Capitaline

Results 07-Nov-23

Analysis

Garware Technical Fibres

OP up 10%

Consolidated net sales of Garware Technical Fibres have declined 7.78% to Rs 328.3 crore. Sales of Synthetic segment has gone down 7.87% to Rs 281.44 crore (accounting for 84.51% of total sales). Sales of Fiber & Industrial segment has gone down 5.03% to Rs 51.57 crore (accounting for 15.49% of total sales). Inter-segment sales rose Rs 3.79 crore to Rs 4.71 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 12.57% to Rs 72.61 crore. PBIT of Synthetic segment rose 12.19% to Rs 63.31 crore (accounting for 87.19% of total PBIT). PBIT of Fiber & Industrial segment rose 15.25% to Rs 9.30 crore (accounting for 12.81% of total PBIT).

PBIT margin of Synthetic segment rose from 18.47% to 22.49%. PBIT margin of Fiber & Industrial segment rose from 14.86% to 18.04%. Overall PBIT margin rose from 17.93% to 21.80%.

Operating profit margin has jumped from 17.43% to 20.88%, leading to 10.47% rise in operating profit to Rs 68.56 crore. Raw material cost as a % of total sales (net of stock adjustments) increased from 27.36% to 27.62%. Purchase of finished goods cost fell from 2.80% to 2.16%. Employee cost increased from 12.55% to 14.55%. Other expenses fell from 38.85% to 35.22%.

Other income rose 34.04% to Rs 10.08 crore. PBIDT rose 13.02% to Rs 78.64 crore. Provision for interest rose 37.01% to Rs 4.22 crore.

PBDT rose 11.91% to Rs 74.42 crore. Provision for depreciation rose 14.57% to Rs 6.29 crore.

Profit before tax grew 11.67% to Rs 68.13 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 15.65 crore, compared to Rs 13.24 crore. Effective tax rate was 23.00% compared to 21.70%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 9.86% to Rs 52.48 crore.

Equity capital decreased from Rs 20.62 crore as of 30 September 2022 to Rs 20.38 crore as of 30 September 2023. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 52.70% as of 30 September 2023 ,compared to 52.62% as of 30 September 2022.

In a statement, Mr. VaYLl Garware, CMD,Garware Technical Fibres Ltd. said, "H1 FY 24 has shown a strong recovery in margins with PBT of 19%, which we expect to maintain going forward. Profit before tax grew by 28% in H1 FY24 over previous year H1. This good performance has been driven by improved product mix and growth in new products in the global aquaculture segment as well as improvement in our domestic businesses compared to H1 last year. Geosynthetics business continued its strong growth momentum both on topline and profits. Free Cash Flow from operations has also improved significantly over previous year H1. Topline during second quarter was largely impacted due to the pass through of lower raw material and international logistics costs against earlier periods.

We hope to continue our profit growth in FY24 vs FY23 in the second half.

For year-to-date (YTD) results analysis

Net sales (including other operating income) of Garware Technical Fibres has declined 0.99% to Rs 653.97 crore. Sales of Synthetic Cordage segment has gone down 2.79% to Rs 540.96 crore (accounting for 81.16% of total sales). Sales of Fiber and Industrial Products & Projects segment has gone up 11.10% to Rs 125.58 crore (accounting for 18.84% of total sales). Inter-segment sales rose Rs 9.05 crore to Rs 12.57 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 24.24% to Rs 134.61 crore. PBIT of Synthetic Cordage segment rose 20.70% to Rs 115.05 crore (accounting for 85.47% of total PBIT). PBIT of Fiber and Industrial Products & Projects segment rose 50.18% to Rs 19.56 crore (accounting for 14.53% of total PBIT).

PBIT margin of Synthetic Cordage segment rose from 17.13% to 21.27%. PBIT margin of Fiber and Industrial Products & Projects segment rose from 11.53% to 15.58%. Overall PBIT margin rose from 16.18% to 20.20%.

Operating profit margin has jumped from 15.55% to 19.39%, leading to 23.46% rise in operating profit to Rs 126.78 crore. Raw material cost as a % of total sales (net of stock adjustments) decreased from 30.34% to 28.75%. Purchase of finished goods cost fell from 3.55% to 2.79%. Employee cost increased from 12.79% to 14.19%. Other expenses fell from 37.94% to 35.87%.

Other income rose 59.08% to Rs 19.44 crore. PBIDT rose 27.25% to Rs 146.22 crore. Provision for interest rose 45.93% to Rs 8.61 crore. Loan funds rose to Rs 116.16 crore as of 30 September 2023 from Rs 98.32 crore as of 30 September 2022. Inventories rose to Rs 277.92 crore as of 30 September 2023 from Rs 270.48 crore as of 30 September 2022. Sundry debtors were lower at Rs 213.21 crore as of 30 September 2023 compared to Rs 274.14 crore as of 30 September 2022. Cash and bank balance declined from Rs 36.52 crore as of 30 September 2022 to Rs 33.73 crore as of 30 September 2023. Investments rose to Rs 663.95 crore as of 30 September 2023 from Rs 510.10 crore as of 30 September 2022 .

