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Results
09-Feb-23
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Analysis
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Garware Technical Fibres
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Recessionary pressures in Europe and USA impacted performance
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Garware
Technical Fibres consolidated net sales declined 10.89% to Rs 274.58 crore in
Q3FY23 compared to Q3FY22. Sales of
Synthetic Cordage segment has gone down 13.44% to Rs 239.98 crore (accounting
for 85.93% of total sales). Sales of
Fiber and Industrial Products & Projects segment has gone up 4.03% to Rs
39.30 crore (accounting for 14.07% of total sales). Inter-segment sales came down from Rs 6.87
crore to Rs 4.70 crore.
Profit
before interest, tax and other unallocable items (PBIT) has slumped 10.16% to
Rs 53.05 crore. PBIT of Synthetic
Cordage segment fell 12.93% to Rs 48.58 crore (accounting for 91.57% of total
PBIT). PBIT of Fiber and Industrial
Products & Projects segment rose 37.23% to Rs 4.47 crore (accounting for
8.43% of total PBIT).
PBIT
margin of Synthetic Cordage segment rose from 20.12% to 20.24%. PBIT margin of Fiber and Industrial Products
& Projects segment rose from 8.63% to 11.38%. Overall PBIT margin rose from 18.75% to
19.00%.
Operating
profit margin has declined from 18.04% to 17.17%, leading to 15.20% decline in
operating profit to Rs 47.14 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
29.07% to 26.82%. Purchase of finished
goods cost rose from 1.57% to 1.60%.
Employee cost increased from 12.88% to 14.32%. Other expenses rose from 38.49% to
40.15%.
Other
income rose 62.99% to Rs 7.84 crore.
PBIDT fell 8.97% to Rs 54.98 crore.
Provision for interest fell 30.96% to Rs 2.81 crore.
PBDT
fell 7.39% to Rs 52.17 crore. Provision
for depreciation rose 2.76% to Rs 5.58 crore.
Profit
before tax down 8.47% to Rs 46.59 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 10.02
crore, compared to Rs 12.84 crore.
Effective tax rate was 21.51% compared to 25.23%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company decreased 3.91% to Rs
36.57 crore.
Promoters’
stake was 52.70% as of 31 December 2022 ,compared to 52.62% as of 31 December
2021.
In a statement, Mr. Vayu
Garware, CMD, Garware Technical Fibres Ltd. said, "The current quarter results
have been impacted due to delay in orders from our customers in the industrial
and sports businesses on account of recessionary pressures in Europe and USA.
We saw customers adjusting stocks in Q3 significantly. We expect this to be
short term in nature and will get corrected from Qi FY24. There was an offset
to some extent by strong order flow from Chile and Scotland Aquaculture
business, focused on our new innovative products like X18 and CFR, from major
customers there. These products are allowing customers to benefit from
operational savings which would otherwise be difficult. We have been able to
maintain margins during the current quarter and expect that to continue. We
look forward to a better fourth quarter with current visibility.
For year-to-date (YTD)
results analysis
Net
sales (including other operating income) of Garware Technical Fibres has
increased 12.24% to Rs 935.06 crore.
Sales of Synthetic Cordage segment has gone up 10.63% to Rs 796.48 crore
(accounting for 83.95% of total sales).
Sales of Fiber and Industrial Products & Projects segment has gone
up 15.52% to Rs 152.33 crore (accounting for 16.05% of total sales). Inter-segment sales came down from Rs 18.72
crore to Rs 13.74 crore.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 1.99% to Rs
161.40 crore. PBIT of Synthetic Cordage
segment rose 1.09% to Rs 143.90 crore (accounting for 89.16% of total PBIT). PBIT of Fiber and Industrial Products &
Projects segment rose 10.04% to Rs 17.50 crore (accounting for 10.84% of total
PBIT).
PBIT
margin of Synthetic Cordage segment fell from 19.77% to 18.07%. PBIT margin of Fiber and Industrial Products
& Projects segment fell from 12.06% to 11.49%. Overall PBIT margin fell from 18.58% to
17.01%.
Operating
profit margin has declined from 17.95% to 16.02%, leading to 0.20% rise in
operating profit to Rs 149.83 crore. Raw
material cost as a % of total sales (net of stock adjustments) decreased from
30.52% to 29.31%. Purchase of finished
goods cost rose from 2.67% to 2.98%.
Employee cost increased from 12.93% to 13.24%. Other expenses rose from 36.99% to
38.59%.
Other
income fell 3.19% to Rs 20.06 crore.
PBIDT fell 0.21% to Rs 169.89 crore.
Provision for interest fell 4.29% to Rs 8.71 crore.
PBDT
rose 0.02% to Rs 161.18 crore. Provision
for depreciation rose 2.24% to Rs 16.46 crore.
Profit
before tax down 0.23% to Rs 144.72 crore.
Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 32.19
crore, compared to Rs 34.16 crore.
Effective tax rate was 22.24% compared to 23.55%.
