, you can work out very well the maximum revenue from 480 cascades, if 90%
utilization considering the holidays, the revenue can be of around Rs. 350 crores revenue can be
generated from CNG business whether I sell mini cascades or I sell the large, big cascades. But
yes, as the expansion, if you attended my last call and Sunil Bhai and your Aman know very
well that the capacity of 600 cylinder around FY26 is coming in the Q4, it is complete. So, next
year definitely the projections will be the higher.

Priyank Parekh: And that FY26 is coming on which time period you see it?

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Bharat Kumar Vageria: I think Q4 it is coming already. My trial and test is going. It is delayed by 6 months. I mention
in my last call also, it is delayed because of the elections, because of the Russia-Ukraine war
because of the Red Sea problems, European problems, multiple problems were there. It is
otherwise the project would be on the stream line by this time, but it is delayed by almost 4 to 5
months.

Moderator: Thank you. The next question is from the line of Dolly Choudhary from Niveshaay. Please go
ahead.

Dolly Choudhary: I had two questions. So, first of all, in our presentation, we have mentioned that in CNG cylinders
our per year opportunity size is approximately Rs. 2,200 crores. And I believe in our, this year
we can go around Rs. 350 crores to Rs. 400 crores, so I wanted to understand as we are the only
player, how's the remaining demand is being fulfilled?

Bharat Kumar Vageria: No, no, I'm telling you, every customer gives us some delivery schedule timing, in fact. You
know that, if you go through my presentations, large business potential is there as far as CNG
cylinder is concerned. If you have gone through the policy of 2020, that as far as composite
product, CNG business, potential is Rs. 28,000 crores for the different application with CNG
cascades, mobile refilling units, compressed biogas plants. You must have seen today, Economic
Times, which is reliance has declared Rs. 65,000 crore investment in compressed biogas plant
in Andhra Pradesh. So, that is also where the cylinder can be used. CNG for Intra-City Bus. But
what we are projecting, it's a 8-year policy. So, we are projecting the composite business,
cylinder business, can be of Rs. 2,200 crores yearly business it is possible in the next three years’
time, looking at the policy of this government. So, in that direction, only we are working. So,
we are also targeting, in the next five years’ time, this composite product, which is currently Rs.
350 crores can be reached to over Rs. 2,000 crores in the 5 years’ time and around Rs. 1,500
crores in the next 3 years’ time, we are also projecting in this business. In this business, we have
not used the existing cascades, which is metal cascades, because CNG cylinders are available
for more than 30 years in India. This policy is for the new stations. You know that Indian
government has allocated in 29 district, 8,000 new stations are under construction and allotment
have been given to various gas distribution companies, which include government and private
gas distribution companies. Very good potential, CNG, and later on future also, it will go on the
hydrogen also.

Dolly Choudhary: And next question I had regarding the value added products and the development that we have
presented. So, I wanted to understand what can be the, like where are we on this composite fire
extinguisher and the hydrogen cylinder? Like what is the update on that and what can be the
opportunity size for it going forward?

Bharat Kumar Vageria: In fact, in value terms, opportunity is very huge. We have not yet summarized that all. You know
that first thing is the composite fire extinguisher. Current fire extinguishers, you know that metal,
everybody has a compulsory. Even now, I have seen many societies are keeping, many
government authorities have to keep, every industry has to keep it. But it is just formalities,
because everywhere you will see the fire extinguishers made from the metal, which is very heavy

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and it is not very usable friendly. Light fire extinguisher, I tell you, the fire extinguisher which
we are developing the weight will be 20% of the existing weight of the cylinder. Yes, the price
will be higher. But you know that in India, people are willing to price, subject to the item can be
used. You must have seen today nowadays, the buyers of the Apple phone are more than the
other Samsung phone. Similarly, you see the prices are higher, but people are more buyer. So,
these items which we are developing is a very high-value items, but yes, it's usable. And it has
an advantage. There is my colleague Director, Mr. Raghupathy, who will explain more about
the fire extinguisher.

