There has been a slight delay in commencement of production at the Mysuru plant from December end to Mid January. As of now supplies to Asian Paints are being met from the Hyderabad plant. The Vizag plant will go on stream by end of February. Hence both plants will begin to contribute to production March onwards. The company expects to clock in...

There has been a slight delay in commencement of production at the Mysuru plant from December end to Mid January. As of now supplies to Asian Paints are being met from the Hyderabad plant. The Vizag plant will go on stream by end of February. Hence both plants will begin to contribute to production March onwards. The company expects to clock in...

Mold-Tek Packaging Ltds (MPL) Q2FY19 net revenue grew by 27.5% YoY in Q2FY19, driven by healthy volume growth of 19%. However, growth in EBITDA was relatively lower at 18.9% YoY, while EBITDA margins declined by 120bps YoY at 16.5%, impacted by input cost inflation.

Mold-Tek Packaging (MTPL) in Q2FY19 posted consolidated revenues of Rs. 100 Cr. (28% YoY, 2%QoQ) aided by 19%/9% volume/pricing led growth.

Mold Tek Packaging Lower gross margins & higher interest cost impacts profitability Mold Tek Packaging (MTEP) reported Q2 results, slightly below expectations. Cons. net sales grew by 27.1% YoY but were marginally lower sequentially to Rs 1,005m. Q2 is a seasonally weak quarter (Q1 and Q4 being stronger). EBITDA grew 19.1% YoY to Rs 166m but was down QoQ by 6.9% to Rs 166m primarily due to 240 bps contraction in gross margins as well as increase in employee costs by 23% YoY. EBITDAM were down...

Mold-Tek Packaging (MTPL) in Q1FY19 posted consolidated revenues of Rs. 102 Cr. (up 16%/8%; YoY/QoQ basis) due to value growth led by a favourable product mix change in favour of high margin F&F; segment. EBITDA during the quarter stood at Rs. 18 Cr up 13%/8% on a YoY/QoQ basis respectively.

We initiate coverage on Mold-tek packaging Ltd. (MPL) with a BUY rating and price target of Rs 377 based on PE of 22x at FY20E EPS of Rs 17.1. We believe 1) leadership in IML manufacturing 2) complete in-house backward integrated operations 3) foray in high margin Food and FMCG segment 4) capacity expansion would be key growth catalysts for MPL. We expect MPL to clock Net Sales/EBITDA/PAT CAGR of...

We recently interacted with the management of Mold-Tek Packaging (MTEP) at the investor conference hosted by us. Overall, the discussion was based on growth outlook, capacity expansion plan, new product launches and update on its RAK facility. Following are the key takeaways from the discussion: Robust growth expectations from India business: The management reiterated its guidance of 15% volume growth for FY19 and more than 20% for the next couple of years in respect of India business. Over the next five to seven years, MTEP aims to achieve Rs10,000mn in revenues led by strong growth across segments. Both the new dedicated facilities for Asian...

MTPL Q1FY19 PAT was in-line with estimates, but EBITDA was above estimates, due to higher realisation. Despite the increase in raw materials costs, margin during the quarter remained flat QoQ, backed by higher IML sales and higher realisation. MTPL is on its way of sustainable growth story, backed by capacity addition at Mysuru, Vizag, greenfield plant at Hyderabad...

Mold Tek Packaging reported good set of numbers. Revenues grew by 13.8%YoY and 8.2% QoQ to Rs 1,023m on back of volume growth of 14.0% YoY and 5.5% QoQ to 5,472 tons. EBITDA grew by 12.7% YoY and 8.1% QoQ to Rs 178m. EBITDA per kg improved by 1.6% YoY & 2.9% QoQ to Rs 34.0/kg. EBITDAM at 17.4%, contracted by ~20bps YoY (due to lower gross margins) and remained flat QoQ. Adj. PAT stood at Rs 82m versus Rs 71m in Q1FY18 and Rs 68m in Q4FY18. We expected MTPL to grow revenues and profits by 21.8% and 33.1% CAGR respectively. Margins are expected to improve as RAK plant achieves break even and...

