The shares of Mumbai-based plastic products maker Time Technoplast (TTPL) touched an all-time high on the bourses on Friday, following an acquisition announcement. The company bought the plastic products division of Belgium-based Solutia Inc with a manufacturing plant in Romania and renowned brands such as ‘AstroTurf’. The company, which has a similar product range under ‘DuroSoft’ brand, will strengthen its portfolios of lifestyle and auto components through this acquisition.
This marks its fourth acquisition in two years. Last year, the company acquired composite cylinder maker Kompozit Praha in the Czech Republic. Recently, its
subsidiary NED Energy acquired majority stake in a Bangalore-based company manufacturing batteries for power and solar sectors. TTPL also acquired 90% stake in Taiwan’s largest industrial packaging company. TTPL has successfully set up a pilot project for composite LPG cylinders and produced prototype composite cylinders for the Asian market tested and approved as per European standards. TTPL’s another subsidiary, TPL Plastech, has set up a greenfield expansion for industrial packaging at Pantnagar, where the operations have commenced recently.
The company posted a healthy 24% jump in its consolidated net profit for the June 2010 quarter, thanks to a better performance by its subsidiaries. The company had 19% higher revenues with stable margins. It was the lower than proportionate growth in interest and depreciation that lifted the bottomline growth. The company has steadily improved its operating and net profit margin over the last four quarters.
With a strong and steady performance throughout last year, the company’s consolidated profit jumped 31% in the 12-month period ended June 2010 to 103.7 crore. Its current market valuation is 11.4 times the trailing twelve-month earnings, which appears attractive for long-term investors.
This marks its fourth acquisition in two years. Last year, the company acquired composite cylinder maker Kompozit Praha in the Czech Republic. Recently, its
subsidiary NED Energy acquired majority stake in a Bangalore-based company manufacturing batteries for power and solar sectors. TTPL also acquired 90% stake in Taiwan’s largest industrial packaging company. TTPL has successfully set up a pilot project for composite LPG cylinders and produced prototype composite cylinders for the Asian market tested and approved as per European standards. TTPL’s another subsidiary, TPL Plastech, has set up a greenfield expansion for industrial packaging at Pantnagar, where the operations have commenced recently.
The company posted a healthy 24% jump in its consolidated net profit for the June 2010 quarter, thanks to a better performance by its subsidiaries. The company had 19% higher revenues with stable margins. It was the lower than proportionate growth in interest and depreciation that lifted the bottomline growth. The company has steadily improved its operating and net profit margin over the last four quarters.
With a strong and steady performance throughout last year, the company’s consolidated profit jumped 31% in the 12-month period ended June 2010 to 103.7 crore. Its current market valuation is 11.4 times the trailing twelve-month earnings, which appears attractive for long-term investors.
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