Raghupathy Thyagarajan: See, as Bharat was also explaining, typically the fire extinguishers are made of metal, and they
are normally installed at a place and very rarely in use. Though the cylinder is, extinguishers are
not used, they undergo a lot of corrosion and deterioration on the cylinder. And when the need
comes in, you have to ensure that these cylinders are actually in working condition. On many,
many places, they may observe that the cylinders are non-functional and they don't even work
because of the fact they continue to corrode. The advantage of the composite cylinders would
be that they will not rust or corrode, and that's a big advantage that we'll have. In some of the
new trains that have been rolled out by the Government of India, such as the Vande Bharat, etc.,
if you go through the documents there, in the tender documents, they have mandated the use of
composite fire extinguishers in those new age trains. So, it's a clear acknowledgement as well of
the technology that is available and we are moving in that direction. The demand is enormous,
there is no doubt about it. Likewise, hydrogen, I would put it, the story is very well validated
and most of the geographies, most of the countries, any geography, they are all proceeding on
this. We are also in a position to see there are enough initiatives being taken both by the
government as well as by the private sectors to venture into hydrogen, multiple hydrogen
generating plants have already put in place. So, there is a lot of interest that is being generated
in the high pressure cylinders that are being manufactured by us. So, we are very hopeful that
you know all these new initiatives in this new technology items are going to be a good
opportunity for the company to grow.

Dolly Choudhary: Just a follow up question, I want to know if there are other players also in India who are working
on this composite fire extinguisher. If it's compulsory in Vande Bharat, maybe there must be
other players also who are working on this?

Raghupathy Thyagarajan: Yes, there would be some initiative that will be taken. I mean, since we have taken the lead, we
are there much ahead of the others. So, in any industry, you will have some people or the other
who will follow us. There is no doubt about it.

Bharat Kumar Vageria: But one thing why we are going under this development, because we are already working on the
composite products since last four years. So, one experience what we have. You know that in
composite product, initially we started from the LPG cylinder. Then we expanded to the CNG
cylinder. Then we have expanded to the oxygen. Now we expanded to hydrogen. So, at least
somebody has to pass on the basics, whichever there is, took time in the five years. So, always
you know the first-mover advantage and the experience and R&D which we have.

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Moderator: Thank you. The next question is from the line of Heet Vora from Guardian Capital Partners.
Please go ahead.

Heet Vora: I had one question on the CNG composite cylinder. So, in the AR, we have written that we've
already gotten an approval from Tata Motors while I know that we are going to look at
Automated applications only once the new capacity comes in. But any sort of RFQs that we've
received from maybe Tata motors for the CNG cylinders?

Bharat Kumar Vageria: I'll just clarify you. Today, we have an approval for automobile industry for the size of 60 liters.
For the gas industry, 156 liters. Now, as I mentioned, I think if you attended my last call, we
have capacity limitations because currently whatever we are producing we are selling as a
complete cascades where we use the CNG cylinder and selling then the cascades to the gas
distribution company. Now, definitely, because you know the automotive industry, already we
have approval. And currently, automotive industry is using the cylinders which is made from the
metal only. So, we have started working with them. We know that it's an 8 to 12 months project
when working with the automotive line. So, already my team have started working with them,
getting the drawings, do the development because every vehicle's capacity is different. Then we
need to do the development of the tool for each and every model and each and every
manufacturer. So, our team has started talking with them. And when expansion will come in the
Q4 of this FY25, thereafter, we will take each of the OEM and supply them. Approval we have
already. Approval-wise, there is no problem. We have a current limitation and instead of selling
the only cylinder to them, better to use the value-added product and sell as a cascades to the gas
distribution company. There is a priority on that.

Heet Vora: Sir, actually my question was, have the plant audit been done by these OEMs?