Minority
interest was nil in both the periods.
Net profit attributable to owners of the company increased 1.48% to Rs
112.53 crore.
Promoters’
stake was 52.70% as of 31 December 2022 ,compared to 52.62% as of 31 December
2021.
The stock
trades at Rs 3108
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Garware Technical Fibres :
Consolidated Results
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Particulars
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2212
(03)
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2112
(03)
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Var.(%)
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2212
(09)
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2112
(09)
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Var.(%)
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2203
(12)
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2103
(12)
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Var.(%)
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Net Sales
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274.58
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308.13
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-11
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935.06
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833.09
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12
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1,189.40
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1034.57
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15
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OPM (%)
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17.2
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18.0
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16.0
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17.9
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18.7
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19.8
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OP
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47.14
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55.59
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-15
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149.83
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149.53
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0
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222.9
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204.37
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9
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Other Inc.
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7.84
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4.81
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63
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20.06
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20.72
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-3
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25.54
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34.67
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-26
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PBIDT
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54.98
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60.40
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-9
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169.89
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170.25
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0
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248.44
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239.04
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4
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Interest
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2.81
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4.07
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-31
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8.71
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9.10
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-4
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10.57
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10.32
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2
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PBDT
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52.17
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56.33
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-7
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161.18
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161.15
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0
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237.87
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228.72
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4
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Depreciation
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5.58
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5.43
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3
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16.46
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16.10
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2
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21.46
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20.65
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4
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PBT
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46.59
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50.90
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-8
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144.72
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145.05
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0
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216.41
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208.07
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4
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Taxation
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10.02
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12.84
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-22
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32.19
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34.16
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-6
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51.63
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49.67
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4
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PAT
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36.57
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38.06
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-4
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112.53
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110.89
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1
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164.78
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158.40
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4
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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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Net profit
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36.57
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38.06
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-4
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112.53
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110.89
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1
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164.78
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158.40
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4
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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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79.9
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76.8
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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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2212
(03)
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2112
(03)
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Var.(%)
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% of (Total)
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2212
(09)
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2112
(09)
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Var.(%)
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% of (Total)
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2203
(12)
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2103
(12)
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Var.(%)
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Sales
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Synthetic Cordage
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86
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239.98
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277.22
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-13
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84
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796.48
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719.95
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11
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85
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1,030.32
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878.46
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17
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Fiber and Industrial Products & Projects
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14
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39.30
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37.78
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4
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16
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152.33
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131.86
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16
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15
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184.2
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174.15
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6
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Total Reported Sales
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100
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279.28
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315.00
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-11
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100
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948.81
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851.81
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11
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100
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1,214.52
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1,052.61
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15
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Less: Inter segment revenues
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4.70
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6.87
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-32
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13.74
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18.72
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-27
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25.12
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18.04
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39
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Net Sales
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274.58
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308.13
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-11
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935.07
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833.09
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12
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1,189.40
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1,034.57
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15
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PBIT
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Synthetic Cordage
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92
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48.58
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55.79
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-13
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89
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143.90
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142.35
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1
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91
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213.56
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188.95
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13
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Fiber and Industrial Products & Projects
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8
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4.47
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3.26
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37
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11
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17.50
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15.90
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10
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9
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22.13
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25.85
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-14
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Total PBIT
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100
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53.05
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59.05
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-10
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100
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161.40
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158.25
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2
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100
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235.69
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214.8
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10
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Less : Interest
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2.81
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4.07
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-31
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8.71
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9.10
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-4
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10.57
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10.32
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2
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Add: Other un-allcoable
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-3.65
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-4.08
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-11
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-7.96
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-4.10
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999
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-8.7
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3.59
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PL
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PBT
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46.59
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50.90
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-8
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144.73
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145.05
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0
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216.41
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208.07
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4
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Previous News |
Garware Technical Fibres
(
Results
-
Analysis
14-Feb-22
10:16
)
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Garware Technical Fibres consolidated net profit declines 7.80% in the September 2021 quarter
(
Results
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Announcements
13-Nov-21
09:29
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(
Results
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Analysis
07-Nov-23
08:28
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Garware Wall Ropes
(
Results
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11-Aug-16
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(
Results
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Analysis
27-May-21
20:05
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Garware Technical Fibres schedules board meeting
(
Corporate News
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19:09
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Garware-Wall Ropes standalone net profit rises 20.70% in the June 2018 quarter
(
Results
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14-Aug-18
12:40
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Garware Technical Fibres consolidated net profit rises 10.73% in the March 2023 quarter
(
Results
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Announcements
23-May-23
07:55
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Garware Technical Fibres announces board meeting date
(
Corporate News
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23-Jan-24
10:45
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Garware Technical Fibres consolidated net profit rises 49.08% in the March 2021 quarter
(
Results
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Announcements
27-May-21
15:41
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Garware-Wall Ropes to hold board meeting
(
Corporate News
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19-May-16
13:58
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