Mold-Tek Packaging profit up 10.36% in Q2 FY'23

Hyderabad: Mold-Tek Packaging Ltd, the leader in manufacturing injection moulded rigid plastic packaging containers, reported 10.36 per cent rise in net profit at Rs 19.42 crore in the quarter (Q2) ended September 30, 2022 as compared to Rs 17.59 crore in the previous corresponding period. Its revenue from operations increased 14.43 per cent to Rs 182.55 crore in Q2 FY23 from Rs 159.53 crore in same quarter a year ago.

The company has received LOI from ABG to set up a facility ay Panipat, Haryana and it is planning to acquire 2 acres of land for setting up a new plant with an investment of Rs 30 crore to cater to the requirements of Aditya Birla Group and Food & FMCG clients. It has acquired 9,421 sq meters of land to set up a second plant at Daman with robotic IML facilities to produce Food & FMCG IML-containers for the increasing demand in western region.

Telangana and AP governments have increased power tariffs by around 15 per cent in the current year. To save the cost, the company has entered into an agreement with Spren Energy Pvt Ltd for installing solar panels across all the units. With this, it can control increase in power cost.

"The lube-pack business continued to move ahead on its high growth trajectory with 26.57 per cent volume growth and food and FMCG recorded 40 per cent volume growth. In spite of extended monsoon, paint-pack volumes have been stable in this quarter. Raw material (RM) prices are experiencing huge unprecedented volatility since last few quarters. Unstability in RM prices led to deferment of customer demand and destocking by customer. There was a fall in the raw material prices towards the end of Q1 and more stabilisation seen in Q2," J Lakshmana Rao, CMD of the company said in a statement.

"Delay in IML printing machine supply restricted Company's ability to meet the demand for its FMCG products in this Q2. Apart from this, continues electronic breakdown of Flexo machines made Company to purchase HTL/IML labels from third parties. Two new printing machines supposed to arrive in August are delayed due to semiconductors/electronic parts inputs shortages. These are expected to be commissioned by end of December 2022. With this, the company can execute more FMCG orders and also control costs in future," he added.

Apart from these two machines, the company is also planning one more advance printing machine to further enhance the label printing capacity. During this quarter, it bagged new orders from the reputed companies like Deccan Grainz, Devee Nutri, Kamadhenu, S N Traders and Sherwin Exports. It also received a sizable USA export order from reputable customers. It has gradually added capacities in the Satara, Mysore, Vizag and Hyderabad plants in the last few months.