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Moldtek Packaging Limited, a manufacturer of injection-moulded rigid plastic packaging containers, has reported a net profit of ₹19.42 crore in the second quarter ended September 30, 2022, as against ₹17.59 crore in the comparable quarter last year, showing a growth of 10.36 per cent.
The company registered a 14.43 per cent growth in revenue at ₹182.55 crore against ₹159.53 crore.
In the first half, the company reported a net profit of ₹41.12 crore (₹29.67 crore), showing a growth of 38.59 per cent. During the period, it registered a revenue of ₹390.39 crore (₹293.26 crore), registering a growth of 33.12 per cent.
The company said the raw material costs witnessed unprecedented volatility in the last few quarters.
“This has led to lower demand and destocking by the customers. There was a fall in the raw material prices towards the end of first quarter and more stabilisation is seen in the second quarter,” the company said in a statement.
“Delay in IML (Injection Mold Labelling) printing machine supply restricted company’s ability to meet the demand for our FMCG products in the second quarter. Besides, continuous electronic breakdown of Flexo machines made us to purchase the labels from third parties,” it said.
“Arrival of two new printing machines, supposed to arrive in August, are delayed due to shortage of semiconductors/electronic parts. These are expected to be commissioned by end of December 2022,” it said.
“Once these become operational, we can execute more FMCG orders and also control costs,” it said.
To save power costs, the company is augmenting its solar capacities. “Telangana and Andhra Pradesh governments have increased power tariffs by around 15 per cent in the current year. To save the cost, the company has tied up with Spren Energy for installing solar panels across all our manufacturing units,” it said.
Capex plans
The company said it had spent ₹50 crore out of the ₹125-crore plan to expand the capacities. “We are expecting the expansion to be completed in the next 2-3 quarters,” it said.
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