X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
TCPL Packaging: Caught on the Wrong Side of Things. What's Ahead? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

Smart Money Secrets
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
  • Home
  • Outlook Arena
  • May 31, 2018 - TCPL Packaging: Caught on the Wrong Side of Things. What's Ahead?

TCPL Packaging: Caught on the Wrong Side of Things. What's Ahead?
May 31, 2018

As communicated in the last quarter, TCPL Packaging is going through a tough phase. The company continued reporting poor numbers in 4QFY18. In fact, for FY18 it reported a 37% decline in the profits.

  • For 4QFY18, sales grew by 28% YoY, on the back of volume pick up across segments. This helped the company to post a revenue growth of 14% YoY for FY18.
  • The company took a hit on the realisations which is reflected in the gross margins both on quarterly and annual basis. The gross margins for FY18 stood at 42% against 48% in FY17. However, there was slight improvement in the gross margins on a sequential basis.
  • Operating profits were down by 9% YoY for FY18 (up 4% YoY in 4QFY18) on the account of lower gross profits and increase employee cost (up 21% YoY) because of new capacities.
  • Net profits were down 37% YoY for FY18 due to lower operating profits and higher depreciation (up 21% YoY).
Standalone Financials: TCPL Packaging Limited
Standalone Financials (Rs m) 4QFY17 4QFY18 YoY FY17 FY18 YoY
Net Sales (after Excise) 1,456 1,859 0.28% 6,135 6,997 0.14%
Raw Material Cost 782 1,085 39% 3,207 4,065 27%
Gross Profits 674 774 15% 2,928 2,932 0%
Gross Margins 46% 42%   48% 42%  
Employee cost 157 182 16% 553 669 21%
Other Cost 336 403 20% 1,403 1,383 -1%
EBIDTA 182 189 4% 972 880 -9%
Margins 12% 10%   16% 13%  
Depreciation 79 89 13% 290 351 21%
Interest 61 58 -5% 219 255 16%
PBT 41 42 1% 463 275 -41%
Tax -9 1   138 69  
PAT 51 41 -19% 326 206 -37%
Margins 3% 2%   5% 3%  
To Read the Full Story, Subscribe or Sign In



DISCLOSURES UNDER SEBI (RESEARCH ANALYSTS) REGULATIONS, 2014
INTRODUCTION:
Equitymaster Agora Research Private Limited (hereinafter referred to as "Equitymaster"/"Company") was incorporated on October 25, 2007. Equitymaster is a joint venture between Quantum Information Services Private Limited (QIS) and Agora group. Equitymaster is a SEBI registered Research Analyst under the SEBI (Research Analysts) Regulations, 2014 with registration number INH000000537.

BUSINESS ACTIVITY:
An independent research initiative, Equitymaster is committed to providing honest and unbiased views, opinions and recommendations on various investment opportunities across asset classes.

DISCIPLINARY HISTORY:
There are no outstanding litigations against the Company, it subsidiaries and its Directors.

GENERAL TERMS AND CONDITIONS FOR RESEARCH REPORT:
For the terms and conditions for research reports click here.

DETAILS OF ASSOCIATES:
Details of Associates are available here.

DISCLOSURE WITH REGARDS TO OWNERSHIP AND MATERIAL CONFLICTS OF INTEREST:
  1. 'subject company' is a company on which a buy/sell/hold view or target price is given/changed in this Research Report.
  2. Equitymaster holds 1 share of TCPL Packaging Limited as per the guidelines prescribed by the Board of Directors of the Company. The investment is made for research purposes only.
  3. Equitymaster has no other financial interest in TCPL Packaging Limited.
  4. Equitymaster's Associates and Research Analyst or his/her relative doesn't have any financial interest in the subject company.
  5. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have actual/beneficial ownership of one percent or more securities of the subject company at the end of the month immediately preceding the date of publication of the research report.
  6. Neither Equitymaster, it's Associates, Research Analyst or his/her relative have any other material conflict of interest at the time of publication of the research report.
DISCLOSURE WITH REGARDS TO RECEIPT OF COMPENSATION:
  1. Neither Equitymaster nor it's Associates have received any compensation from the subject company in the past twelve months.
  2. Neither Equitymaster nor it's Associates have managed or co-managed public offering of securities for the subject company in the past twelve months.
  3. Neither Equitymaster nor it's Associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  4. Neither Equitymaster nor it's Associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past twelve months.
  5. Neither Equitymaster nor it's Associates have received any compensation or other benefits from the subject company or third party in connection with the research report.
GENERAL DISCLOSURES:
  1. The Research Analyst has not served as an officer, director or employee of the subject company.
  2. Equitymaster or the Research Analyst has not been engaged in market making activity for the subject company.
Definitions of Terms Used:
  1. Buy recommendation: This means that the subscriber could consider buying the concerned stock at current market price keeping in mind the tenure and objective of the recommendation service.
  2. Hold recommendation: This means that the subscriber could consider holding on to the shares of the company until further update and not buy more of the stock at current market price.
  3. Buy at lower price: This means that the subscriber should wait for some correction in the market price so that the stock can be bought at more attractive valuations keeping in mind the tenure and the objective of the service.
  4. Sell recommendation: This means that the subscriber could consider selling the stock at current market price keeping in mind the objective of the recommendation service.
Feedback:
If you have any feedback or query or wish to report a matter, please do not hesitate to write to us.

Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

TRACK TCP LIMITED

  • Track your investment in TCP LIMITED with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

MARKET STATS