Garware Hi-Tech Films (500655) Q1 24/25 earnings summary

Executive summary

• Achieved record consolidated quarterly results with revenue of ₹474.5 crore, EBITDA of ₹130 crore, PBT of ₹117.5 crore, and PAT of ₹88.4 crore for Q1 FY25, driven by high-end, value-added products across all segments.

• Achieved highest ever consolidated quarterly PBT, surpassing ₹100 crore for Q1 FY25, with robust growth in Solar Control Films (SCF) and Paint Protection Films (PPF).

• Strategic focus on innovation, premium product expansion, and market penetration led to record sales and profitability despite global uncertainties.

• Standalone and consolidated unaudited financial results for the quarter ended June 30, 2024, were reviewed and approved by the Board on August 8, 2024.

• Both standalone and consolidated results were reviewed by independent auditors, who found no material misstatements.

Financial highlights

• Consolidated revenue reached ₹474.5 crore, up 25% year-over-year and 6.2% sequentially; standalone revenue was ₹449.12 crore.

• EBITDA rose to ₹130 crore, up 78.7% year-over-year and 44.9% quarter-over-quarter; EBITDA margin improved to 27.4%.

• PAT increased to ₹88.4 crore, up 102.2% year-over-year and 52.8% sequentially; consolidated net profit attributable to owners was ₹88.35 crore.

• EPS for Q1 FY25 stood at ₹38.03, up 102.2% year-over-year; standalone EPS was ₹44.78.

• Gross margin reached 60% and EBITDA margin hit a record 27% for the quarter.

Outlook and guidance

• Confident in achieving ₹2,500 crore revenue by FY 2026, maintaining strong growth momentum through product innovation and market expansion.

• Margins expected to remain above 20%, with some seasonality and product mix variations.

• New PPF production line (300 lakh sq ft/year, ₹125 crore capex) to be operational by Q2 FY26, supporting further growth.

• Management expects growth momentum to continue, supported by new product launches, R&D excellence, and global distribution network.

• Results reflect continued growth in revenue and profitability, with management reaffirming focus on the polyester films segment.