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Results
16-Nov-21
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Analysis
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Garware Technical Fibres
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Expect strong results in H2FY22
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Garware
Technical Fibres consolidated net sales increased 5.03% to Rs 281.83 crore in
Q2FY22 compared to Q2FY21. Sales of
Synthetic Cordage segment has gone up 6.75% to Rs 249.75 crore (accounting for
86.65% of total sales). Sales of Fiber
and Industrial Products & Projects segment has gone down 2.79% to Rs 38.48
crore (accounting for 13.35% of total sales).
Inter-segment sales rose Rs 5.21 crore to Rs 6.40 crore.
Operating
profit margin has declined from 21.37% to 18.10%, leading to 11.06% decline in
operating profit to Rs 51.00 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
22.38% to 31.23%. Purchase of finished
goods cost rose from 2.55% to 2.62%.
Employee cost decreased from 15.20% to 12.27%. Other expenses fell from 38.68% to
36.67%.
Other
income rose 20.02% to Rs 9.89 crore.
PBIDT fell 7.15% to Rs 60.89 crore.
Profit before interest, tax and other unallocable items (PBIT) has
slumped 10.44% to Rs 53.53 crore. PBIT
of Synthetic Cordage segment fell 9.56% to Rs 48.39 crore (accounting for
90.38% of total PBIT). PBIT of Fiber and
Industrial Products & Projects segment fell 17.93% to Rs 5.15 crore
(accounting for 9.62% of total PBIT).
PBIT
margin of Synthetic Cordage segment fell from 22.87% to 19.37%. PBIT margin of Fiber and Industrial Products
& Projects segment fell from 15.85% to 13.38%. Overall PBIT margin fell from 21.85% to
18.57%.
Provision
for interest fell 4.98% to Rs 2.67 crore.
PBDT fell 7.25% to Rs 58.22 crore.
Provision for depreciation rose 6.30% to Rs 5.4 crore. Profit before tax down 8.44% to Rs 52.82
crore. Provision for tax was expense of
Rs 11.93 crore, compared to Rs 13.34 crore.
Effective tax rate was 22.59% compared to 23.12%. Net profit
attributable to owners of the company decreased 7.80% to Rs 40.89 crore.
Equity
capital stood at Rs 20.94 crore as of 30 September 2021 to Rs 20.94 crore as of
30 September 2020. Per share face Value
remained same at Rs 10.00.
Promoters’
stake was 52.62% as of 30 September 2021 ,compared to 53.02% as of 30 September
2020 .
For year-to-date (YTD)
results analysis
Net
sales (including other operating income) of Garware Technical Fibres has
increased 24.78% to Rs 524.96 crore.
Sales of Synthetic Cordage segment has gone up 23.71% to Rs 442.72 crore
(accounting for 82.47% of total sales).
Sales of Fiber and Industrial Products & Projects segment has gone
up 35.16% to Rs 94.08 crore (accounting for 17.53% of total sales). Inter-segment sales rose Rs 6.75 crore to Rs
11.85 crore.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 23.27% to Rs
99.20 crore. PBIT of Synthetic Cordage
segment rose 20.90% to Rs 86.56 crore (accounting for 87.26% of total
PBIT). PBIT of Fiber and Industrial
Products & Projects segment rose 42.34% to Rs 12.64 crore (accounting for
12.74% of total PBIT).
PBIT
margin of Synthetic Cordage segment fell from 20.01% to 19.55%. PBIT margin of Fiber and Industrial Products
& Projects segment rose from 12.76% to 13.44%. Overall PBIT margin fell from 18.83% to
18.48%.
Operating
profit margin has jumped from 17.88% to 17.90%, leading to 24.90% rise in
operating profit to Rs 93.95 crore. Raw
material cost as a % of total sales (net of stock adjustments) increased from
21.29% to 31.29%. Purchase of finished
goods cost rose from 2.88% to 3.26%.
