agreed.
im unable to get the pricing in https://www.plastemart.com . Please help where to find
On the top right, a link for polymer prices is given, under that you will get all the product list which come under polymers.
Polymers per se is a very huge category and each category has various different grades.
2 Likes
From this link , you get the consumption pattern of Polypropylene. Might be helpful to you .
1 Like
Outstanding results.
https://x.com/REDBOXINDIA/status/1821455893038293447?t=L_75P1PQ4iyGxI1YaOH-xA&s=19
1 Like
Blockbuster results Q1FY25.
Highest ever Consolidated Quarterly PBT crossing ā¹ 100 crores
Revenues at ā¹ 474.5 crores, up by 25.0% Y-o-Y
EBIDTA at ā¹ 130.0 crores, up by 78.7% Y-o-Y
PBT at ā¹ 117.5 crores, up by 100.7% Y-o-Y
PAT at ā¹ 88.4 crores, up by 102.2% Y-o-Y
Consolidated Quarterly Performance (Q1 FY25 vs Q1 FY24):
Gross Revenue increased sharply by 25.0% Y-o-Y, supported by continued growth
momentum in Sun Control Films (SCF) and Paint Protection Films (PPF) businesses.
Strong efforts in Sales and Marketing led to a substantial increase in high end SCF and PPF
business. The architectural segment of SCF witnessed high growth with the introduction
of new products. EBITDA witnessed a commendable growth of 78.7% Y-o-Y and 44.9% Q-o-Q
owing to better performance from the Specialty segments. Overall, PAT improved by 102.2% Y
o-Y and 52.8% Q-o-Q on account of a better product mix and better realisation of the specialty
products.
Commenting on the results, Dr S. B. Garware, Chairman and Managing Director, said: " We have entered FY25 with an exceptional Q1 performance, propelled by the continued momentum in Solar Control Films and Paint Protection Films. Our strategic focus on innovation and market expansion, along with our commitment to superior-quality, value-added products and effective marketing positioned us well to maintain our growth trajectory."
Ms Monika Garware, Vice Chairperson and Joint Managing Director,
Our robust quarterly performance of highest ever sales and profitability achieved through increased contribution of high-end value-added products across all segments despite the continuing global uncertainty. We foresee this momentum to continue way forward with our state-of-the-art manufacturing facilities, excellence in R&D, and strong global distribution network.ā
Business Updates:
Solar Control Film (SCF)
SCF protection has properties like heat and UV Ray rejection, safety, privacy and aesthetic
look. SCF is used largely applied on glass surface of the vehicle. It is also widely used in
Architectural Office/residential windows. SCF business achieved record revenue growth
in Q1FY25 compared to Q1FY24. This performance is attributed to an increased sales of
high-end value-added products and penetration to new geographies. The introduction of
new products like Spectra Pro and Decovista have started getting good response from the
market.
Paint Protection Film (PPF)
PPF protects your vehicleās paint from unsightly damage and maximizes re-sale value.
Some of its features include Self-healing, Higher Shine, Stain Resistance and Superior
Optical Clarity. With the introduction of full range of products including top notch Titanium
series, Matte, White and Black series, PPF is witnessing strong momentum.
IPD Business
IPD business witnessed recovery in both specialty and commodity segments with
marginal growth in Q1FY25. Focused approach towards high end products like lidding
films, PCR / floatable shrink films is leading to margin improvement in the segment.
17 Likes
Great numbers achieved by the company, especially the increase in Operating margins from 18% to 25 % is commendable.
Majority of the increase in revenue has come from SCF business this quarter, which is again a highly value added but seasonal business.
The IPD segment seems to have performed well on account of raw material prices.
However it is yet to see if margins at this level are sustainable.
1 Like
Hi Shreya!
As per the management in todays concall, they will be able to sustain margins above 20% (as per me they can do 20-22% margins on yearly basis this year). Seasonality led by demand from the SCF segment led to 25% margin in Q1. Rest, the topline guidance of 2000cr for FY25 and 2500 cr for FY26 remains intact.
6 Likes
Garware saw very good growth in their architectural SCF business which improved their margins significantly. The architectural SCF market is actually much bigger than the auto SCF market and it seems that Garwareās Spectra Pro and DecoVista launches have worked very well. Concall notes below.
FY25Q1
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PPF
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Work with 4-5 big players with their captive demand driving most volumes
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Use high quality aliphatic TPU based films, backward integration in ongoing
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Running at 100%+ utilization
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SCF
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SCF business experienced robust revenue growth due to high summer season demand . Fully backward integrated
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Recent launches of Spectra Pro and DecoVista series have got favorable market response. The new line has helped them improve supply to the market
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Running at 100% utilization
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25% of SCF revenues is now coming from architectural business (10% of total company revenues), these are very premium and high-end margin products
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Have also setup a domestic team focusing on architectural SCF business
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Had increased SCF capacity from 2,400 to 4,200 2-years back
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IPD
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IPD business observed a recovery in both specialty and commodity sectors from USA and Europe
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Shifting towards premium products such as newly developed lidding films, PCR and floatable shrink films
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Running at 100% utilization
-
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Working very hard to grow in Middle East, Far East and Europe
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50-50 mix for branded vs white label sales
Disclosure: Invested (no transactions in last-30 days)
13 Likes
Dear @harsh.beria93 Sir
Why this business not able to generate high ROE apart from showing great results. Waiting for your reply
2 Likes
Very good result.