Bharat Kumar Vageria: Of course OEM, we are the Category-1 supplier. We are having a green channel with all OEMs
because certain OEM products we have done, for example, Tata. We are already working diesel
fuel tanks. We have worked out. And we are supplying from my Pantnagar factory. You know
that Tata Magic and that vehicle, they are using that fuel tank of the gas, this diesel fuel tank.
We are supplying. For composite product, air-receiver tank, we have worked for 30 liters with
them. Now 20 liters under development. Certain composite products which are not of the
commodity nature, especially we have a relationship with Tata, Ashok Leyland. So, we do some
of the automatic components, which are not of the commodity, specific customized product, we
already deal with them. So, in fact, people have started talking with them. We are in process of
getting their design, drawing approvals, then we will do the development, submit them, then the
PESO approval will be required. And when you go in automotive industry, then Automotive
Research Institute, which is in Pune, their approval will also be required. So, we'll do the right
time so that all get the approvals, and we will introduce that in the automotive industries also.
But there are many other things, many composite products. By using the same line, we can work
out for the automotive industry.

Moderator: Thank you. The next question is from the line of Devam from Adrigo. Please go ahead.

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Devam: Sir, firstly, we have seen typically in the past that there is a propensity that we have higher
revenues in H2. So, can we expect that based on the way our current business, order books and
everything is placed, that H2 should be higher revenue than H1 for us, given the client mix and
their programs and everything?

Bharat Kumar Vageria: It's always happen. As I mentioned you, in Q1 we get business of 22%, Q2 24%, both put
together 45%-46%. So, it's the first up, you will see 45%; in last 10 years progress, you can see
that. And the second up, always we get 55%. Then again in Q3 26%, and Q4 28%. It's a trend of
the industry. Last Q4, always turnover is high. You see the last Q4 turnover, Q3, it is easily
comparable.

Devam: Sure, sir, a couple of questions on the expansions. One is TPL Plastech, we have announced an
expansion. So, what kind of total CAPEX and asset terms do we expect over there? And also at
the overall, that is at the Time Techno overall total CAPEX, how much do we expect for entire
FY25 and 26? And in general, what are the guiding rules that you would consider for an
expansion in terms of asset turns and margins to consider it in a particular product or technology
type?

Bharat Kumar Vageria: You are right, I think you've right question. As far as you asked me, the overall CAPEX as a
consolidation basis, India, overseas put together is in the range of Rs. 160 crores to Rs. 180
crores, maximum Rs. 200 crores. Now out of the Rs. 200 crores also you will see around Rs. 70
crores to Rs. 80 crores on account of the maintenance CAPEX automation re-engineering to
maintain the capacity and to maintain the capacity and the tool developments. Balance Rs. 120
crores expansion where we will edit the capacity in value added products or the existing product
capacity. Now, specifically, this year I mentioned, out of Rs. 180 crores to Rs. 90 crores, we
have already non-core assets sale business will be there. So, net of that, the CAPEX will be
hardly Rs. 140 crores to Rs. 150 crores. Then 25-26 yes, the same in the range of Rs. 150 crores
to Rs. 180 crores, considering the expansion line in India and overseas. And somebody has asked
me just in this call itself, how you distribute, I'm very clear. In our business, value added product,
when we invest Rs. 1 we get more than three times of our revenue. But when we do the
investment in the other existing product line, brownfield expansion, normally we see the three
times of the revenue we should get it in the value added product. And the other products we get
in the range of 2 to 2.5 times. But we have seen, whenever we do the automation re-engineering
product, we consider the payback period and payback period should be less than four years
whether by way of a reduction in the power cost, reducing the labor cost, etc., So, many other
areas also I am working. I would like to tell you we are working on power cost reductions also.
As you know that the government is also focusing on the use of the solar power. Just a bulk
figure, which I remember I would like to tell you. In a year in India, we used 15 crores units of
the power. So, you know that certain government's policies come out in Karnataka, Tamil Nadu,
Maharashtra, Gujarat. You can buy up to 75% to 80% of your power requirement from the solar
manufacturing companies. So, already, we have already signed an agreement. We have done the
equity investment. And we are going to save almost Rs. 3 a unit. So, if I just remember, around
Rs. 4 crore units which we have a requirement in Gujarat, Maharashtra, Tamil Nadu, and
Karnataka we have signed. So, the company will be able to save next year at least Rs. 12 crores

