Garware Hi-Tech Films (500655) Q4 04/05 earnings summary

Executive summary

• FY05 gross sales rose 18.25% to ₹894 crore; export sales grew 47.20% to ₹237 crore, supporting margins amid domestic price pressure.

• Value-added films and export-market expansion remained central to strategy; raw-material inflation and industry capacity additions weighed on the outlook.

Financial highlights

• Net sales were ₹854.23 crore, up 17.05% YoY; reported profit before interest, depreciation and tax was ₹111.01 crore, up 1.42%.

• PBT rose 22.30% to ₹35.60 crore; PAT increased 4.34% to ₹20.54 crore, after higher tax provision of ₹15.06 crore.

• EPS was ₹9.41 versus ₹9.01; proposed dividend was ₹1 per share, or 10%.

Outlook and guidance

• Global polyester-film demand was estimated to grow 8–10% annually; domestic demand was expected to grow faster, with packaging-film demand robust.

• Export expansion targeted China, Brazil, Japan and Australia; niche and value-added products were expected to support future gross margins.

• Sun-control film exports were growing steadily, with more than 80% of production exported; efforts targeted substantial export-volume growth in specialty products.