TCPL Packaging Ltd is one of India's largest manufacturers of printed folding cartons. The document provides a financial analysis and results update for TCPL for Q4 FY15. Key highlights include: - In Q4 FY15, net sales grew 18.73% YoY to Rs. 1289.61 million and net profit jumped 104.53% YoY to Rs. 86.76 million. - Operating profit rose 19.11% YoY to Rs. 211.56 million in Q4 FY15. - EPS for Q4 FY15 was Rs. 9.97, up from Rs. 4.88 in the same period last year. -

1. CMP 480.00
Target Price 555.00
ISIN: INE822C01015
JUNE 25th
, 2015
TCPL PACKAGING LIMITED
Result Update (PARENT BASIS): Q4 FY15
BUYBUYBUYBUY
Index Details
Stock Data
Sector Paper & Paper Products
BSE Code 523301
Face Value 10.00
52wk. High / Low (Rs.) 535.00/113.00
Volume (2wk. Avg. Q.) 3307
Market Cap (Rs. in mn.) 4176.00
Annual Estimated Results (A*: Actual / E*: Estimated)
YEARS FY15A FY16E FY17E
Net Sales 4978.42 5705.27 6504.01
EBITDA 819.97 935.66 1053.65
Net Profit 321.86 389.71 464.14
EPS 37.00 44.79 53.35
P/E 12.97 10.72 9.00
Shareholding Pattern (%)
1 Year Comparative Graph
TCPL PACKAGING LTD BSE SENSEX
SYNOPSIS
TCPL Packaging Ltd is one of India's largest
manufacturers of printed folding cartons, & is one of
few listed packaging companies in India and exports a
variety of packing materials to its customers based in
UAE and Europe countries.
In Q4 FY15, net profit Jumps to Rs. 86.76 million, an
increase of 104.53% y-o-y as against Rs. 42.42 million
in the corresponding quarter of the previous year.
The company’s net sales grew by 18.73% y-o-y to Rs.
1289.61 million in Q4 FY15 from Rs. 1086.16 million
in Q4 FY14.
Operating profit rose by 19.11% and stood at Rs.
211.56 million in 4th quarter of FY15 as against Rs.
177.62 million in the corresponding period of the
previous year.
Profit before tax (PBT) of the company increased by
69.30% y-o-y of Rs. 113.84 million in Q4 FY15
compared to Rs. 67.24 million in Q4 FY14.
EPS of Rs. 9.97 for the 4th quarter of FY15 as against an
EPS of Rs. 4.88 for the corresponding quarter of the
previous year.
The company has recommended a dividend of Rs.
6.00/- per Share on face value of Rs. 10.00/- each for
the financial year 2014-15.
Net profit grew by 157% to Rs 321.86 million for the
end of FY15 from Rs 125.03 million for the end of
FY14.
Net Sales and PAT of the company are expected to
grow at a CAGR of 15% and 36% over 2014 to 2017E
respectively.
PEER GROUPS CMP MARKET CAP EPS P/E (X) P/BV(X) DIVIDEND
Company Name (Rs.) Rs. in mn. (Rs.) Ratio Ratio (%)
TCPL Packaging Ltd 480.00 4176.00 37.00 12.97 3.67 60.00
Seshasayee Paper & Boards Ltd 201.00 2535.30 13.75 14.62 0.63 40.00
Tamil Nadu Newsprint & Papers Ltd 156.00 10796.90 24.09 6.48 0.82 60.00
Kauntum Papers Ltd 94.50 824.60 28.69 3.29 0.62 10.00

