Garware Hi-Tech Films (GHFL) hit an upper circuit of 20% at Rs 1904.55 after the company's consolidated net profit surged 83.8% to Rs 55.88 crore on 39.9% increase in revenue from operations to Rs 453.62 crore in Q3 FY24 over Q3 FY23.
Profit before tax jumped 80.19% YoY to Rs 72.96 crore in Q3 FY24.EBITDA stood at Rs 85 crore in Q3 FY24, registering the growth of 61.2% as compared with Rs 52 crore posted in corresponding quarter last year. EBITDA margin expanded to 18.7% in Q3 FY24 from 16.2% in Q3 FY23.
The improvement in margin was primarily driven by higher volumes in the PPF and SCF film segments. However, margin pressure on IPD products and strategic investments in marketing and sales initiatives partially tempered the EBITDA gains.
The Paint Protection Film (PPF) business achieved a substantial 35% sequential revenue growth in Q3FY24 compared to Q2FY24, due to strong demand primarily from USA, Middle East and India. The business delivered a significant 36% contribution to total revenue in Q3FY24.
Solar Control Film (SCF) business has achieved a 10% sequential revenue growth in Q3FY24 compared to Q2FY24, due to improved global macroeconomic environment and surge in automobile sales.
In IPD Business, the capacity utilization of IPD plants stood at 72% in this quarter as compared 82% in Q3FY23. It has experienced a decline in Q3FY24 compared to Q3FY23 due to industry headwinds.
S. B. Garware, chairperson and managing director of GHFL, said, The solid performance presented today is a testament to our strategic and unwavering commitment to top-notch quality. Our thoughtful product expansion and meticulous introduction of superior offerings in the past, has laid this strong foundation and customer base. Going forward, product innovation remains our cornerstone, coupled with aggressive sales and marketing strategy, to drive us towards higher value-added products and profitability.
Monika Garware, vice chairperson and joint managing director of GHFL, said, While the industry faced geo-political challenges, including "red sea crisis" and supply chain issues in the later part of the quarter, our performance remained strong. This resilience is attributed to strong demand for PPF, solid recovery in SCF across domestic and international markets, supported by effective shipping and logistics.
Garware Hi-Tech Films (formerly Garware Polyester) is the flagship company of the Garware Group. It manufactures Hi-Tech specialty performance polyester Films and has its manufacturing facilities at Aurangabad, Maharashtra, India. It is also the market Leader and India's only manufacturer of Sun control window films for Building, safety, and auto applications.
The scrip hit all-time high at Rs 1904.55 in intraday today.
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