If PPF, SCF and IPD are running at 100% utilisation where will the revenue growth come from for next few quarters?
Any brownfield /greenfield capex coming online soon or at least planned?
Itās actually a high ROE business, my friend. The details and nuances of accounting can sometimes obscure these gems from the standard screens used by average retail investors like us.
In 2017, the company revaluated its fixed assets on the balance sheet. What does that mean? Imagine you started a business in 1990 with land and machinery valued at 100 Cr. That investment stays on the balance sheet at its original cost until, say, 2017, when you decide to revalue your fixed assets. This revaluation might occur because the land (though not necessarily the building) has appreciated over time due to general inflation. So, the land that was worth 100 Cr. in 1990 might now be valued at 1500 Cr. in 2017. By revaluing your fixed assets, you increase the value on the asset side of the balance sheet, and since itās a balance sheet, you adjust this with your reserves on the liabilities side.
Companies may revalue their assets for various reasons, such as M&A or maybe debt obligations, though I might not know the specific reason in this case. However, this revaluation increases the denominator in the ROE (equity capital + reserves) calculation, while the numerator (Net Profit) remains largely unaffected.
Many of the high ROE companies we admire today are evaluated based on historical costs rather than current values. If you were to revalue the balance sheets of companies like Asian Paints or Pidilite, which have been around for 30+ years, you might not see those impressive 25%+ ROE numbers. ROE tells us the return on the actual or initial investment, and revaluation can significantly alter this picture.
36 Likes
First of all, great observation!!!
But I have one counter arguments:-
If the company purchased a piece of land for ā¹100 cr, then it means it spent only ā¹100 cr to use that piece of land, and hence, whatever profits it earns in next 20 years, or 50 years, it should be valued on the basis of ā¹100 cr only, not the ā¹1500 cr, because the difference ā¹1400 was never spent. And whenever it decides to sell the land for, say ā¹1500 cr at CMP, the ā¹1400 cr will come as profit automatically.
4 Likes
Yes, youāre right. The method you mentioned is the correct way to read ROE, and Iām not suggesting that companies like Asian Paints and Pidilite donāt have high ROE in that sense. Iām just trying to paint a comparative picture of Garwareās seemingly depressed ROE. Ultimately, since these gains are added back to reserves, shareholders still have a claim over these profits.
4 Likes
Thankyou So much @i_mustafa for the detailed answer
1 Like
This quarter they are to adding Garware application studio aggressively
delhi
agra and jhansi
jalgaon and aurangabad
faridabad
bhopal and indore
pune
disc - invested not buy/sell recommendation
10 Likes
Garware Hi Tech films -
Q1 FY 25 results and concall highlights -
Revenues - 474 vs 380 cr, up 25 pc
EBITDA - 130 vs 89 cr, up 78 pc ( margins @ 27 vs 20 pc - massive margin improvement )
PAT - 88 vs 44 cr, up 100 pc
Cash on books @ 493 cr
Revenue growth driven by continued growth momentum in SCF and PPF business
Architectural SCF witnessed high growth with introduction of new products like SpectraPro and DecoVista
IPD division witnessed recovery in both speciality and commodity segments. Focussed approach on high end products like lidding films, PCR/floatable shrink films is leading to margin improvement in this segment
Segment wise sales mix -
Consumer Products Division ( SCF + PPF ) - 67 pc of revenues
Industrial Products Division ( VAP + Commodity products ) - 33 pc of sales. In the IPD, 66 pc of sales come from Value Added Products like - shrink films and other special IPDs. Rest 33 pc revenues come from commodity products
Overall, at a company level, VAP:Commodity products ratio @ 88:12 vs 83:17 in Q1 LY ( massive improvement towards VAP )
Opened new Garware Application studios in tier 2/3 cities like - Nahsik, Faridabad, Agra, Jammu, Srinagar, Azamgarh, Noida, Dehradun, Bhopal and Ahmednagar
Aggressively ramping up engagement with - Influencer community, car experts, Architects
Company is the only manufacturer of professional grade PPF in India
Company has one of the worldās largest single location SCF capacity
Domestic : Export sales ratio @ 24:76
Companyās new capacity of 300 lakh Sq Ft / annum is expected to begin production in Q2 of FY 26. Company is expected to spend Rs 125 cr for the said expansion. Company is currently running on full capacity and likely to do so till the new capacity comes up. This facility should have a revenue potential of between 300-350 cr / yr
Even within the SCF, company is increasing the sales of higher end - higher UV and heat rejection films. Margins in these films are 20-30 pc higher than the absolute basic SCFs ( with much lower UV and heat rejection properties )
Far higher margins in Q1 are also because Q1 is exceptionally good for SCFs
Company has the highest degree of vertical integration when it comes to making SCFs,PPFs - this gives them a big edge over the Chinese / Korean competition
Interms of revenue contribution in the CPD, max revenues come from SCF - Auto, then PPF, then SCF - architectural. SCF-architectural is currently growing at the fastest rate. Also, the runway for growth is the highest in the architectural segment because of under-penetration
Despite Q1 being a seasonally strong Qtr, company is confident of maintaining EBITDA margins of > 20 pc for full FY 25
Company is very confident of clocking 2000 cr and 2500 cr of sales for FY 25 and FY 26 !!!
