National Plastic - National Plastic

📊 BSE: 531287 🏢 Plastic Products - Industrial 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

The company reported growth in its primary segments of Automotive and Consumer Durables, though specific segment-wise revenue figures were not disclosed. Overall Profit After Tax (PAT) grew by 7.26% YoY, reaching INR 9.03 Cr in FY 2024-25 compared to INR 8.42 Cr in FY 2023-24.

Geographic Revenue Split

Not disclosed in available documents; however, the company operates two manufacturing plants in Hosur, Tamil Nadu, and targets the domestic Indian market and exports.

Profitability Margins

Operating Profit Margin decreased by 4% YoY to 8.14% in FY 2024-25 from 8.51% in FY 2023-24. Net Profit Margin declined by 7% YoY to 2.91% from 3.13% in the previous year, primarily due to increased operational costs and commodity price volatility.

EBITDA Margin

Operating Profit Margin stands at 8.14% for FY 2024-25, reflecting a slight contraction from 8.51% in FY 2023-24 due to reduced margins on a higher base.

Capital Expenditure

The company is investing in Solar power plants and upgrading machines with technologies like hot foiling and robot welding. Specific INR values for planned CAPEX were not disclosed, but investments are described as being 'ahead of the curve'.

Credit Rating & Borrowing

The company improved its Debt-Equity Ratio by 15%, reducing it to 1.16 times in FY 2024-25 from 1.35 times in FY 2023-24. Interest Coverage Ratio remains stable at 3.13 times.

⚙️ Operational Drivers

Raw Materials

Plastics and various commodities; specific chemical names or percentage of total cost were not disclosed, but volatility in these prices is cited as a major threat to margins.

Capacity Expansion

Current operations are conducted through two plants in Hosur (SIDCO Industrial Estate and Devankottai Taluk). The company is continuously upgrading machines to include hot foiling, ultrasonic welding, blow molding, and robot welding to meet customer requirements.

Raw Material Costs

Raw material costs are subject to commodity price fluctuations, which contributed to a 7% decline in Net Profit Margin. The company focuses on value-added products to mitigate these costs.

Manufacturing Efficiency

The company utilizes automation and robot welding to improve efficiency. Inventory Turnover Ratio improved by 7% to 7.35 times, indicating better asset utilization.

Logistics & Distribution

Plants are strategically located in Hosur to ensure easy access to transportation modes and proximity to major Automotive and Consumer Durable OEMs.

📈 Strategic Growth

Expected Growth Rate

6.50%

Growth Strategy

Growth will be driven by the rising adoption of Electric Vehicles (EVs), where the company is already supplying components to two-wheeler manufacturers. Additional strategies include expanding the R&D center, increasing exports, participating in government tenders, and leveraging the 'Make in India' initiative in the electronics and consumer durables sectors.

Products & Services

Plastic molded products and components for the Automotive (ICE and EV), Consumer Durables, Packaging, and Electronics industries.

Brand Portfolio

National Plastic Technologies (part of the National Group with 70+ years of excellence).

New Products/Services

Value-added products for EV manufacturers and premium feature-led products for the consumer durables industry. Expected revenue contribution % not disclosed.

Market Expansion

Targeting increased volume in the EV segment and electronics manufacturing, which is expected to reach US$ 300 billion in India within a few years.

Market Share & Ranking

India is the 3rd largest consumer of plastics globally; the company identifies as a major supplier to the automotive and consumer durable sectors.

Strategic Alliances

The company is in constant discussion with OEMs and Tier-I players to add new customers, though specific partner names were not listed.

🌍 External Factors

Industry Trends

The Indian plastic industry is expected to grow at a CAGR of 6.50% to reach USD 67.82 billion by 2030. Trends include the substitution of traditional materials with plastics in EV (weight reduction) and a shift toward premium, sustainable consumer durables.

Competitive Landscape

The sector contains over 30,000 companies; the company faces 'increasing competition' but maintains a competitive edge through technology adoption like ultrasonic welding and hot foiling.

Competitive Moat

Moat is built on 70+ years of group experience, long-standing relationships with OEMs spanning decades, and strategically located plants. Sustainability is supported by high switching costs for OEMs once a supplier is integrated into their production line.

Macro Economic Sensitivity

Highly sensitive to Indian GDP growth (6.50% in FY25) and per capita plastic consumption, which is currently low at 15 kgs compared to developed nations.

Consumer Behavior

Shift toward locally manufactured ('Make in India') and premium, technology-led consumer products.

Geopolitical Risks

Global uncertainty is mentioned as a challenge, but the company's focus on domestic 'Make in India' initiatives provides a buffer against trade barriers.

⚖️ Regulatory & Governance

Industry Regulations

Compliant with all statutory and regulatory requirements for its manufacturing plants; no major pending litigations reported.

Environmental Compliance

All plants are compliant with statutory requirements; the company is investing in Solar power and power-saving devices to meet environmental standards.

Legal Contingencies

BSE imposed a fine of INR 1.80 lakhs plus GST for delayed submission of financial results for the years 2014-15 and 2015-16; a review application is pending. A separate INR 2 lakh fine regarding board composition was withdrawn by BSE after company submissions.

⚠️ Risk Analysis

Key Uncertainties

Commodity price volatility and increase in operation costs are the primary risks that could impact margins by 5-10% based on historical margin fluctuations.