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Results
11-Aug-21
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Analysis
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Garware Technical Fibres
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Expect improvement in domestic markets in Q2FY22
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Garware
Technical Fibres consolidated net sales increased 59.54% to Rs 243.13 crore in
Q1FY22 compared to Q1FY21. Sales of
Synthetic Cordage segment has gone up 55.74% to Rs 192.97 crore (accounting for
77.63% of total sales). Sales of Fiber
and Industrial Products & Projects segment has gone up 85.18% to Rs 55.61
crore (accounting for 22.37% of total sales).
Inter-segment sales rose Rs 1.54 crore to Rs 5.45 crore.
Operating
profit margin has jumped from 11.74% to 17.66%, leading to 140.02% rise in operating
profit to Rs 42.94 crore. Raw material cost as a % of total sales (net of stock
adjustments) increased from 19.34% to 31.37%.Purchase of finished goods cost rose
from 3.46% to 3.94%. Employee cost decreased from 23.42% to 13.67%. Other
expenses fell from 41.93% to 35.67%.
Other
income fell 47.70% to Rs 6.02 crore.
Profit before interest, tax and other unallocable items (PBIT) has
jumped 120.54% to Rs 45.66 crore. PBIT
of Synthetic Cordage segment rose 110.93% to Rs 38.17 crore (accounting for
83.59% of total PBIT). PBIT of Fiber and
Industrial Products & Projects segment rose 187.22% to Rs 7.49 crore
(accounting for 16.41% of total PBIT).
PBIT
margin of Synthetic Cordage segment rose from 14.61% to 19.78%. PBIT margin of Fiber and Industrial Products
& Projects segment rose from 8.69% to 13.48%. Overall PBIT margin rose from 13.45% to
18.37%.
Provision
for interest rose 25.53% to Rs 2.36 crore.
Provision for depreciation rose 6.05% to Rs 5.26 crore.
Profit
before tax grew 83.24% to Rs 41.34 crore.
Provision for tax was expense of Rs 9.4 crore, compared to Rs 4.88
crore. Effective tax rate was 22.74%
compared to 21.63%.
Net
profit attributable to owners of the company increased 80.66% to Rs 31.94
crore.
Promoters’
stake was 52.62% as of 30 June 2021 ,compared to 50.71% as of 30 June 2020
.
Full year results
analysis
Net
sales (including other operating income) of Garware Technical Fibres has
increased 8.55% to Rs 1034.57 crore.
Sales of Synthetic Cordage segment has gone up 10.32% to Rs 878.46 crore
(accounting for 83.46% of total sales).
Sales of Fiber and Industrial Products & Projects segment has gone
down 0.46% to Rs 174.15 crore (accounting for 16.54% of total sales). Inter-segment sales came down from Rs 18.14
crore to Rs 18.04 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.Profit before interest, tax and other
unallocable items (PBIT) has jumped 14.99% to Rs 214.80 crore. PBIT of Synthetic Cordage segment rose 15.99%
to Rs 188.95 crore (accounting for 87.97% of total PBIT). PBIT of Fiber and Industrial Products &
Projects segment rose 8.15% to Rs 25.85 crore (accounting for 12.03% of total
PBIT).
PBIT
margin of Synthetic Cordage segment rose from 20.46% to 21.51%. PBIT margin of
Fiber and Industrial Products & Projects segment rose from 13.66% to
14.84%. Overall PBIT margin rose from 19.23% to 20.41%.
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.
Equity
capital decreased from Rs 21.88 crore as of 31 March 2020 to Rs 20.62 crore as
of 31 March 2021
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, "Lockdowns in April
and May, 21 due to the resurgence of second wave of Covid-19 across India had
an impact on our domestic business. Despite that, domestic business doubled its
sales and delivered a good performance over the lower base of previous year. In
Q2FY22, we expect an improvement in momentum in the Domestic markets as things
are getting back to normal. International Business, which had seen some
continuity of business in the first quarter of last year, registered strong
double digit revenue growth in this quarter. Our customers` sustained faith in
our products and services helped us in the growth momentum.
Of
course, our focus continues to be on safety of our team members and their
families. Apart from the strict implementation of safety protocols and ensuring
Covid-io appropriate behavior, we have been able to now complete the first
round of vaccinations for almost all employees and hope this will help to
counteract any future negative surprises from Covid-19.
The stock
trades at Rs 3251.
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Garware Technical Fibres : Consolidated Results
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Particulars
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2106
(03)
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2006
(03)
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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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243.13
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152.39
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33
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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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17.7
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11.7
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19.8
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18.6
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OP
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42.94
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17.89
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29
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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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6.02
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11.51
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-25
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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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48.96
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29.4
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22
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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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2.36
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1.88
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-14
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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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46.6
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27.52
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24
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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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5.26
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4.96
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5
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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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41.34
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22.56
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26
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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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9.4
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4.88
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-18
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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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31.94
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17.68
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49
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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
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0
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-
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0
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0
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-
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Net profit
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31.94
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17.68
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49
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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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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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2106 (03)
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2006
(03)
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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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78
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192.97
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123.9
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56
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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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22
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55.61
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30.03
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85
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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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248.58
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153.93
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61
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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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5.45
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1.54
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254
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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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243.13
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152.39
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60
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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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84
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38.17
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18.1
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111
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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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16
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7.49
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2.61
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187
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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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45.66
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20.71
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121
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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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2.36
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1.88
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25
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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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-1.97
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3.74
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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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41.33
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22.56
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83
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208.07
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178.86
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16
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Previous News |
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(
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16:22
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(
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(
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