PBDT rose 26.24% to Rs 137.61 crore. Provision for depreciation rose 13.88% to Rs 12.39 crore. Fixed assets increased to Rs 249.31 crore as of 30 September 2023 from Rs 236.37 crore as of 30 September 2022. Intangible assets declined from Rs 3.82 crore to Rs 3.30 crore.

Profit before tax grew 27.61% to Rs 125.22 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 29.78 crore, compared to Rs 22.17 crore. Effective tax rate was 23.80% compared to 22.59%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 25.65% to Rs 95.44 crore.

Equity capital decreased from Rs 20.62 crore as of 30 September 2022 to Rs 20.38 crore as of 30 September 2023. Per share face Value remained same at Rs 10.00.

Promoters’ stake was 52.70% as of 30 September 2023 ,compared to 52.62% as of 30 September 2022 .

The stock trades at Rs 3165

Garware Technical Fibres : Consolidated Results
Particulars	2309 (03)	2209 (03)	Var.(%)	2309 (06)	2209 (06)	Var.(%)	2303 (12)	2203 (12)	Var.(%)
Net Sales	328.30	355.98	-8	653.97	660.48	-1	1,305.55	1,189.40	10
OPM (%)	20.9	17.4		19.4	15.5		17.6	18.7
OP	68.56	62.06	10	126.78	102.69	23	229.54	222.9	3
Other Inc.	10.08	7.52	34	19.44	12.22	59	27.9	25.54	9
PBIDT	78.64	69.58	13	146.22	114.91	27	257.44	248.44	4
Interest	4.22	3.08	37	8.61	5.90	46	11.95	10.57	13
PBDT	74.42	66.50	12	137.61	109.01	26	245.49	237.87	3
Depreciation	6.29	5.49	15	12.39	10.88	14	22.31	21.46	4
PBT	68.13	61.01	12	125.22	98.13	28	223.18	216.41	3
Taxation	15.65	13.24	18	29.78	22.17	34	50.98	51.63	-1
PAT	52.48	47.77	10	95.44	75.96	26	172.20	164.78	5
Minority Interest (MI)	0.00	0.00		0.00	0.00		0	0
Net profit	52.48	47.77	10	95.44	75.96	26	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)	2309 (03)	2209 (03)	Var.(%)	% of (Total)	2309 (06)	2209 (06)	Var.(%)	% of (Total)	2303 (12)	2203 (12)	Var.(%)
Sales
Synthetic Cordage	85	281.44	305.47	-8	81	540.96	556.50	-3	83	1,103.87	1,030.32	7
Fiber and Industrial Products & Projects	15	51.57	54.30	-5	19	125.58	113.03	11	17	222.14	184.2	21
Total Reported Sales	100	333.01	359.77	-7	100	666.54	669.53	0	100	1,326.01	1,214.52	9
Less: Inter segment revenues		4.71	3.79	24		12.57	9.05	39		20.46	25.12	-19
Net Sales		328.30	355.98	-8		653.97	660.48	-1		1,305.55	1,189.40	10
PBIT
Synthetic Cordage	87	63.31	56.43	12	85	115.05	95.32	21	89	219.09	213.56	3
Fiber and Industrial Products & Projects	13	9.30	8.07	15	15	19.56	13.03	50	11	26.4	22.13	19
Total PBIT	100	72.61	64.50	13	100	134.61	108.35	24	100	245.49	235.69	4
Less : Interest		4.22	3.08	37		8.61	5.90	46		11.95	10.57	13
Add: Other un-allcoable		-0.26	-0.41	-37		-0.78	-4.32	-82		-10.36	-8.7	19
PBT		68.13	61.01	12		125.22	98.13	28		223.18	216.41	3

Previous News

Garware Technical Fibres to convene board meeting
( Corporate News - 05-Aug-21 12:43 )

Garware Technical Fibres
( Results - Analysis 23-May-23 08:06 )

Board of Garware Technical Fibres approves buyback of shares
( Corporate News - 23-Nov-20 18:37 )

Garware-Wall Ropes consolidated net profit rises 13.65% in the March 2017 quarter
( Results - Announcements 25-May-17 12:59 )

Garware Technical Fibres
( Results - Analysis 12-Feb-21 09:41 )

Volumes jump at SBI Cards & Payment Services Ltd counter
( Hot Pursuit - 17-Mar-21 11:00 )

Garware Technical Fibres to hold board meeting
( Corporate News - 24-Nov-20 10:24 )

Garware-Wall Ropes standalone net profit rises 15.05% in the December 2017 quarter
( Results - Announcements 14-Feb-18 17:03 )

Garware Technical Fibres schedules board meeting
( Corporate News - 07-Nov-19 16:51 )

Garware Technical Fibres
( Results - Analysis 14-Aug-18 10:37 )

Volumes soar at Garware Technical Fibres Ltd counter
( Hot Pursuit - 22-Oct-20 11:00 )