Garware Hi-Tech Films (500655) Q3 24/25 earnings summary

Executive summary

• Achieved consolidated Q3 FY25 revenue of INR 466.4 crores and PAT of INR 60.8 crores, with stable year-over-year growth despite seasonal softness and a sequential decline due to lower sales of higher-margin IR products.

• Nine-month FY25 revenue reached INR 1,561.4 crores, up 26.9% year-over-year, and PAT at INR 253.4 crores, up 74.2% year-over-year, driven by strong demand across key segments.

• EBITDA for 9M FY25 rose 61.7% year-over-year to INR 374.1 crores, reflecting strong sales of value-added products and operational efficiency.

• Standalone and consolidated financial results for the quarter and nine months ended December 31, 2024, were reviewed and approved by the Board on February 7, 2025.

• Auditors issued an unmodified review conclusion, indicating no material misstatements in the financial statements.

Financial highlights

• Q3 FY25 consolidated revenue was INR 466.4 crores (+2.8% YoY), EBITDA INR 93.7 crores (+10.7% YoY), PAT INR 60.8 crores (+8.8% YoY), EBITDA margin 20.1%, PAT margin 13.0%.

• 9M FY25 consolidated revenue was INR 1,561.4 crores (+26.9% YoY), EBITDA INR 374.1 crores (+61.7% YoY), PAT INR 253.4 crores (+74.2% YoY), EBITDA margin 24.0%, PAT margin 16.2%.

• PBT for 9M FY25 was INR 336.7 crores (+75.2% YoY), with PBT margin at 21.6%.

• Exports contributed 74% of revenue; value-added products made up 85% of the product mix.

• Cash surplus of INR 572 crores as of December 31, 2024; zero net debt.

Outlook and guidance

• FY25 and FY26 revenue guidance remains unchanged at INR 2,000+ crores and INR 2,500 crores, respectively.

• Operating margin guidance maintained at 25% ±3%; nine-month FY25 margin at 24%.

• Q4 expected to show strong sequential and year-over-year growth, with performance similar to Q1/Q2.

• Top-line growth of 20%-25% and continued margin improvement expected for FY27.

• Continued focus on innovation, operational efficiency, and expanding product offerings, with strategic partnerships to drive growth in domestic and international markets.