Employee cost decreased from 18.14% to 12.95%. Other expenses fell from 39.85% to
36.18%.
Other
income fell 19.44% to Rs 15.91 crore.
PBIDT rose 15.68% to Rs 109.86 crore.
Provision
for interest rose 7.25% to Rs 5.03 crore.
PBDT rose 16.12% to Rs 104.83 crore.
Provision for depreciation rose 6.38% to Rs 10.67 crore. Profit before tax grew 17.33% to Rs 94.16
crore. Share of profit/loss were nil in
both the periods. Provision for tax was
expense of Rs 21.33 crore, compared to Rs 18.22 crore. Effective tax rate was 22.65% compared to
22.70%. Net profit attributable to owners of the company increased 17.41% to Rs
72.83 crore.
Management Comments:
Mr.
Vayu Garware, CMD,Garware Technical Fibres Ltd. said, "We continued to
move ahead on our growth trajectory in the quarter led by robust demand in
International business and uptick in the International sports sector. Year on
year growth is not comparable due to a spillover effect in Q2 last year from
significant pending international orders that were delivered in Q2 due to the
first extended March 20 lockdown. On an HI basis, we are able to see growth in
PBT of 17.3% compared to HI FY21 and growth in PBT of 21.4%from Q2 FY20.
Q2
F22 has seen many challenges. Significant inflation in raw materials and
commodities have taken place. We have been able to pass on a majority of these
albeit with some months lag. However, another major hurdle has been the global
supply chain disruption, which has led to an unprecedented increase in freight
costs, which has affected our margins in export. In addition, the cycle time to
dispatch goods to customers in many parts of the world has significantly
increased due to non-availability of containers despite having the materials
ready. This has resulted in an increase in inventory and corresponding
reduction in sales and cash flows in Q2. The challenges of high input costs,
global supply chain disruption and delays in international deliveries are
continuing, however we are able to see that the situation is improving now. We
confident that we would be able to deliver strong results in the later part of
FY22.We have also seen a strong order in-flow during this quarter to support
this expectation.
In
these challenging Covid-19 pandemic times, the safety of our work force and
support to our communities continue to be our priorities, along with delivering
the business results. Our team has been working hard on these initiatives and
we are all thankful that we have been able to maintain normal operations
without any significant incidents.
The stock
trades at Rs 3534.
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Garware Technical Fibres : Consolidated Results
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Particulars
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2109
(03)
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2009
(03)
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Var.(%)
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2109
(06)
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2009
(06)
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Var.(%)
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2103
(12)
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2003
(12)
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Var.(%)
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Net Sales
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281.83
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268.33
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5
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524.96
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420.72
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25
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1,034.57
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953.09
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9
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OPM (%)
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18.1
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21.4
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17.9
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17.9
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19.8
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18.6
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OP
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51.01
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57.33
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-11
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93.94
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75.22
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25
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204.37
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177.5
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15
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Other Inc.
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9.89
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8.24
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20
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15.91
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19.75
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-19
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34.67
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32.19
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8
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PBIDT
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60.89
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65.57
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-7
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109.85
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94.97
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16
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239.04
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209.69
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14
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Interest
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2.67
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2.81
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-5
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5.03
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4.69
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7
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10.32
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11.57
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-11
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PBDT
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58.23
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62.76
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-7
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104.82
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90.28
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16
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228.72
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198.12
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15
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Depreciation
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5.40
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5.08
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6
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10.67
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10.03
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6
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20.65
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19.26
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7
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PBT
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52.82
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57.69
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-8
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94.16
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80.25
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17
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208.07
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178.86
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16
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Taxation
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11.93
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13.34
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-11
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21.33
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18.22
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17
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49.67
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38.33
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30
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PAT
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40.89
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44.35
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-8
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72.83
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62.03
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17
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158.4
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140.53
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13
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Minority Interest (MI)
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0.00
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0.00
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0.00
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0.00
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0
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0
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-
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Net profit
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40.89
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44.35
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-8
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72.83
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62.03
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17
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158.4
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140.53
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13
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EPS (Rs)*
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#
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#
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#
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#
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76.8
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68.2
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Notes
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* EPS is on current equity of Rs 20.62 crore, Face value of Rs
10, Excluding extraordinary items.
