Capitaline

Results 11-Feb-25

Analysis

Garware Technical Fibres

Solid growth

Net sales (including other operating income) of Garware Technical Fibres has increased 21.20% to Rs 350.72 crore. Sales of Synthetic segment has gone up 15.38% to Rs 275.98 crore (accounting for 77.03% of total sales). Sales of Fiber & Industrial segment has gone up 39.54% to Rs 82.28 crore (accounting for 22.97% of total sales). Inter-segment sales came down from Rs 8.78 crore to Rs 7.54 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 17.59% to Rs 67.89 crore. PBIT of Synthetic segment rose 14.86% to Rs 54.38 crore (accounting for 80.11% of total PBIT). PBIT of Fiber & Industrial segment rose 30.08% to Rs 13.51 crore (accounting for 19.89% of total PBIT).

PBIT margin of Synthetic segment fell from 19.79% to 19.70%. PBIT margin of Fiber & Industrial segment fell from 17.61% to 16.41%. Overall PBIT margin fell from 19.36% to 18.95%.

Operating profit margin has declined from 18.48% to 18.43%, leading to 20.87% rise in operating profit to Rs 64.64 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 28.22% to 26.81%. Purchase of finished goods cost rose from 3.03% to 4.20%. Employee cost decreased from 15.70% to 15.00%. Other expenses rose from 35.27% to 36.11%.

Other income fell 20.86% to Rs 8.88 crore. PBIDT rose 13.63% to Rs 73.52 crore. Provision for interest rose 46.44% to Rs 4.32 crore.

PBDT rose 12.06% to Rs 69.2 crore. Provision for depreciation rose 7.86% to Rs 7.27 crore.

Profit before tax grew 12.58% to Rs 61.93 crore. Share of profit/loss was 100% higher at Rs 0.02 crore. Provision for tax was expense of Rs 14.16 crore, compared to Rs 11.75 crore. Effective tax rate was 22.86% compared to 21.36%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 10.40% to Rs 47.77 crore.

Promoters’ stake was 53.00% as of 31 December 2024 ,compared to 52.70% as of 31 December 2023.

In a statement, Mr. Vayu Garware, CMD, Garware Technical Fibres Ltd. said, "Q3 FY25 has shown a good Top-line growth of 21% over Q3 FY24. A significant part of the growth in Q3 revenue is led by the Geosynthetics business followed by Aquaculture. Operating EBIDTA for Q3 FY25 has shown a similar 21% growth over Q3 FY24. PBT growth has been impacted to some extent by lower other income. Profit before tax grew by 17% in 9M FY25 against the previous year 9MFY24 and operating EBIDTA has grown by 22 % over 9MFY24 which is on track on our plans. Based on current visibility we expect the full year outlook to be positive.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Garware Technical Fibres has increased 17.41% to Rs 1107.56 crore. Sales of Synthetic segment has gone up 15.81% to Rs 903.52 crore (accounting for 79.92% of total sales). Sales of Fiber & Industrial segment has gone up 22.98% to Rs 226.96 crore (accounting for 20.08% of total sales). Inter-segment sales rose Rs 21.35 crore to Rs 22.91 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 19.50% to Rs 229.84 crore. PBIT of Synthetic segment rose 18.49% to Rs 192.42 crore (accounting for 83.72% of total PBIT). PBIT of Fiber & Industrial segment rose 24.97% to Rs 37.42 crore (accounting for 16.28% of total PBIT).

PBIT margin of Synthetic segment rose from 20.82% to 21.30%. PBIT margin of Fiber & Industrial segment rose from 16.23% to 16.49%. Overall PBIT margin rose from 19.94% to 20.33%.

Operating profit margin has jumped from 19.11% to 19.91%, leading to 22.32% rise in operating profit to Rs 220.50 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 28.59% to 26.82%. Purchase of finished goods cost rose from 2.86% to 3.58%. Employee cost decreased from 14.65% to 14.06%. Other expenses rose from 35.69% to 36.41%.

