Garware Technical Fibres Limited , a leading manufacturer of technical textiles, reported a significant decline in its financial performance for the second quarter. The company's consolidated net profit fell by 52% year-on-year, while also announcing an interim dividend.

Financial Highlights

• Net Profit: Consolidated net profit for Q2 stood at Rs. 319.00 million, down from Rs. 659.00 million in the same period last year, marking a 52% decrease.
• Revenue: The company's revenue declined to Rs. 3.50 billion from Rs. 4.20 billion year-on-year, representing a 16.7% decrease.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) fell to Rs. 484.00 million compared to Rs. 884.00 million in the previous year.
• EBITDA Margin: The EBITDA margin contracted to 13.92% from 21.02% in the corresponding quarter last year.

Interim Dividend

Despite the challenging quarter, Garware Technical Fibres' Board of Directors has declared an interim dividend of Rs. 8.00 per equity share. The record date for determining the eligibility for the interim dividend is set for Friday, November 17, with the payment to be made on or before December 6.

Segment Performance

The company's financial results reveal performance across two main segments:

Corporate Actions

Garware Technical Fibres has also announced several corporate actions:

1. Committee Reconstitution: The company has reconstituted its Nomination and Remuneration Committee, Stakeholder Relationship Committee, and Corporate Social Responsibility Committee, effective November 8.

2. Acquisition: On July 7, Garware Technical Fibres UK Pvt. Ltd. acquired 100% equity share capital of Offshore & Trawl System AS and Advanced Mooring System AS, both based in Norway, for a consideration of INR 10,969.54 lakh.

3. Bonus Shares: The company had allotted bonus shares in the ratio of 4:1 (four new shares for every one share held) on January 6, by capitalizing its General Reserve.

The financial results indicate a challenging quarter for Garware Technical Fibres, with significant declines across key financial metrics. However, the company's decision to declare an interim dividend suggests confidence in its financial stability and commitment to shareholder returns.

Garware Technical Fibres , a leading manufacturer of technical textiles, has reported a robust performance for the first quarter. The company's consolidated net profit after tax increased by 13.5% to Rs. 53.1 crore, compared to Rs. 46.8 crore in the same period last year.

Financial Highlights

• Net Sales rose by 9% to Rs. 367.2 crore, up from Rs. 336.2 crore in the corresponding quarter
• Profit before tax grew by 13.4% to Rs. 70.4 crore, compared to Rs. 62.1 crore in the previous year
• Earnings per share (EPS) stood at Rs. 5.35, marking a growth of 13.6% year-over-year

Segment Performance

The company's growth was primarily driven by its Geosynthetics business, which continues to expand exponentially. The International Fisheries segment also performed exceptionally well, with key breakthroughs in new markets and customers. Domestically, industrial product sales showed strong growth.

Management Commentary

Mr. Vayu Garware, CMD of Garware Technical Fibres, stated, "We have witnessed a top line growth of 9% during the first quarter driven primarily by the Geosynthetics business which continues to grow exponentially. International Fisheries segment has also performed very well with key breakthroughs in new markets and customers."

Challenges and Outlook

Despite the positive results, the company acknowledges potential challenges on the horizon. These include significant tariff impositions by the USA and ongoing geopolitical tensions. While Garware Technical Fibres' exports to the USA constitute only about 10% of their topline, the company is actively working to support its customers and partners in the USA and manage these temporary disruptions.

Financial Position

The company's balance sheet remains strong, with total assets of Rs. 1,81,430.42 lakhs as of June 30. The synthetic cordage segment continues to be the largest contributor to both revenue and profits.

Garware Technical Fibres has demonstrated resilience and growth in a challenging global environment. The company's focus on innovation and market expansion appears to be yielding positive results, positioning it well for future growth despite potential headwinds in international markets.