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on account of the power, power cost itself. Because otherwise, my power cost itself is more than
Rs. 110 crores something we are paying annually. Now, the similar policy we are expecting in
the other states also, like in Telangana, in Uttarakhand, in Himachal, everywhere we are
expecting, because one, our team is completely following the government Ministry Department
and other local departments, wherever policy is coming, immediately we are tying up and try to
save these costs because the major cost as far as power is concerned. In our business, two other
major costs other than the raw material, is the power and the main power. So, we work hard on
that how we can reduce these costs by increasing the productivity and by increasing doing the
automations, so we will be able to get the more productivity and increase the percentage and
offer our products competitive pricing to the customer. That is the main objective of the company

Participant: I had also asked regarding the TPL Plastech expansion and what kind of expansion?

Bharat Kumar Vageria: TPL Plastech is just expansion in the Konkan region because Time Technoplast does not
manufacture IBC in the Maharashtra Konkan region. Currently, their customers are servicing
from the Union Territory area, Daman and Silvassa, and Dahej area. So, too much logistic cost
is involved. But especially in this Konkan area, too much chemical bond is coming up in
Maharashtra government and many new units are coming up that region, which is already
mentioned in note, you must have seen, see the solar, PV chemicals, fruit, juice industry,
semiconductor, many new units are coming and because of the near to the Nhava Sheva port and
the reason chemical zone is coming up. So, TPL Plastech exact investment will be worked out
but roughly I can say it will be in value around Rs. 20 crores to Rs. 25 crores including the cost
of the land and buildings and equipment and so that if company will do Rs. 25 crore investment
then definitely it can generate the revenue of around Rs. 75 crores to Rs. 80 crores.

Participant: And this would be falling in the category of value-added products only, right?

Bharat Kumar Vageria: Value-added products, yes.

Participant: And sir, a couple of bookkeeping questions. One is your depreciation is lower. What would be
the main reason? Would this be related to the non-core asset disposal or why would the
depreciation year-on-year be lower from Rs. 46 crores to Rs. 42 crores?

Bharat Kumar Vageria: No. Depreciation is in the range of Rs. 150 crores to Rs. 160 crores and again, it is lower because
certain assets which is already depreciated we are 94 company, for almost 30 years have gone,
many assets already written off, no need to again write off that depreciation. That may be the
difference.

Participant: Okay, I mean because there was a sharp year-on-year drop of almost 10%.

Bharat Kumar Vageria: Yes, because you know that 25 years company some essence already know You know we
considered the life of the building, 25 years, life of the plant and machinery is 20 years, life of
the mold and machine, life of the molds and tools 10 years So, definitely it is going to be reducing
the system.

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Participant: Fair enough and finally sir what will be the current borrowing rates for debt for us and
incremental debt, how much would we be borrowing it?

Bharat Kumar Vageria: I can provide you the range because the company is rated and a AA rated company. And so the
rate of their interest is in the range of we are considering, if you ask me the range, 8.25% to 9%
is the range we are keeping ourselves in India. And similarly in overseas it is in the range of 6%
to 7%.

Moderator: Thank you. The last question is from the line of Ankur Savariya, an individual investor. Please
go ahead.

Ankur Savariya: Last 1-2 years the market has supported you very well.

Bharat Kumar Vageria: That is right. All we can do is do our work. Don’t expect anything in return. I believe in that.

Ankur Savariya: We are trying to sell off this business, now the company policy has changed and now we are not
looking forward to selling any business overseas or we are still looking into it?

Bharat Kumar Vageria: No, if I tell you the truth, I will immediately say that I have no interest in anyone. Because when
I have my own plan of debt free, my own expansion plan, today I am putting two new units in
America, I am putting two units in the middle east, and I am doing over 15% growth of the
company, even in this much market uncertainty, I don't need anything. I am not short of financial
resource or man power resources. All are available.

Ankur Savariya: So, our revenue target for the next two years, for financial year 26 will be somewhere about Rs.
6,000 crores in that case.

Bharat Kumar Vageria: If you calculate the turnover of Rs. 5000 crores, 15% growth is 30% growth, 30% 5,000 crores
growth is 6,500 crores. Arithmetic calculation.