Rough break up of companyās CPD sales between Branded : White Label ( sale to OEM etc ) stands at 50:50
Disc: holding, inclined to add more, biased, not SEBI registered, not a buy/sell recommendation
7 Likes
Everything in this business seems to be going in the right direction, they had
good Q1, management seems very confident(Iām not good when it comes to analyzing the management), segments of the business are doing great - although some margins might not sustainable due to the seasonality in business, they have great R&D, running beyond capacity, ongoing capexā¦
One question I had from the latest concall - they were hesitant in sharing exact breakdown of the revenue of CPD and IPD , is that considered confidential like the management pointed out or is that something they need to disclose?
The management is keen on having higher margins on annual basis but we shall have to see how
high. The stock price has also run up quite a bit in the last 3-4 months, been tracking this for
a while but still unable to get enough conviction and the recent valuations are a bit high
for my comfort, felt like market is taken future into consideration when valuating the stock
I am also biased towards the stock but valuationsā¦ ,with a very bullish Q1, Q2-Q3 might be muted, will continue tracking for a few more quarters.
not SEBI registered, not a buy/sell recommendation, no holdings
3 Likes
Hi everyone,
I used managementās ā¹2,500 crore revenue guidance to construct what FY26 might look like for Garware Hi-Tech Films Limited
Based on managementās guidance, I estimate a 22.1% revenue CAGR and a 41.4% EPS growth over the next two years ā from FY24 to FY26
There were 2 key assumptions of note:
Firstly, I went with 22% EBITDA margin ā which is in line with managementās 20-25% guidance
Secondly, GHFL holds ā¹275 crores in debt and arbitrage mutual funds. Now with profits of ā¹19.4 crs flowing into last yearās P&L as āother incomeā (page 149) & combined with gains from exchange rate fluctuations (ā¹16.3 crs) ā itās a bit tricky to estimate āother incomeā. Hence Iāve conservatively kept it at ā¹40 crores for FY25 & FY26
To put it all together, Iām getting an EPS of ā¹174.4 for FY26 ā which is exactly double of where the company closed in FY24
Hope this helps.
29 Likes
XPEL acquired its Indian distributor UniProtect Vetures LLP in October 2024 to mark its direct presence in India. The India division of XPEL is headed by Abhishek Joshi an ex-employee of Garware Hi-tech.
Itāll be interesting to figure out if XPEL will source films from Garware or not for its India business as both companies are trying to build retail brands in India. Could be a potential question to management in tomorrowās concall.
10 Likes
Results Garware Hi-Tech Films Ltd for Q2 FY25
Particulars Q2 FY25 (INR Crores) Q2 FY24 (INR Crores) and Q1 Fy25 ( INR Crores)
Revenue from Operations 620.58 vs 397.11 up 56.2% yoy Q1 at 474.47 up 30.8% qoq
Total Income 634.23 vs 406.27 up 56.1% yoy Q1 at
485.80 up 30.5% qoq
Cost of Materials Consumed 282.22 vs 207.61 35.9% yoy Q1 at 229.07% qoq
Total Expenses 496.11 vs 345.61 43.5% yoy Q1 at 368.28 up 34.7% qoq
Profit Before Tax (PBT) 138.12 vs 60.66 up 127.7% yoy Q1 at 117.52 up 17.5% qoq
Net Profit After Tax (PAT) 104.26 vs 45.91 up 127.1% yoy q1 at 88.35 up 18 % qoq
Total Comprehensive Income 107.39 vs 44.96 up138.8% yoy q1 at 100.52 up 6.8% qoq
ā¢ Revenue Growth: Revenue from operations grew by 56.2% YoY, reflecting significant growth driven by increased demand or higher pricing power.
ā¢ Cost of Materials Consumed: This cost rose by 35.9% YoY, suggesting an increase in production or higher material costs.
ā¢ Total Expenses: Total expenses increased by 43.5% YoY, but this is still lower than the revenue growth, which helps improve profitability.
ā¢ Profit Before Tax (PBT) and Net Profit (PAT): Both PBT and PAT showed robust growth at 127.7% and 127.1% YoY, respectively, driven by higher revenues outpacing expense growth.
ā¢ Total Comprehensive Income: This metric rose by 138.8% YoY, indicating a strong overall improvement in financial health and performance.
Results reflect Garware Hi-Tech Filmsā ability to maintain strong revenue and profit growth despite rising expenses, demonstrating effective cost management and increased operational efficiency.
Disclaimer:- invested
10 Likes