2. Recommendation & Analysis - ‘BUY’
For the 4th quarter of FY15, Net sales of the company registered 18.73% up y-o-y to Rs. 1289.61 million from Rs.
1086.16 million for the 4th quarter of FY14. In Q4 FY15, net profit Jumps to Rs. 86.76 million, an increase of
104.53% y-o-y as against Rs. 42.42 million in the corresponding quarter of the previous year. Profit before tax
(PBT) of the company increased by 69.30% y-o-y of Rs. 113.84 million in Q4 FY15 compared to Rs. 67.24 million
in Q4 FY14. The company has commenced commercial production at its new plant near Guwahati, Assam from
26th January, 2015.
The Company’s continuous growth in the economy has created a number of opportunities for servicing the
packaging requirements of the FMCG, food, tobacco, liquor and other consumer product manufacturers. Due to
geographical locations of the plants set-up by Company, it is ideally suited for catering to both the export market
as well as domestic market across India. Therefore, with the change in economic condition, lifestyle of people and
launch of organised retail etc. the demand for packaged goods are expected to rise substantially. We expect that
the company surplus scenario is likely to continue for the next three years, will keep its growth story in the
coming quarters also. Over 2014-2017E, we expect the company to post a CAGR of 15% and 36% in its top-line
and bottom-line respectively. Hence, we recommend ‘BUY’ for ‘TCPL PACKAGING LTD “with a target price of
Rs. 555.00 on the stock.
QUARTERLY HIGHLIGHTS (PARENT BASIS)
Results updates- Q4 FY15,
TCPL Packaging Ltd is one of the largest
manufacturers of folding cartons. The company is
currently converting approx 3600 tons of
paperboard every month, making TCPL one of
India’s largest converters of paperboard and range
of products are printed blanks, Folding cartons,
Litho Lamination, Plastic cartons, Blister paper,
Shelf ready packaging., has reported its financial
results for the quarter ended 31st Mar, 2015.
Rs. In millions Mar-15 Mar-14 % Change
Net Sales 1289.61 1086.16 18.73
PAT 86.76 42.42 104.53
EPS 9.97 4.88 104.53
EBITDA 211.56 177.62 19.11
The company has achieved a turnover of Rs. 1289.61 million for the 4th quarter of the financial year 2014-15 as
against Rs. 1086.16 million in the corresponding quarter of the previous year. EBITDA or Operating profit grew
by 19.11% and stood at Rs. 211.56 million in 4th quarter of FY15 as against Rs. 177.62 million in the 4th quarter of
FY14. In Q4 FY15, net profit Jumps to Rs. 86.76 million, an increase of 104.53% y-o-y as against Rs. 42.42 million
in Q4 FY14. The company has reported an EPS of Rs. 9.97 for the 4th quarter of FY15 as against an EPS of Rs. 4.88
in the corresponding quarter of the previous year.

3. Break up of Expenditure
During the quarter, total Expenditure rose by 16 per cent mainly on account of Consumption of Raw Materials
19%, Other Expenditure by 17% and Employee Cost by 35% are the primary attribute for the growth of
expenditure when compared to corresponding quarter of previous year. Total expenditure in Q4 FY15 stood to
Rs. 1134.46 million as against Rs. 974.47 million in Q4 FY14.
Break up of Expenditure
(Value in Millions)
Q4 FY15 Q4 FY14
Consumption of Raw Materials 726.78 609.32
Employee Cost 97.34 71.85
Depreciation 56.40 65.93
Other Expenditure 263.88 224.83
COMPANY PROFILE
TCPL Packaging Ltd, formerly 21st Century Printers Ltd was incorporated in August 1987. It is one of leading and
largest manufacturers of folding cartons in India. The company began commercial production at its plant at
Silvassa, Union Territory of Dadra & Nagar Haveli, in April 1990, with a web-fed printing machine equipped with
an in-line die cutter.
TCPL Packaging Ltd. operates out of its six manufacturing units ; three in Silvassa, 180 kms from Mumbai in
Western India ; two in Haridwar, 200 kms from Delhi in Northern India ; and one in Goa, 600 kms from Mumbai
in Western India. All the plants are ISO 9001: 2008, ISO 22000: 2005 certified and are also compliant with
BRC/IoP Global Standard-Packaging Issue 3, which is suitable for direct food contact. In addition, plants at
Silvassa and Haridwar are also FSC certified & SEDEX Compliant.
TCPL is one of the largest exporters of printed cartons from India. It regularly caters to consumers in countries
like UK, The Netherlands, UAE, Bangladesh etc. Exports constitute about 22% of TCPL's annual revenues.
The first client being Godfrey Phillips India (associates of Phillip Morris International).TCPL had its initial
experience in the cigarette industry. The second six color rotogravure machine was commissioned at its plant in
1995. With this, it also started forays in the liquor industry.
Business areas

4. • Cigarette
CPL Packaging Ltd. is currently catering to the Phillip Morris and BAT associate companies in India and other
leading cigarette manufacturers in the region; it can undertake both long and short run jobs either by
gravure or offset process. The packs are subject to stringent quality checks such as GC tester and crease
stiffness tester which are available at its laboratories.
• Liquor
TCPL is currently one of the largest manufacturers of liquor cartons in India, catering to all liquor majors in
the industry. With its versatile printing facility, it can manufacture liquor cartons with inline UV varnish as
well as die cutting in a single operation.
• Food
TCPL is a regular and approved vendor to leading food and beverage manufacturing companies in India such
as Nestle, General Mills, Ferrero, GSK, Kellogg India, Heinz, Amul, Hindustan Unilever, Tata Global Beverages
and many other smaller Indian companies. Besides, TCPL is a regular exporter to the food and bakery
industry in UAE, Netherlands and UK.
• FMCG
The company assists its customers in product innovation and design and extensive expertise in providing
customers with both structural & graphic design is a big advantage for its customers to offer value added and
unique packaging for the market place having many customers Hindustan Unilever, Emami, Anchor, Colgate,
Godrej Sara Lee, Godrej Consumer Products, Cavin Kare, Marico, Johnson & Johnson, S.C.Johnson, Cholayil,
Hygeinic.
• Others
The company has clients include host of other customers in segments such as automobile, stationery,
pharmaceuticals and the airline industry such as Kingfisher and Jet Airways and caters to one of the largest
stationery products manufacturer in the country, Hindustan Pencils Ltd.
Certifications
• BRC/IOP certificate, making TCPL one of the few Indian packaging companies to have achieved this
certification.
• TCPL Certified by ISO: 9002 in the first printing and packaging unit in India & re-certified with the latest
standard ISO: 9001: 2008.
• The company Haridwar factory is certified for ISO 22000:2005 (Food Safety Management System) for
food & non food paperboard based boxes.

