*Garware Hi Tech Films Ltd. Q2FY25 Concall Update*
(Nirmal Bang Retail Research)
*Outlook – Positive*
*# Q3 to be muted due to seasonally weak quarter for SCF segment. Q4 to see substantial growth.*
*# Co to surpass its guidance of Rs.2000 cr revenues for FY25 and Rs.2500 cr revenues in FY26*
*Quarter Highlights*
• Revenues saw a 48.3% YoY and 24.1% QoQ growth at Rs.589 crore on the back of robust volumes in PPF segments.
• Capacity utilisation of SCF was 100%, and PPF was 135%.
• Despite slowdown in Auto sector across globe, Co’s products have seen good traction.
• North American markets contributed 55% to sales, 48% a year ago.
• EBIDTA margins saw a growth of 490 bps YoY at 21.2%; but were down 380 bps QoQ due to lower contribution from IR sales in window films.
• Cash reserves stand at Rs.544 crores and zero net debt.
• Co is confident to surpass Rs2000 crore guidance on revenues for FY25 and Rs. 2500 in FY26 and guided for 25% plus minus 3% on margins including other income (excluding other income it will be 22% plus minus 3%).
*Segmental Performance*
*PPF segment*
• ‘Titanium’ product doing very well. Co has recently launched Colour PPF.
• Co expects PPF market to grow from current 2% to 10% in India.
• New PPF production line of 300 LSF to be functional by Q2FY26 taking the total LSF capacity to 600 LSF.
• Garware application studios – current 160 to 200+ since growth coming from Tier2 and Tier3 cities as well. Colour PPF series also seeing traction in US markets.
*SCF Segment*
• Revenues saw good sales traction with qoq growth as well on the back of product innovations.
• Co is entering newer markets and is focusing on digital ad spends.
• Architectural Vertical -Seeing 100% YoY growth rate on the back of its key product ‘Spectra Pro‘ that is spectrally selective film which is doing very well in European market and is now gaining traction in America as well.
*IPD segment*
• Now contributes 29% (earlier 50% 3-4 years ago)
• Co continues to focus on speciality products with better margins.
(Nirmal Bang Retail Research)
*Outlook – Positive*
*# Q3 to be muted due to seasonally weak quarter for SCF segment. Q4 to see substantial growth.*
*# Co to surpass its guidance of Rs.2000 cr revenues for FY25 and Rs.2500 cr revenues in FY26*
*Quarter Highlights*
• Revenues saw a 48.3% YoY and 24.1% QoQ growth at Rs.589 crore on the back of robust volumes in PPF segments.
• Capacity utilisation of SCF was 100%, and PPF was 135%.
• Despite slowdown in Auto sector across globe, Co’s products have seen good traction.
• North American markets contributed 55% to sales, 48% a year ago.
• EBIDTA margins saw a growth of 490 bps YoY at 21.2%; but were down 380 bps QoQ due to lower contribution from IR sales in window films.
• Cash reserves stand at Rs.544 crores and zero net debt.
• Co is confident to surpass Rs2000 crore guidance on revenues for FY25 and Rs. 2500 in FY26 and guided for 25% plus minus 3% on margins including other income (excluding other income it will be 22% plus minus 3%).
*Segmental Performance*
*PPF segment*
• ‘Titanium’ product doing very well. Co has recently launched Colour PPF.
• Co expects PPF market to grow from current 2% to 10% in India.
• New PPF production line of 300 LSF to be functional by Q2FY26 taking the total LSF capacity to 600 LSF.
• Garware application studios – current 160 to 200+ since growth coming from Tier2 and Tier3 cities as well. Colour PPF series also seeing traction in US markets.
*SCF Segment*
• Revenues saw good sales traction with qoq growth as well on the back of product innovations.
• Co is entering newer markets and is focusing on digital ad spends.
• Architectural Vertical -Seeing 100% YoY growth rate on the back of its key product ‘Spectra Pro‘ that is spectrally selective film which is doing very well in European market and is now gaining traction in America as well.
*IPD segment*
• Now contributes 29% (earlier 50% 3-4 years ago)
• Co continues to focus on speciality products with better margins.