Mold-Tek Packaging Ltd (MOLDTKPAC) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator (Emkay Global Financial Services Limited): Ladies and gentlemen, good day, and welcome to the Mold-Tek Packaging Limited Q2 FY '27 earnings conference call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this call is being recorded. I now hand the conference over to Mr. Rajesh Kumar from Emkay Global Financial Services Limited. Thank you, and over to you, sir.
Rajesh Kumar (Emkay Global Financial Services Limited): Good evening, everyone. I would like to welcome Mr. J. Lakshmana Rao, Chairman and Managing Director of Mold-Tek Packaging. We thank him for this opportunity. I shall now hand over the call to him for his opening remarks. Over to you, sir.
J. Lakshmana Rao (Mold-Tek Packaging Limited): Good evening, everybody. Thank you very much for showing interest in our quarterly con-call. I'm very glad to inform you that this
J. Lakshmana Rao (Mold-Tek Packaging Limited): Volumes of the company in the Q2 has gone up by 10.1% compared to last Q2. And profits have jumped by 36% resulting in a very healthy EBITDA per kg of 46.5. So, when you compare to the EBITDA per kg of last Q2 which was somewhere around ₹39, there is a jump of almost 18% in EBITDA margin which is a healthy sign considering the geopolitical situation around us. All the segments are doing very good in this quarter and one of the main most important quarter segments for us is pharma is growing grown by 26.3% in volume. Food and FMCG is up by 23.7%. Paints are also up by almost 9% while the lubricant pack continue to be a drag with a 12.3% decline. So, the quarter turned out to be a very good performer in view of better segments better contributing segments are grown at a faster rate compared to the other segments like lubricants and paint and thereby improving the profitability of the company. And I mentioned in my previous calls our consolidation of the units at Hyderabad resulting in single unit producing entire IML labels under one roof has resulted in considerable savings in the cost and improved efficiencies. And also removal of couple of production units and clubbing them in the Sultanpur unit has resulted in overall improvement in the performance and cost controls. Going forward company is very positive about the food and FMCG because the Panipat plant started picking up clients and the numbers are slowly getting added. And by next season starting from Jan, Feb, I think we will be seeing good numbers witnessing, I mean coming from the northern region to Panipat. And another good news is that Iodex project which has been on hold for more than 3 years has been cleared with some changes and the change moulds are also getting ready by December November, and probably in December or Jan will be starting commercial production of Iodex balm packs. They run into millions of pieces a month. And again coming to another, three new products have been under development for three MNCs of sizeable quantities. And they all will be launched somewhere in the end of December or January, contributing towards the growth of food and FMCG further in the next coming years also. This is briefly the highlights of the quarter. I think we can share more details on a question-and-answer session. Over to the operator.
Moderator (Emkay Global Financial Services Limited): Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press "*" and "1" on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press "*" and "2". Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Shirish Pardeshi from Motilal Oswal. Please proceed.
Shirish Pardeshi (Motilal Oswal): Good evening Mr. Rao and team. Thank you for the opportunity and congratulations. Sir starting with the volume growth in the paint I think of paint industry is expected to deliver a good number and there is a price increases also is been happening. But when we look at the volume growth in this quarter which is lower, so two questions here. What is worked and is there any backlog which is getting shifted in quarter three?
J. Lakshmana Rao (Mold-Tek Packaging Limited): No the paint the volumes are grown up by 8.6%, value wise they are up by 26%. So, 8 to 10% is a general growth of the paint industry. So, I feel comfortable growth has been already achieved in paint and going forward things may improve further because we are now at Cheyyar started taking orders from nearby clients in the south which are adding numbers gradually and hopefully this may come close to double digits in the second half.
Shirish Pardeshi (Motilal Oswal): Okay. My second question is on food and FMCG. I think the volume growth is picking up but then just you mention that there are some more clients
Shirish Pardeshi (Motilal Oswal): So, is this volume growth momentum will continue in second half?
J. Lakshmana Rao (Mold-Tek Packaging Limited): Yes, I am very confident that the volume growth will continue to grow at a healthy level because not only the current orders are being executed and new moulds are being added and three or four new products are on the pipeline. We are, which are getting into production in November and December, which will certainly add value to the food and FMCG sector in the coming quarters.
Shirish Pardeshi (Motilal Oswal): Okay, that's helpful. And last on the EBITDA per kg now, we're reaching towards about 40 plus rather this quarter we have done 46. So, when when this mix has tilted towards FMCG and which is a higher value, higher margin product, is it safer that the full year, we will be able to maintain more than 45 in the range of 45-50?
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