Time Technoplast in limelight
Time Technoplast is in the limelight currently; rising almost 2.5% to an intraday high at Rs.87.95 while its 52-week stands at Rs.125.90 and 20% UC for the day at Rs.102.80.
The company announced yesterday that it has received its single largest order from Maharashtra Natural Gas (A JV between GAIL (India) and BPCL).
This is for supply of CNG Cascades made from Type - IV Composite Cylinders, for a total value of Rs.134 crore and to be supplied within one year period.
Buyer reserves the right to place a repeat order within six months of up to 50% of present purchase order value on the same terms and conditions (including rates).
And to meet the growing demand, the company is undertaking an expansion too from current manufacturing capacity of 180 CNG Cascades (10,800 cylinders) annually.
In order to meet growing demand for Type - IV Composite Cylinders for CNG Cascades, it is undertaking capex in a phased manner:
Phase - I (FY 2022-23) The company is increasing the manufacturing capacity by 300 cascades (18,000 cylinde) in FY 2023 with a capital outlay of Rs.55 crore. With the above expansion, the total cascade manufacturing capacity will increase from 180 to 480 cascades (28,800 cylinders) by March 2023.
Phase - II (FY 2023-24) Under Phase-II, to increase the capacity by further 600 cascades (36,000 cylinders) and the same will be completed in Q4 FY 2024 with an outflow of Rs.125 crore.
Total cascade manufacturing capacity after completion of Phase-II will be 1,080 cascades (64,800 cylinders) per year from March 2024.