Capitaline

Results 30-Jan-24

Analysis

Garware Technical Fibres

NP up 18%

Garware Technical Fibres consolidated net sales increased 5.39% to Rs 289.37 crore during Q3FY24 compared to Q3FY23. Sales of Synthetic segment has gone down 0.33% to Rs 239.19 crore (accounting for 80.22% of total sales). Sales of Fiber & Industrial segment has gone up 50.05% to Rs 58.96 crore (accounting for 19.78% of total sales). Inter-segment sales rose Rs 4.70 crore to Rs 8.78 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 8.82% to Rs 57.73 crore. PBIT of Synthetic segment fell 2.53% to Rs 47.35 crore (accounting for 82.02% of total PBIT). PBIT of Fiber & Industrial segment rose 132.21% to Rs 10.38 crore (accounting for 17.98% of total PBIT).

PBIT margin of Synthetic segment fell from 20.24% to 19.79%. PBIT margin of Fiber & Industrial segment rose from 11.38% to 17.61%. Overall PBIT margin rose from 19.00% to 19.36%.

Operating profit margin has jumped from 17.17% to 18.48%, leading to 13.45% rise in operating profit to Rs 53.48 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 26.82% to 28.22%. Purchase of finished goods cost rose from 1.60% to 3.03%. Employee cost increased from 14.32% to 15.70%. Other expenses fell from 40.15% to 35.27%.

Other income rose 43.11% to Rs 11.22 crore. PBIDT rose 17.68% to Rs 64.7 crore. Provision for interest rose 4.98% to Rs 2.95 crore.

PBDT rose 18.36% to Rs 61.75 crore. Provision for depreciation rose 20.79% to Rs 6.74 crore.

Profit before tax grew 18.07% to Rs 55.01 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 11.75 crore, compared to Rs 10.02 crore. Effective tax rate was 21.36% compared to 21.51%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 18.29% to Rs 43.26 crore.

Promoters’ stake was 52.70% as of 31 December 2023 compared to 52.70% as of 31 December 2022.

In a statement, Mr. Vayu Garware, CMD, Garware Technical Fibres Ltd. said, "Q3 FY 24 has shown growth of 18% over previous Q3 FY23, in-spite of the disruptions in international logistics faced toward the end of the quarter. Our Geosynthetics business has grown significantly during the quarter and continued the growth momentum of the last 2 years. Margins continued to be strong throughout the year across all businesses so far. With a strong pipeline of orders from aquaculture globally, we look forward for a good fourth quarter. This is of course subject to our ability to reach materials in time to Europe and South America due to the Red Sea challenges.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Garware Technical Fibres has increased 0.89% to Rs 943.34 crore. Sales of Synthetic Cordage segment has gone down 2.05% to Rs 780.15 crore (accounting for 80.87% of total sales). Sales of Fiber and Industrial Products & Projects segment has gone up 21.15% to Rs 184.54 crore (accounting for 19.13% of total sales). Inter-segment sales rose Rs 13.74 crore to Rs 21.35 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 19.17% to Rs 192.34 crore. PBIT of Synthetic Cordage segment rose 12.85% to Rs 162.40 crore (accounting for 84.43% of total PBIT). PBIT of Fiber and Industrial Products & Projects segment rose 71.14% to Rs 29.95 crore (accounting for 15.57% of total PBIT).

PBIT margin of Synthetic Cordage segment rose from 18.07% to 20.82%. PBIT margin of Fiber and Industrial Products & Projects segment rose from 11.49% to 16.23%. Overall PBIT margin rose from 17.01% to 19.94%.

Operating profit margin has jumped from 16.02% to 19.11%, leading to 20.32% rise in operating profit to Rs 180.27 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 29.31% to 28.59%. Purchase of finished goods cost fell from 2.98% to 2.86%. Employee cost increased from 13.24% to 14.65%. Other expenses fell from 38.59% to 35.69%.

Other income rose 52.84% to Rs 30.66 crore. PBIDT rose 24.16% to Rs 210.93 crore. Provision for interest rose 32.72% to Rs 11.56 crore.

PBDT rose 23.69% to Rs 199.37 crore. Provision for depreciation rose 16.22% to Rs 19.13 crore.

Profit before tax grew 24.54% to Rs 180.24 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 41.53 crore, compared to Rs 32.19 crore. Effective tax rate was 23.05% compared to 22.24%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 23.26% to Rs 138.71 crore.

Promoters’ stake was 52.70% as of 31 December 2023 compared to 52.70% as of 31 December 2022.

The stock trades at Rs 3661

Garware Technical Fibres : Consolidated Results
Particulars	2312 (03)	2212 (03)	Var.(%)	2312 (09)	2212 (09)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	289.37	274.58	5	943.34	935.06	1	1,305.55	1,189.40	10
OPM (%)	18.5	17.2		19.1	16.0		17.6	18.7
OP	53.48	47.14	13	180.27	149.83	20	229.54	222.9	3
Other Inc.	11.22	7.84	43	30.66	20.06	53	27.9	25.54	9
PBIDT	64.70	54.98	18	210.93	169.89	24	257.44	248.44	4
Interest	2.95	2.81	5	11.56	8.71	33	11.95	10.57	13
PBDT	61.75	52.17	18	199.37	161.18	24	245.49	237.87	3
Depreciation	6.74	5.58	21	19.13	16.46	16	22.31	21.46	4
PBT	55.01	46.59	18	180.24	144.72	25	223.18	216.41	3
Taxation	11.75	10.02	17	41.53	32.19	29	50.98	51.63	-1
PAT	43.26	36.57	18	138.71	112.53	23	172.20	164.78	5
Minority Interest (MI)	0.00	0.00		0.00	0.00		0	0
Net profit	43.26	36.57	18	138.71	112.53	23	172.20	164.78	5
EPS (Rs)*	#	#		#	#		84.5	80.9
Notes
* EPS is on current equity of Rs 20.38 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)	2312 (03)	2212 (03)	Var.(%)	% of (Total)	2312 (09)	2212 (09)	Var.(%)	% of (Total)	2303 (12)	2203 (12)	Var.(%)
Sales
Synthetic Cordage	80	239.19	239.98	0	81	780.15	796.48	-2	83	1,103.87	1,030.32	7
Fiber and Industrial Products & Projects	20	58.96	39.3	50	19	184.54	152.33	21	17	222.14	184.2	21
Total Reported Sales	100	298.15	279.28	7	100	964.69	948.81	2	100	1,326.01	1,214.52	9
Less: Inter segment revenues		8.78	4.7	87		21.35	13.74	55		20.46	25.12	-19
Net Sales		289.37	274.58	5		943.34	935.07	1		1,305.55	1,189.40	10
PBIT
Synthetic Cordage	82	47.35	48.58	-3	84	162.4	143.9	13	89	219.09	213.56	3
Fiber and Industrial Products & Projects	18	10.38	4.47	132	16	29.95	17.5	71	11	26.4	22.13	19
Total PBIT	100	57.73	53.05	9	100	192.35	161.40	19	100	245.49	235.69	4
Less : Interest		2.95	2.81	5		11.56	8.71	33		11.95	10.57	13
Add: Other un-allcoable		0.23	-3.65	-106		-0.55	-7.96	-93		-10.36	-8.7	19
PBT		55.01	46.59	18		180.24	144.73	25		223.18	216.41	3

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