Garware Hi-Tech Films (500655) Q4 03/04 earnings summary

Executive summary

• FY04 performance improved on higher sales volumes and realizations; gross sales rose 8.5% to ₹756 crore, while net profit increased 19.6% to ₹19.69 crore.

• Export growth and value-added films supported results, with specialty exports expected to expand; new industry capacity and trade restrictions remained key headwinds.

Financial highlights

• Gross sales were ₹75,598.99 lakh versus ₹69,659.63 lakh; exports increased 6% to ₹161 crore from ₹152 crore.

• Net sales were ₹43,901.96 lakh, up 6.6%; other income rose 93.4% to ₹266.18 lakh, including ₹135.13 lakh profit on exchange-rate fluctuations.

• Profit before interest, depreciation and tax reached ₹109.45 crore, up from ₹105.21 crore; PBT including prior-period items was ₹29.11 crore versus ₹20.67 crore.

• Net profit was ₹19.69 crore versus ₹16.46 crore; EPS rose to ₹9.01 from ₹7.53.

• Raw materials consumed increased to ₹201.45 crore from ₹172.75 crore; interest and financial charges declined 6.3% to ₹48.22 crore.

Outlook and guidance

• Higher international prices were expected to support a substantial increase in export volumes, particularly in specialty films; local packaging-film demand and prices were expected to remain firm.

• Garfilm and Global Window Film had positive overseas response; UK and US subsidiaries were expected to perform well, supporting growth in Europe and American markets.

• Sun Control Film exports were growing, with more than 80% of production exported; domestic sales were planned across price ranges as car kits, alongside continued growth in safety films.