Mold-Tek Packaging's (MTEP) performance in 1QFY19 was broadly in line with our expectations. Revenues grew 15% YoY led by volume growth of 12%. Volume growth was mainly driven by Food and FMCG (F&F;) and Lubricant divisions whereas Paint division recovered during the quarter after quite a few quarters of volume decline. Operating earnings grew 11% YoY. The share of IML in volume terms stood at 62% for the quarter as against 54% during the same quarter last year. The same in value terms was 57% vs. 50% in 1QFY18. The management has given guidance of 15% volume growth in FY19 and more than 20% in the next two years. We believe this is achievable considering the strong growth in F&F; division and expansion plan of the company in...

Mold-Tek Packaging or MTEP's operating performance in 4QFY18 was broadly in line with our expectations. During the quarter, net revenues and EBITDA grew 17% and 22% YoY, respectively. The management sounded optimistic about the growth outlook and has given volume guidance of 15%-18% for FY19 and above 20% for FY20 once the two new plants go on stream. Robust growth in Food and FMCG (F&F;) segment continued to drive both top-line and profitability of the company. Revenue share of F&F; has risen from 6% in FY17 to close to 19% in FY18. New launches in the F&F; segment like generic containers for ice-cream, candies, ghee and edible oil containers are getting an encouraging response. The...

Mold-Tek Packaging's Consolidated Revenue and Net profit increased at 3.4% and 8.4% respectively on yoy basis. The company reported subdued quarter due to lacklustre demand mainly from paint and lubricant segments on account of GST transition. However, revenue from Food and FMCG segment remained strong with addition of new products and clients.

Slow Recovery Post GST Rollout; Focus on Food & FMCGOn Track Mold-Tek Packaging or MPL's net sales in 2QFY18 grew 1.4% to Rs770mn (our estimate Rs873mn). Lower sales were account of the decline in volume by 4.5% to 4,420tn. Gross profit grew 5% to Rs315mn (our estimate Rs353mn). Gross margin expanded 150bps to 41% (our estimate 40.4%). Gross margin improved on account of a better product mix. Food & FMCG (F&F;) segment accounted for ~15% of total sales versus 5% in the same quarter last year. F&F; is a high-margin business segment. EBITDA grew 14% to Rs145mn (our estimate Rs157mn) with operating margin of 18.9% (our estimate 18%)....

Mold-Tek Packaging (MTPL) in 1QFY18 posted consolidated revenues of Rs. 90 Cr. (up 8% Y-o-Y, up 9% Q-o-Q)due to increased contribution from Food and FMCG segment and huge growth in RAK plant sales however GST impacted paints and lubes volumes due to destocking.

Improved Profitability & Healthy Traction In Food & FMCG Segment Mold-Tek Packaging's (MPL) net sales in 1QFY18 grew 6% to Rs884mn (our estimate Rs995mn) despite decline in volume by 6% on account of Goods and Services Tax or GST implementation. Volume for the quarter stood at 4,900mt. Gross profit was at Rs367mn (our estimate Rs403mn). Gross margin expanded by 250bps to 41.5% (our estimate 40.5%). The improved margin was on account of better contribution from Food and FMCG or F&F; segment. Sales from F&F; segment increased to 15% of total sales versus 4.4% in the same quarter a year ago. EBITDA grew 11% to Rs163mn (our...

Mold-Tek Packaging's Revenue and Net profit increased by 10.4% and 1.2% respectively on YoY basis. The company reported a sub-par quarter due to subdued demand mainly from paint and lubricant segments on account of GST transition.

We had a meeting with Mr. J Laxman Rao, chairman and managing director of Mold-Tek Packaging (MPL) recently to understand its current business prospects. Following are the key takeaways: Rising contribution from in-mould labeling (IML) to continue: MPL is the first company to bring IML technology for labeling in India. It is the only packaging company with integrated facilities for manufacturing moulds, in-mould labels and robots. As of today, the company has ~48 robots. Contribution from IML increased from 0% in 2012 to 49% of total sales by the end of FY17. The management expects contribution from IML to...