Garware Hi-Tech Films (500655) Q2 24/25 earnings summary

Executive summary

• Achieved record consolidated revenue of INR 620.6 crores in Q2 FY25, up 56.3% year-over-year and 30.8% quarter-on-quarter, driven by strong growth in Sun Control Films, Paint Protection Films (PPF), and Industrial Products.

• PAT reached an all-time high of INR 104.3 crores, up 127.1% year-over-year and 18% quarter-on-quarter.

• EBITDA rose to INR 150.5 crores, up 103.3% year-over-year and 15.8% quarter-on-quarter, with margin improving to 24.2%.

• Strategic focus on operational efficiency, premium offerings, and expansion into new geographies contributed to record performance.

• Growth led by PPF, Sun Control Films, and architectural films, with significant traction in exports and new product launches.

Financial highlights

• Q2 FY25 revenue: INR 620.6 crores (+56.3% YoY, +30.8% QoQ); EBITDA: INR 150.5 crores (+103.3% YoY, +15.8% QoQ); PAT: INR 104.3 crores (+127.1% YoY, +18.0% QoQ).

• EBITDA margin improved to 24.2% (vs 18.6% YoY); PAT margin at 16.8% (vs 11.6% YoY).

• H1 FY25 revenue: INR 1,095.1 crores (+41.0% YoY); H1 PAT: INR 192.6 crores (+115.0% YoY).

• Exports contributed 81.3% of Q2 revenue, with value-added products making up 88% of export sales.

• Cash reserves at INR 544 crores as of September 30, 2024, with zero net debt.

Outlook and guidance

• Management maintains FY25 revenue guidance of INR 2,500 crores for next year, confident of exceeding current year’s INR 2,000 crore target barring major geopolitical risks.

• EBITDA margin guidance remains at 25% ±3%, with seasonal and product mix variations expected.

• Q3 expected to be seasonally weaker, but Q4 anticipated to rebound strongly.

• New PPF production line (300 lakh sq ft annual capacity) on track for Q2 FY26, expected to add INR 450-500 crores in annual revenue at full ramp-up.

• Management remains optimistic about sustaining growth momentum, focusing on operational efficiency, premium product offerings, and expanding distribution channels.