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# EPS is not annualised
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bps : Basis points
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Figures in Rs crore
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Source: Capitaline Corporate Database
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Garware Technical Fibres : Consolidated Segment Results
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% of (Total)
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2109
(03)
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2009
(03)
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Var.(%)
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% of (Total)
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2109
(06)
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2009
(06)
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Var.(%)
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% of (Total)
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2103
(12)
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2003
(12)
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Var.(%)
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Sales
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Synthetic Cordage
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87
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249.75
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233.96
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7
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82
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442.72
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357.86
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24
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83
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878.46
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796.28
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10
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Fiber and Industrial Products & Projects
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13
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38.48
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39.58
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-3
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18
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94.08
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69.61
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35
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17
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174.15
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174.95
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0
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Total Reported Sales
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100
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288.23
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273.54
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5
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100
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536.8
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427.47
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26
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100
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1,052.61
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971.23
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8
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Less: Inter segment revenues
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6.4
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5.21
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23
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11.85
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6.75
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76
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18.04
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18.14
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-1
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Net Sales
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281.83
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268.33
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5
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524.96
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420.72
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25
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1,034.57
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953.09
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9
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PBIT
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Synthetic Cordage
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90.38
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48.39
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53.5
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-10
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87
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86.56
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71.6
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21
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88
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188.95
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162.9
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16
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Fiber and Industrial Products & Projects
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9.62
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5.15
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6.27
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-18
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13
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12.64
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8.88
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42
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12
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25.85
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23.9
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8
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Total PBIT
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100
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53.53
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59.77
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-10
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100
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99.2
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80.48
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23
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100
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214.8
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186.8
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15
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Less : Interest
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2.67
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2.81
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-5
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5.03
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4.69
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7
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10.32
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11.57
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-11
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Add: Other un-allcoable
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1.96
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0.72
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172
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-0.02
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4.46
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PL
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3.59
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3.63
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-1
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PBT
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52.82
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57.69
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-8
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94.16
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80.25
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17
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208.07
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178.86
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16
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Previous News |
Garware Technical Fibres revises record date for buyback of shares
(
Market Beat
-
Reports
20-Feb-24
15:29
)
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Garware Technical Fibres fixes record date for Buyback of Shares
(
Market Beat
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Reports
22-Oct-22
11:49
)
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Garware Technical Fibres consolidated net profit rises 16.83% in the September 2022 quarter
(
Results
-
Announcements
22-Oct-22
08:02
)
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Garware Technical Fibres
(
Results
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Analysis
07-Nov-23
08:28
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Garware Technical Fibres to acquire 26% stake in TP Bhaskar Renewables
(
Corporate News
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18-Mar-23
12:03
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Volumes jump at Garware Technical Fibres Ltd counter
(
Hot Pursuit
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09-Mar-22
11:00
)
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Garware Technical Fibres consolidated net profit rises 49.05% in the December 2020 quarter
(
Results
-
Announcements
11-Feb-21
16:03
)
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Garware Technical Fibres consolidated net profit declines 4.09% in the September 2020 quarter
(
Results
-
Announcements
04-Nov-20
15:26
)
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Board of Garware Technical Fibres approves buyback of shares
(
Corporate News
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23-Nov-20
18:37
)
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Garware Technical Fibres consolidated net profit declines 11.80% in the December 2021 quarter
(
Results
-
Announcements
14-Feb-22
08:21
)
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Garware Technical Fibres
(
Results
-
Analysis
04-Nov-20
18:50
)
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