Other income fell 25.13% to Rs 5.69 crore. Provision for interest fell 13.59% to Rs 2.48 crore. Provision for depreciation rose 4.90% to Rs 5.35 crore. Profit before tax grew 25.61% to Rs 68.81 crore. Provision for tax was expense of Rs 15.59 crore compared to Rs 19.08 crore. Effective tax rate was 22.66% compared to 34.83%. Net profit attributable to owners of the company increased 49.08% to Rs 53.22 crore.

Performance for the year ended March 2021 

Net sales (including other operating income) of Garware Technical Fibres has increased 8.55% to Rs 1034.57 crore. Operating profit margin has jumped from 18.62% to 19.75%, leading to 15.14% rise in operating profit to Rs 204.37 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 26.78% to 24.83%. Purchase of finished goods cost fell from 3.63% to 2.98%. Employee cost increased from 14.09% to 14.93%. Other expenses rose from 37.17% to 37.28%.  

Other income rose 7.70% to Rs 34.67 crore. Provision for interest fell 10.80% to Rs 10.32 crore. Loan funds declined from Rs 132.54 crore as of 31 March 2020 to Rs 101.81 crore as of 31 March 2021. Inventories declined from Rs 191.66 crore as of 31 March 2020 to Rs 190.42 crore as of 31 March 2021. Sundry debtors were higher at Rs 241.78 crore as of 31 March 2021 compared to Rs 235.25 crore as of 31 March 2020. Cash and bank balance rose to Rs 57.40 crore as of 31 March 2021 from Rs 33.65 crore as of 31 March 2020. Investments rose to Rs 466.93 crore as of 31 March 2021 from Rs 376.00 crore as of 31 March 2020 .

 Provision for depreciation rose 7.22% to Rs 20.65 crore. Fixed assets increased to Rs 242.36 crore as of 31 March 2021 from Rs 239.59 crore as of 31 March 2020. Intangible assets declined from Rs 4.90 crore to Rs 4.76 crore.  

Profit before tax grew 16.33% to Rs 208.07 crore. Provision for tax was expense of Rs 49.67 crore, compared to Rs 38.33 crore. Effective tax rate was 23.87% compared to 21.43%. 

Net profit attributable to owners of the company increased 12.72% to Rs 158.40 crore.  

Promoters' stake was 52.62% as of 31 March 2021 ,compared to 50.71% as of 31 March 2020 .  

Cash flow from operating activities increased to Rs 230.08 crore for year ended March 2021 from Rs 109.54 crore for year ended March 2020. Cash flow used in acquiring fixed assets during the year ended March 2021 stood at Rs 23.55 crore, compared to Rs 38.09 crore during the year ended March 2020.

Management Comments: 

Mr. Vayu Garware, CMD,Garware Technical Fibres Ltd. said, "Despite the challenges posed by the Covid-19 pandemic in FY21, especially in the first quarter of the financial year, our team worked with dedication and drive to deliver a robust performance for the year crossing a significant milestone of Rs. 200 crore Profit Before Tax and Rs. 150 crore Profit After Tax. I must also thank all of our customers in India and around the world for maintaining their faith and trust in us and our solutions. In Q4, we were able to deliver 33% growth in sales and almost 50% increase in PAT. The international business demand for our solutions remains strong and our execution team was able to meet customer expectations despite the initial challenges in QIFY21. The domestic market also recovered well and our team was able to deliver a robust growth. Sustained focus on fund generation from operations has also been one of the highlights of F21 performance". 

The Board of Directors has recommended a Dividend of Rs 2.50/- per share (25%) of Rs. 10/- each for approval by the Members of the Company at ensuing Annual General Meeting.

The Board of Directors, at its meeting held on Friday, November 27, 2020, had approved the proposal of buyback upto 3,11.,391 fully paid-up equity shares representing 1.52% of the equity Shares in the existing total equity paid-up 'capital of the company, from all eligible shareholders on a proportionate basis, through the 'Tender Offer' process, at a price of Rs 2,300/- per equity share, payable in cash, for an aggregate maximum amount of Rs. 72,99,99,300/- excluding the transaction costs. Pursuant to the issuance of letter of Offer, tender period for buyback opened on Tuesday, January 19, 2021 and closed on Tuesday, February 2,2021. The company bought back 3,17,391 equity shares from all eligible shareholders and extinguished the same OD 12th February, 2021. 

The buyback resulted in a cash outflow of Rs. 73 crore (excluding transaction costs). The company funded the buyback from its free reserves. In accordance with Section 69 of the Companies Act, 2013, the company has created capital redemption reserve of Rs. 31.75 lakhs equal to the nominal value of the shares bought back as an appropriation from general reserve. 

The stock trades at Rs 2833.