Other income fell 5.06% to Rs 29.11 crore. PBIDT rose 18.34% to Rs 249.61 crore. Provision for interest rose 46.37% to Rs 16.92 crore.

PBDT rose 16.71% to Rs 232.69 crore. Provision for depreciation rose 9.88% to Rs 21.02 crore.

Profit before tax grew 17.44% to Rs 211.67 crore. Share of profit/loss was 62.50% higher at Rs -0.03 crore. Provision for tax was expense of Rs 51.18 crore, compared to Rs 41.53 crore. Effective tax rate was 24.18% compared to 23.05%.

Minority interest increased 62.50% to Rs -0.03 crore. Net profit attributable to owners of the company increased 15.70% to Rs 160.49 crore.

Promoters’ stake was 53.00% as of 31 December 2024 ,compared to 52.70% as of 31 December 2023 .

The stock trades at Rs 826

Garware Technical Fibres : Consolidated Results
Particulars	2412 (03)	2312 (03)	Var.(%)	2412 (09)	2312 (09)	Var.(%)	2403 (12)	2303 (12)	Var.(%)
Net Sales	350.72	289.37	21	1,107.56	943.34	17	1,325.61	1,305.55	2
OPM (%)	18.4	18.5		19.9	19.1		20.5	17.6
OP	64.64	53.48	21	220.5	180.27	22	271.61	229.54	18
Other Inc.	8.88	11.22	-21	29.11	30.66	-5	43.19	27.9	55
PBIDT	73.52	64.70	14	249.61	210.93	18	314.80	257.44	22
Interest	4.32	2.95	46	16.92	11.56	46	17.21	11.95	44
PBDT	69.20	61.75	12	232.69	199.37	17	297.59	245.49	21
Depreciation	7.27	6.74	8	21.02	19.13	10	25.88	22.31	16
PBT	61.95	55.02	13	211.64	180.16	17	271.71	223.18	22
Taxation	14.16	11.75	21	51.18	41.53	23	63.53	50.98	25
PAT	47.79	43.27	10	160.46	138.63	16	208.18	172.20	21
Minority Interest (MI)	0.02	0		-0.03	-0.08		0	0
Net profit	47.77	43.27	10	160.49	138.71	16	208.18	172.20	21
EPS (Rs)*	#	#		#	#		21.0	17.3
Notes
* EPS is on current equity of Rs 99.27 crore, Face value of Rs 10, Excluding extraordinary items.
# EPS is not annualised
bps : Basis points
Figures in Rs crore
Source: Capitaline Corporate Database

Garware Technical Fibres : Consolidated Segment Results
	% of (Total)	2412 (03)	2312 (03)	Var.(%)	% of (Total)	2412 (09)	2312 (09)	Var.(%)	% of (Total)	2403 (12)	2303 (12)	Var.(%)
Sales
Synthetic Cordage	77	275.98	239.19	15	80	903.52	780.15	16	84	1,114.89	1,103.87	1
Fiber and Industrial Products & Projects	23	82.28	58.96	40	20	226.96	184.54	23	18	240.05	222.14	8
Total Reported Sales	100	358.26	298.15	20	100	1130.48	964.69	17	100	1,326.01	1,214.52	9
Less: Inter segment revenues		7.54	8.78	-14		22.91	21.35	7		29.33	20.46	43
Net Sales		350.72	289.37	21		1107.57	943.34	17		1,325.61	1,305.55	2
PBIT
Synthetic Cordage	80	54.38	47.35	15	84	192.42	162.4	18	86	245.45	219.09	12
Fiber and Industrial Products & Projects	20	13.51	10.38	30	16	37.42	29.95	25	14	39.88	26.4	51
Total PBIT	100	67.89	57.73	18	100	229.84	192.35	19	100	285.33	245.49	16
Less : Interest		4.32	2.95	46		16.92	11.56	46		17.21	11.95	44
Add: Other un-allcoable		-1.63	0.23	-809		-1.25	-0.55	127		3.59	-10.36	-135
PBT		61.94	55.01	13		211.67	180.24	17		271.71	223.18	22

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