Arrow Greentech Reports 27% Revenue Decline in Q1, Margins Improve Amid Challenges
Arrow Greentech Limited experienced a 27% quarter-on-quarter and 37% year-over-year revenue decline in Q1, with total revenue at Rs. 416.00 million. Despite this, the company saw improvements in profitability margins. EBITDA margin expanded to 34.20% from 28.00% in the previous quarter, while PAT margin improved to 25.10% from 19.30%. The Green Products segment saw a 32% decline, but the Hightech Products segment grew slightly by 3%. Management attributed the performance to global challenges including geopolitical tensions and supply chain issues. The company maintains its focus on high-tech security products and solutions aligned with the Atma Nirbhar Bharat initiative.
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Arrow Greentech Limited, a leading manufacturer of water-soluble films and security products, reported a significant revenue decline in the first quarter, despite showing improvements in profitability margins. The company's performance reflects the ongoing challenges in the global business environment.
Financial Highlights
- Revenue for Q1 stood at Rs. 416.00 million, down 27% from Rs. 573.00 million in the previous quarter and 37% year-over-year.
- EBITDA decreased 11% quarter-on-quarter to Rs. 142.00 million, with EBITDA margin expanding to 34.20% from 28.00% in the previous quarter.
- Profit After Tax (PAT) declined 4% to Rs. 109.00 million, while PAT margin improved to 25.10% from 19.30% in the previous quarter.
Segment Performance
| Segment | Q1 (Rs. Million) | Previous Quarter (Rs. Million) | QoQ Change |
|---|---|---|---|
| Green Products | 344.00 | 503.00 | -32% |
| Hightech Products | 72.00 | 70.00 | +3% |
The Green Products segment experienced a sharp 32% decline, while the Hightech Products segment remained relatively stable with a slight 3% increase.
Management Commentary
Shilpan Patel, Chairman and Managing Director of Arrow Greentech, commented on the results: "While our continued focus on operational efficiency delivered incremental gains in profitability, the quarter was characterized by relatively softer revenue and margin performance. We remain mindful of the evolving global landscape, which continues to be shaped by geopolitical tensions, supply chain challenges, and broader macroeconomic headwinds."
Mr. Patel noted that exports to the USA were negligible during the quarter, while exports to Brazil increased for green products.
Strategic Focus
Arrow Greentech is maintaining its strategic focus on high-tech security products and innovative solutions aligned with the Atma Nirbhar Bharat initiative. This approach aims to reinforce the company's presence in the domestic market while unlocking new avenues for export-led growth.
The company remains committed to evolving its product portfolio in line with industry trends and customer needs, emphasizing targeted innovation, advanced product development, and securing key intellectual property.
Outlook
Despite the challenging quarter, Arrow Greentech's management expressed confidence in the company's positioning to deliver enduring value to stakeholders. The diversified product portfolio, agile operations, and disciplined financial approach are expected to provide resilience and flexibility to navigate uncertainty while pursuing growth opportunities across domestic and international markets.
Investors and stakeholders will be watching closely to see how Arrow Greentech adapts to the ongoing global challenges and capitalizes on its strategic initiatives in the coming quarters.
Historical Stock Returns for Arrow Greentech
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.07% | +0.62% | +1.65% | +11.88% | -34.24% | +1,040.26% |
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