Garware Hi Tech Films held a conference call on 15 November 2024 to discuss the results for the quarter ended September 2024 and way forward. Mr. Mohan S. Adsul, Director-Technical, Mr Deepak Joshi, Director of Sales and Marketing, Mr A. Venkataraman, Senior President, Corporate Affairs and Finance, and Mr Abhishek Agarwal, Chief Financial Officer of the company addressed the call.

Highlights of the Concall

• Revenue from Operations stood at Rs 620.6 crore, up 56.3% YoY and 30.8% QoQ. Growth primarily fuelled by robust sales momentum in SCF (solar control films) and PPF (paint control films), apart from product expansion across all segments

• EBITDA stood at Rs 150.5 crore, up by 103.3% YoY and 15.8% QoQ. EBITDA margin improved significantly to 24.2% compared to 18.6% in Q2 FY24 primarily due to increased sale of value-added products across all segments and newer markets.

• PPF and SCF business maintained its growth trajectory during the quarter by growing 67% and 64% year-on-year, respectively. Industrial Product Division (IPD) business also showed a sharp growth and grew 30% YoY.

• SCF continues to show excellent performance achieving increased revenues compared to Q1. The growth is also attributed to its recent product innovations such as spectra pro and deco series, which have gained even wider acceptance and popularity in Q2.

• The company continues to witness a strong demand momentum from its PPF products, including titanium, white and black series. This segment continues to operate at a high-capacity to meet both domestic and international demand.

• The company new PPF production line with an annual capacity of 300 lakh square feet is progressing as planned and is on-track to commence commercial production by Q2FY26.

• Q2 saw a steady recovery in Industrial product division supported by a strong demand for speciality films. These high-margin products have contributed to its profitability, allowing it to serve premium customers while maintaining operational efficiency.

• Capacity utilization for Sun Control film was around 100% in Q2 and for paint protection it was around 135%.

• PAT experienced strong growth, reaching Rs 104.3 crore with 127.1% YoY and 18% QoQ increase, benefiting from an enhanced mix of high-margin products in portfolio.

• Exports continue to perform well comprising approximately 81.3% of Q2 revenue, with value-added products making up around 88% of this segment.

• Cash reserves now stand at Rs 544 crores as of September 30, 2024, with zero-debt, positioning it well to advance its strategic projects

• Currently the company has 160 Garware Application Studios (GAS) which it expects it to grow more than 200 led by growth in demand from tier 2 and tier 3 cities.

• The company has maintained its target revenue of Rs 2000 crore for FY25 and Rs 2500 crore for FY26.

• The company aims Ebitda margin of around 25% with a range of plus minus 3%.