5. FINANCIAL HIGHLIGHT (PARENT BASIS) (A*- Actual, E* -Estimations & Rs. In Millions)
Balance Sheet as at March31, 2014 -2017E
2014A 2015A 2016E 2017E
I. EQUITY AND LIABILITIES:
A. Shareholders’ Funds
a) Share Capital 87.00 87.00 87.00 87.00
b) Reserves and Surplus 792.27 1051.30 1345.66 1682.08
Sub-Total-Net worth 879.27 1138.30 1432.66 1769.08
B. Non-Current Liabilities:
a) Long-term borrowings 781.74 974.25 1139.87 1276.66
b) Deferred Tax Liabilities [Net] 120.41 132.91 143.54 154.16
c) Other Long Term Liabilities 6.29 7.61 8.75 9.89
d) Long Term Provisions 15.41 23.29 28.41 33.24
Sub-Total-Long term liabilities 923.85 1138.06 1320.58 1473.96
C. Current Liabilities:
a) Short-term borrowings 619.30 589.61 566.03 546.78
b) Trade Payables 354.26 604.10 797.41 956.89
c) Other Current Liabilities 406.33 439.85 492.63 541.90
d) Short Term Provisions 25.45 62.83 78.54 92.67
Sub-Total-Current Liabilities 1405.34 1696.39 1934.61 2138.24
TOTAL-EQUITY AND LIABILITIES (A+B+C) 3208.46 3972.75 4687.85 5381.28
II. ASSETS:
D. Non-Current Assets:
Fixed Assets
i. Tangible Assets 1826.79 2272.84 2704.68 3137.43
ii. Intangible Assets 5.56 6.45 7.35 8.31
iii. Capital work-in-progress 40.05 17.24 12.07 13.27
a) Sub-Total-Fixed Assets 1872.40 2296.53 2724.10 3159.01
b) other non-current assets 26.77 1.33 1.49 1.64
c) Long Term Loans and Advances 21.44 119.83 174.95 223.94
Sub-Total-Non-Current Assets 1920.61 2417.69 2900.54 3384.59
E. Current Assets:
a) Inventories 474.37 585.15 690.48 782.53
b) Trade Receivables 738.79 823.36 905.70 978.15
c) Cash and Bank Balances 8.98 62.35 90.54 117.70
d) Short Term Loans and Advances 51.23 61.07 71.45 82.17
e) Other Current Assets 14.48 23.13 29.14 36.14
Sub-Total-Current Assets 1287.85 1555.06 1787.31 1996.69
TOTAL-ASSETS (D+E) 3208.46 3972.75 4687.85 5381.28

6. Annual Profit & Loss Statement for the period of 2014 to 2017E
Value(Rs.in.mn) FY14A FY15A FY16E FY17E
Description 12m 12m 12m 12m
Net Sales 3949.21 4978.42 5705.27 6504.01
Other Income 0.00 0.00 0.00 0.00
Total Income 3949.21 4978.42 5705.27 6504.01
Expenditure -3337.41 -4158.45 -4769.61 -5450.36
Operating Profit 611.80 819.97 935.66 1053.65
Interest -176.56 -172.88 -190.17 -205.38
Gross profit 435.24 647.09 745.50 848.27
Depreciation -237.93 -216.73 -234.07 -250.92
Profit Before Tax 197.31 430.36 511.43 597.35
Tax -72.28 -108.50 -121.72 -133.21
Net Profit 125.03 321.86 389.71 464.14
Equity capital 87.00 87.00 87.00 87.00
Reserves 792.27 1051.30 1345.66 1682.08
Face value 10.00 10.00 10.00 10.00
EPS 14.37 37.00 44.79 53.35
Quarterly Profit & Loss Statement for the period of 30 Sep, 2014 to 30 June, 2015E
Value(Rs.in.mn) 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15E
Description 3m 3m 3m 3m
Net sales 1240.70 1325.30 1289.61 1321.85
Other income 0.00 0.00 0.00 0.00
Total Income 1240.70 1325.30 1289.61 1321.85
Expenditure -1038.12 -1107.06 -1078.05 -1100.44
Operating profit 202.58 218.24 211.56 221.41
Interest -43.78 -42.84 -41.31 -42.55
Gross profit 158.80 175.40 170.25 178.86
Depreciation -53.62 -54.74 -56.41 -49.08
Profit Before Tax 105.18 120.66 113.84 129.78
Tax -22.96 -29.40 -27.08 -31.28
Net Profit 82.22 91.26 86.76 98.51
Equity capital 87.00 87.00 87.00 87.00
Face value 10.00 10.00 10.00 10.00
EPS 9.45 10.49 9.97 11.32

