Garware Technical Fibres gains 4% on wider profits in Q4

Shares of Garware Technical Fibres Limited jumped nearly 4 percent in morning trade on May 23, a day after the company posted robust Q4 results. At 11:57 am, shares of the company were trading 3.89 percent higher at Rs 3099.90 on the NSE.

On a quarterly basis, the company’s consolidated net sales increased by 5 percent quarter on quarter (QoQ) to Rs 370.5 crore in the quarter ended March, compared to Rs 274.6 crore in Q3 FY23, and 4 percent year-on-year (YoY) compared to Rs 361.3 crore of march quarter of FY22. The consolidated net profit after tax surged by 63 percent on a QoQ basis to Rs 59.6 crore in Q4FY23, as against Rs 36.6 crore in Q3FY23. On a YoY basis, there was an 11 percent rise in net profit, as compared to the corresponding quarter of last year at Rs 53.9 crore.

On an annual basis, the net sales of the company increased by 10 percent to Rs 1305.6 crore for FY23, compared to Rs 1189.4 crore last year. Net profit after tax increased by 5 percent to Rs 172.2 crore in FY23, as against Rs 164.8 crore the previous year.

Mr. Vayu Garware, Chief Managing Director (CMD) of Garware Technical Fibres, highlighted the improved performance of the company in the current quarter, stating, “The current quarter results have shown better performance on all fronts. Operating EBITDA margins improved to 21.5 percent in Q4F23, compared to 20.6 percent in PYQ4F22, primarily due to the strong demand for new aquaculture products in Chile and Scotland.”

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Furthermore, Mr. Garware expressed his optimism about the company’s outlook for FY24, stating, “We look forward to a good FY24 with the international sports business expected to come back on track and some improvement in orders from Norway, which have been subdued due to the new resource tax imposed by the Norwegian government.”

ICICI Direct commented on Garware’s quarterly performance, noting that the company reported improved traction in revenues during the quarter and maintained a steady performance in Q4FY23. The geosynthetics business also showed good growth in both the quarter that ended in March and throughout FY23.

Looking ahead, ICICI Direct anticipates that, “The company expects better revenue traction in FY24, with the international sports business expected to come back on track and likely improvement in aquaculture orders from Norway, which have been subdued due to the new resource tax imposed by the Norwegian government. At the EBITDA margin level, the company is gradually inching back to normal levels, and the company expects the EBITDA margin trend to continue.”

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