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-on-year and 30.8% quarter-on-quarter, driven by strong growth in Sun Control Films, Paint Protection Films, and Industrial Products, supported by operational improvements and expansion into new geographies.

• Quarterly PAT reached an all-time high of INR 104.3 crores, up 127.1% year-on-year and 18.0% sequentially.

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

• Strategic focus on operational efficiency, premium offerings, and new product launches, including Titanium PPF and DecoVista decorative films, contributed to record performance.

• Export sales comprised 81.3% of Q2 revenue, with value-added products making up 88% of exports.

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); EBITDA margin: 24.2%.

• PAT: INR 104.3 crores (+127.1% YoY, +18.0% QoQ); PAT margin: 16.8%.

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

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

• EPS for Q2 FY25: INR 44.88 (+127.1% YoY, +18.0% QoQ).

Outlook and guidance

• Management maintains revenue guidance of INR 2,500 crores for FY26 and remains optimistic about sustaining growth momentum, focusing on operational efficiency, premium product offerings, and expanding distribution channels.

• EBITDA margin guidance remains at 25% ±3%, reflecting seasonality and product mix.

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

• New PPF production line with 300 lakh sq ft annual capacity to commence by Q2 FY26, expected to add INR 450-500 crores in revenue at full capacity.

• Continued investment in product innovation, new geographies, and digital marketing to drive future growth.