Garware Hi-Tech Films Limited , a prominent player in the specialty films industry, has announced significant changes in its top management and compliance structure. The company recently disclosed that its Chief Financial Officer (CFO), Pradeep Mehta, will be stepping down from his position.

CFO Resignation

Pradeep Mehta, who has been serving as the CFO of Garware Hi-Tech Films Limited, is set to resign from his role. The company had initially announced Mehta's resignation on July 5, 2024. His tenure will officially conclude at the close of business hours on August 14, 2024.

Changes in Authorized Persons

Following Mehta's departure, he will no longer serve as an Authorized Person under the Securities and Exchange Board of India (SEBI) Listing Regulations. To ensure continued compliance and smooth operations, Garware Hi-Tech Films has designated two new authorized persons:

1. Mohan S. Adsul: Whole Time Director
2. Awaneesh Srivastava: Company Secretary and Compliance Officer

These newly appointed authorized persons will be responsible for determining the materiality of events for stock exchange disclosures. They will carry out this crucial task under the guidance of the Chairman and Managing Director of the company.

Implications for Investors

This management change and the appointment of new authorized persons underscore Garware Hi-Tech Films' commitment to maintaining transparency and adhering to regulatory requirements. The company's proactive approach in designating new authorized persons ensures that it remains compliant with SEBI Listing Regulations, which is crucial for investor confidence and corporate governance.

Investors and stakeholders will likely be watching closely to see how these changes impact the company's financial reporting and disclosure practices in the coming months. As Garware Hi-Tech Films navigates this transition, the market will be keen to observe any potential shifts in strategy or financial management under the new authorized persons' oversight.

Garware Hi-Tech Films Limited , a leading manufacturer of specialty films, reported a mixed performance for the first quarter, facing headwinds from early monsoons and escalating U.S. tariffs.

Financial Performance

The company reported revenue of ₹495.00 crores for the quarter, marking a 4.3% year-over-year growth. However, EBITDA declined to ₹123.00 crores from ₹130.00 crores in the same quarter last year, with margins dropping to 24.8% from 27.4%. Profit after tax decreased to ₹83.00 crores from ₹88.40 crores.

Segment Performance

• Paint Protection Films showed strong performance with 28% growth.
• SunControl Films declined 7% due to early monsoons and sluggish automotive sales.
• Industrial Products dropped 3%, with the shrink films sub-segment declining by nearly 29%.

U.S. Tariff Challenges

The company faced significant challenges due to escalating U.S. tariffs:

• Tariffs increased from 6.25% to 16.25% in April.
• An additional 15% tariff was imposed from August 7.
• The company is in discussions with channel partners for an amicable solution.

Early Monsoon Impact

The unusual early onset of monsoons affected domestic demand, particularly in the automotive sector for SunControl Films and the beverage industry for shrink films.

Strategic Initiatives

Despite challenges, Garware Hi-Tech Films is pursuing several strategic initiatives:

• Expanding its Garware Application Studios network to 300 locations by March.
• Investing in a second PPF line and an upcoming TPU plant.
• Maintaining a strong balance sheet with over ₹700.00 crores in cash and cash equivalents.

Geographical Performance

• Middle East market is showing strong growth, expected to grow 30-40% this year.
• European market is targeted for 20% growth.
• U.S. market remains crucial, accounting for about 45% of exports.

Outlook

Management expects the current fiscal year to remain challenging due to tariff uncertainties and has made its earlier revenue guidance of ₹2,500.00 crores uncertain. The company is focusing on capturing new opportunities in all business segments while improving operational efficiencies to navigate the current environment.

Deepak Joshi, Director of Sales and Marketing, stated, "We remain committed to navigating the current environment with agility, while laying the foundation for a stronger and more resilient future."

As Garware Hi-Tech Films adapts to these challenges, investors and industry observers will be closely watching how the company manages its U.S. market exposure and leverages growth opportunities in other regions.