Technical textiles manufacturer Garware-Wall Ropes (GWRL) today posted 6.9 per cent growth in profit after tax at Rs 28.2 crore for the quarter ended September 30, compared to the same period last year.
The company's PAT stood at Rs 26.3 crore in the corresponding period of FY17, GWRL said in a release issued here.
Net sales, however, declined by 8.9 per cent to Rs 206 crore in the second quarter of FY18, compared to Rs 226.1 crore in the same period of FY17.
"In the second quarter, domestic fisheries contributed to a large proportion of the overall sales. As has been informed in previous months, we have been seeing a short-term disruption in our domestic business on account of GST implementation, more particularly in the fisheries sector," GWRL CMD Vayu Garware said.
The distribution channel had not geared up for GST on time and the increased tax rate on fishnets had put inflationary pressure on the end consumers, he added.
"However, the recent reduction in GST rates on fishnets and some agriculture products is good news and is expected to impact demand positively and get secondary sales back on track. Nevertheless, we have been able to continue the healthy trend of improving our EBIDTA margins, which increased to 20.5 per cent," he said.
The company's international markets continued to do well with a strong order book for its differentiated product portfolio and GWRL expects to resume its normal profit growth from the third quarter, he added.
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