7. Ratio Analysis
Particulars FY14A FY15A FY16E FY17E
EPS (Rs.) 14.37 37.00 44.79 53.35
EBITDA Margin (%) 15.49% 16.47% 16.40% 16.20%
PBT Margin (%) 5.00% 8.64% 8.96% 9.18%
PAT Margin (%) 3.17% 6.47% 6.83% 7.14%
P/E Ratio (x) 33.40 12.97 10.72 9.00
ROE (%) 14.22% 28.28% 27.20% 26.24%
ROCE (%) 37.26% 38.37% 37.27% 36.31%
Debt Equity Ratio 1.59 1.37 1.19 1.03
EV/EBITDA (x) 9.10 6.92 6.19 5.58
Book Value (Rs.) 101.07 130.84 164.67 203.34
P/BV 4.75 3.67 2.91 2.36
Charts

8. OUTLOOK AND CONCLUSION
At the current market price of Rs. 480.00 the stock P/E ratio is at 10.72 x FY16E and 9.00 x FY17E
respectively.
Earning per share (EPS) of the company for the earnings for FY16E and FY17E is seen at Rs.44.79 and
Rs.53.35 respectively.
Net Sales and PAT of the company are expected to grow at a CAGR of 15% and 36% over 2014 to 2017E
respectively.
On the basis of EV/EBITDA, the stock trades at 6.19 x for FY16E and 5.58 x for FY17E.
Price to Book Value of the stock is expected to be at 2.91 x and 2.36 x respectively for FY16E and FY17E.
We recommend ‘BUY’ in this particular scrip with a target price of Rs.555.00 for Medium to Long term
investment.

9. INDUSTRY OVERVIEW
The paper industry in India has become more promising as the domestic demand is on the rise. Increasing
population and literacy rate, growth in GDP, improvement in manufacturing sector and lifestyle of individuals are
expected to account for the growth in the paper industry of India. BILT and ITC are among the largest producers
of paper and paperboard in India. Many of the existing players are increasing their capacity to meet the growing
demand. The focus of paper industry is now shifting towards more eco-friendly products and technology.
Government of India has established rules and regulations to control the population and degradation of forest.
These measures taken by the government has brought the significant changes in the paper industry of India.
The paper industry in India is expected to grow at the CAGR of around 9.6% during 2012-2017, which will make
the revenues of paper industry of India to reach up to USD 11.83 Billion by 2017. About 70% of the total installed
capacity of paper production in India is accounted by Gujarat, West Bengal, Orissa, Andhra Pradesh, Karnataka
and Maharashtra. Uttar Pradesh, Tamil Nadu, Haryana, Kerala, Bihar and Assam together account for about 25%
of the total paper production in India.
The Indian Paper Industry as a whole is witnessing action on quite few fronts. The Printing and Writing (P&W)
Paper Industry (on which this report focuses on) is a segment which is slowly showing a shift from a commodity
product to branded product and become in true sense a ‘FMCG’ product. It is in this context, we review the
industry looking at the overall dynamics – size, growth, key players, product portfolio comparison, sales channel,
customers and distribution related aspects of the same.
Industry Structure and Developments
The year 2013-14 witnessed sluggish growth in FMCG industry. However with the new government at the centre
it is expected that the country returns to the high growth rates seen in the past. We thus anticipate higher rates
of industry growth in the future, which will be favourable to the prospects for our business. Therefore, with the
change in economic condition, lifestyle of people and launch of organised retail etc. the demand for packaged
goods are expected to rise substantially.
Disclaimer:
This document is prepared by our research analysts and it does not constitute an offer or solicitation for the
purchase or sale of any financial instrument or as an official confirmation of any transaction. The information
contained herein is from publicly available data or other sources believed to be reliable but we do not represent that
it is accurate or complete and it should not be relied on as such. Firstcall Research or any of its affiliates shall not be
in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the
information contained in this report. Firstcall Research and/ or its affiliates and/or employees will not be liable for
the recipients’ investment decision based on this document.

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