Packaging Gateway

Daily Newsletter

08 August 2023

Daily Newsletter

TCPL reports consolidated profit after tax increase of 5% in Q1 FY24

The company attributes this result to growth in sales volumes in its flexible packaging and export divisions.

Indian sustainable packaging producer TCPL Packaging (TCPL) has reported its consolidated profit after tax grew by 5% to Rs236m ($2.85m) in the first quarter (Q1) of financial year 2024 (FY24).

During the period ending 30 June 2023, the company’s profit before tax was Rs321m, up 1% from Rs318m in the same period a year ago.

Consolidated revenues of TCPL also increased by 8% to Rs3.71bn in Q1 FY24, from Rs3.42bn in Q1 FY23.

According to the company, these revenues were primarily driven by growth in sales volumes in its flexible packaging and export divisions.

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) also grew 13% to Rs614m while its EBITDA margin increased by 64 basis points to 16.5% over the quarter.

TCPL's managing director Saket Kanoria said: “We are pleased to present our first-quarter results, reflecting a promising start amidst the challenges posed by the current operating environment.

“As a company, we remain firmly committed to our growth strategy, which centres around diversifying our presence across various end-user industries. This strategic approach has consistently allowed us to outperform our underlying industries, making us proud to be among the select few listed companies in India that have achieved continuous year-on-year revenue growth over the past 20 years, boasting an impressive CAGR [compound annual growth rate] of 18.4%.

“With a strong focus on sustainable growth, we remain committed to delivering long-term value to all stakeholders. Looking ahead, we remain excited about the tremendous potential for packaging solutions in the FMCG [fast-moving consumer goods] and F&B [food and beverage] industries, along with other emerging sectors. Our strategic focus on sustainable packaging positions us at the forefront of environmental stewardship and innovation, driving positive change within the industry.”

TCPL is headquartered in Mumbai and provides paperboard-based packaging solutions, including folding cartons, printed blanks and outers, shelf-ready packaging, and more.

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.