Garware Technical Fibres surged 13.62% to Rs 4490, following the company's strong Q2FY25 results and the board's approval of a 4:1 bonus share issue.
On a consolidated basis, net profit of Garware Technical Fibres surged 25.7% to Rs 65.96 crore on 28.1% increase in net sales to Rs 420.59 crore in Q2 September 2024 over Q2 September 2023. Profit before tax stood at Rs 87.67 crore in the Q2FY25, up 28.7% YoY and up 41.24% QoQ.Total expenses rose 26.7% to Rs 329.13 crore in Q2 FY25 over Q2 FY24. During the quarter, cost of materials consumed stood at Rs 105.24 crore (up 13.6% YoY) while employee benefits expense was at Rs 54.26 crore (up 11.2% YoY).
Net cash flow from operating activities decreased to Rs 29.83 crore for the six months ended September 2024, compared to Rs 53.89 crore for the same period in 2023.
The company's board has recommended issue of bonus shares in the ratio of 4:1 i.e. four new fully paid-up equity share for every each existing fully paid-up equity share.
Vayu Garware, CMD, Garware Technical Fibres said, "As expected, Q2 FY25 has shown a good profit growth of -30% over previous year Q2 FY24 mainly on account of a strong performance from Aquaculture and Geosynthetics businesses which both grew substantially. We were also able to maintain significant PBT margins in the range of ~20%. First half of FY25 has been good for the company overall, GTFL profit before tax grew by 20% in H1 FY25 against the previous year H1FY24. Geo synthetics continued its strong growth in top line and profit during H1 FY25. We expect the continue the growth momentum during the second half of the year FY25".
Garware Technical Fibres is a leading player in technical textiles specializing in providing customized solutions to its customers worldwide. Globally, the company is known for its applied innovation in the field of sports, fisheries, aquaculture, shipping, agriculture, coated fabrics and geo-synthetics. The company's products are manufactured in state-of-art facilities at Wai and Pune and marketed in more than 75 countries.
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