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

Executive summary

• Q3 FY25 consolidated revenue was INR 466.4 crores, up 2.8% year-over-year, with PAT of INR 60.8 crores and stable growth despite seasonal softness.

• Nine-month FY25 consolidated revenue reached INR 1,561.4 crores, up 26.9% year-over-year, and PAT grew 74.2% to INR 253.4 crores, driven by value-added products and strong segment performance.

• Export sales comprised 74% of total, with value-added products at 85% of the mix.

• Board approved INR 118 crores investment in India's first TPU extrusion line, expected to be operational by October 2026.

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

Financial highlights

• Q3 FY25 EBITDA was INR 93.7 crores, up 10.7% year-over-year; nine-month EBITDA rose 61.7% to INR 374.1 crores.

• Q3 FY25 PAT was INR 60.8 crores, up 8.8% year-over-year; nine-month PAT was INR 253.4 crores, up 74.2% year-over-year.

• Operating margin for nine months annualized at 24%, up from 9% in 2018.

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

• EPS for 9M FY25 was INR 109.1, up 74.2% year-over-year.

Outlook and guidance

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

• Operating margin guidance remains at 25% ±3%, with potential for 1.5%-2% improvement from backward integration.

• Q4 expected to show strong sequential and year-over-year growth, with Q1 and Q2 of next year anticipated to match or exceed prior highs.

• Long-term top-line growth expected at 20%-25% annually, with continued margin expansion.

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