time technoplast&rsquos time&rsquos q2fy15 consolidated results were below crisil research&rsquos expectations. revenues increased 13.7 yoy to rs 6.1 bn driven by 13 volume growth 8 india and 22 overseas. ebitda margin expanded by 20 bps yoy to 14.3, but was marginally lower than expected. further, interest cost of rs 285 mn up 16.5 yoy was high due to increase in borrowing rate as well as bank charges. pat increased 17 yoy to rs 255 mn. we expect the business momentum to continue led by further rampup of the overseas packaging business. the orders for composite cylinder have also picked up. we maintain the fundamental grade of 45.the packaging segment&rsquos revenues grew 16 yoy to rs 4.3 bn 67 of sales driven by the international business, which grew 22 and achieved utilisation level of 60 vs 50 in q2fy14. as per the management, older locations including thailand, sharjah and the uae continue to witness healthy growth. new facilities in indonesia, egypt, malaysia and vietnam saw good growth as well. however, sales in south korea and china remained weak &ndash the company plans to wind up operations in korea by end2014 and shift the machinery to indonesia which is operating at peak utilisation. we forecast sales cagr of 16 in the packaging business led by steady healthy performance of the overseas markets and moderate recovery in domestic demand in fy16.time&rsquos other business segments posted moderate performance. the lifestyle business revenues 9 of sales grew 9 yoy, the auto components business 7 grew 8 yoy and the infrastructure business 17 6 yoy. we expect these business segments to grow 711 over the next two years in line with enduser industries.we have lowered earnings estimates over the forecast period to factor in increase and financing charges &ndash fy15 and fy16 earnings have been lowered by 12 and 17, respectively. however, there is no material impact on the valuation we maintain our discounted cash flow dcfbased fair value of rs 61. this fair value implies pe multiples of 11.8x fy15e eps and 8.4x fy16e eps.disclaimer this report report has been commissioned by the companyinvestorexchange and prepared by crisil. the report is based on data publicly available or from sources considered reliable by crisil data. however, crisil does not guarantee the accuracy, adequacy or completeness of the data report and is not responsible for any errors or omissions or for the results obtained from the use of data report. opinions expressed herein are crisil&39s opinions as on the date of this report. the data report are subject to change without any prior notice. nothing in this report constitutes investment, legal, accounting or tax advice or any solicitation, whatsoever. the report is not a recommendation to buy sell or hold any securities of the company. crisil especially states that it has no financial liability, whatsoever, to the subscribers users of this report. this report is for the personal information of the authorized recipient only. this report should not be reproduced or redistributed or communicated directly or indirectly in any form to any other person or published or copied in whole or in part especially outside india, for any purpose.