Ankur Savariya: Any update on the LPG orders because last time because last time it was only enhanced for one
month because of the elections. Any enhancement news after that?

Bharat Kumar Vageria: No boss, our product is not linked to the elections. We are not depending on the elections. We
have no direct business with the government. And the gas distribution companies, LPG they
have a regular business. They don't have anything to do with elections. For example, if IOCL,
BPCL, or HPCL they want to buy cylinder, they can't restrict them from tender. It's their business
operations. So, it doesn't make any difference from elections.

Ankur Savariya: Last time, if I recollect correctly, our LPG order, after it got finished, there was a slight
enhancement.

Bharat Kumar Vageria: I have also updated you in the last quarter that we will continue the 10 kg cylinder but the large
volume means 50 lakhs, 60 lakhs cylinder order they have asked us to develop a cylinder of 14.5
kg. I mean, we and Supreme are involved together we are developing a cylinder of 14.5 kg now

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they will develop the tool, the drawing design has been submitted, this is not done immediate, it
is a six-month project. The drawing, design will be approved. We'll make the product, submit it,
and get the money approved. But during that intervening period, the 10-kilogram project will
continue. Secondly, I am glad to tell you that along with IOCL, IOCL has given us permission
since March to do distributor meet. All their distributors will go to cities to meet distributors and
create awareness. So, already, as of today, it's been done in 14 cities. HPCL, BPCL has also
allowed they have to give permission because we are meeting their customers and dealers. And
we are creating awareness for their dealers and distributors in this city so that in future demand
can be created. So, this awareness happened. On the contrary, we got six months’ time. time. In
those six months, all over India, basis of HPCL, BPCL, IOCL distributors will be met and
awareness will be created about what are the advantages of Cylinder, because normally, what do
people think? And this is a plastic cylinder and a metal cylinder. But the plastic cylinder is light,
it is explosion proof, it has light weight, it has easy gas visibility. To explain all this, if we explain
to the distributor, then the distributor will tell the dealer, the dealer will tellthe consumer, then it
will be used in mass media. Then it will be used slowly slowly .

Ankur Savariya: Any update on orders of oxygen cylinder?

Bharat Kumar Vageria: Oxygen cylinder, yes, we have order. We were not executing it because we didn't have a line.
But we have executed something in this quarter. Already I had orders of 5000 oxygen cylinders.
But supply is running. And as I said a while ago, we are going to get cylinder approval for Type-
3 drone application on this line which is a very, very huge market. But the hydrogen cylinder is
Type-3. You will get news very soon about its approval. And we are going to supply for drone
applications also. It’s all new, it is like that we are looking out, we are in composite product. In
composite product, there is LPG, CNG, hydrogen, drone applications, air receiver tank, and in
the automotive sector, there is more. Like there is fireextinguisher. We will use our knowledge
of the composite product manufacturing and explore the possibilities in the industries where
these items can be used.

Ankur Savariya: Absolutely. It is very useful for a lot of high-rise buildings as well.

Bharat Kumar Vageria: The point is straight. Where the iron needed is100 kg in an item, if the composite product works
in 40 kg, then the weight reduces by 60%. The weight reduces by 60 percent, which increases
the efficiency of the item. It becomes easy in handling.

Moderator: Thank you. As there are no further questions, I would now like to hand the conference over to
the management for closing comments.

Bharat Kumar Vageria: Yes, thank you very much, all valued existing and prospective investors to listen peacefully and
I tried my best to provide you clarification. If any person later on comes, any query, clarification,
they ask, we have an Investor Relationship Agency that is, Orient Capital is there. We have
provided number of the company Investor Relationship Manager, Mr. Himanshu, number is also
mentioned. In addition to that, you can ask Mr. Purohit at Kaviraj Securities, they are also aware

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about the updating time-to-time who are arranging this conference call. So, thank you once again
to all the participants. Thank you.

Moderator: Thank you. On behalf of Kaviraj Securities Private Limited, that concludes this conference.
Thank you for joining us and you may now disconnect your lines.

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