Garware Hi Tech Films held a conference call on 10 February 2025 to discuss the results for the quarter ended December 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

• Q3FY25 Revenue from operations remained stable at Rs 466.4 crore, an increase of 2.8% YoY, despite facing industry headwinds and seasonal fluctuations. EBITDA grew by 10.7% YoY, supported by the sale of value-added products. Overall, PAT stood at Rs 60.8 crore, an increased by 8.8% YoY.

• The company has approved an investment of Rs 118 crore in TPU extrusion line with an annual capacity of 360 LSF at its Waluj Plant and the production is set to commence by October 2026. This line will enhance its manufacturing capabilities, optimize operational costs and support future market demand. The project is expected to be completed within 18 months, with a planned capacity of 360 LSF per year.

• The output from this new line will support the input requirements of both its existing and upcoming PPF production lines, ensuring seamless integration into its manufacturing processes while driving cost savings. Additionally, this line will accelerate R&D process and further expand value-added product portfolio, thus strengthening its market position.

• The company has recently launched the industry's first Coloured PPF and Headlight & Taillight Glass Protection which will open up new business opportunities in the market. Additionally, it has made strategic collaborations to ensure PPF offerings more accessible and supported by a comprehensive insurance program.

• The company has launched India’s 1st retail finance scheme for PPF, a groundbreaking partnership with Bajaj Finance Ltd. for premium protection made affordable & accessible with flexible, low-cost EMI options.

• The company has made a strategic alliance with InsuranceDekho to incorporate PPF coverage into vehicle insurance for comprehensive protection

• The company has been granted a new patent for Floatable Shrink Film.

• Value added product mix in Q3FY25 was 15% compared to 9% in Q3FY24

• SCF business grew 15% in Q3FY25 compared to Q3FY24 . This growth is attributed to the expansion of its architectural business. It expect this positive trend to continue further supported by the introduction of innovative products for the auto sector and new grades in the architectural and decorative film segment.

• IPD business grew 24% in Q3FY25 compared to Q3FY24 supported by strong demand for specialty films such as leading films, PCR, string films.

• The company is continuously expanding its PPF network in Tier 1 & Tier 2 cities. New GAS (Garware Application Studios) stores were opened in Mohali, Ludhiana, Assam, Aligarh, Varanasi, Bhubaneswar, Kondapur (HITEC City), Patna, Gurugram and other. Total GAS and PPF distributors stands currently at 175+.

• The fourth capex of additional PPF line is on track and is expected to be completed by September 2025.

• The company has maintained its revenue guidance of Rs 2500 crore in FY26 with margins expected to remain at 25% plus or minus 3%.