Multibagger stock sets record date for buyback, sales jump 26% in Q2FY23

With a market capitalization of Rs. 7,133.06 crore, Garware Technical Fibres Ltd. is a mid-cap company that engages in the textile industry. The top manufacturer and supplier of ropes, tarpaulins, and nets is Garware Technical Fibres. Since its founding in 1976, the company has grown to become one of India's top competitors in the technical textiles market, with clients in 75 different nations. While declaring its Q2 results the Board of Directors has also announced record date for buyback.

The company said today in a stock exchange filing that “Pursuant to the provisions of Regulation 30 of the SEBI LODR Regulations read with the SEBI circular bearing reference number CIR/CFD/CMD/4/2015 dated September 9, 2015, this is to inform that the Board of Directors of the Company in the Board Meeting held on October 21, 2022, has considered and approved the proposal for buyback of up to 2,40,000 (Two Lakhs Forty Thousand) fully paid up equity shares of the Company having a face value of INR 10/- (Indian Rupees Ten Only) ("Equity Shares" and such buyback "Buyback") from all shareholders/ beneficial owners of the Equity Shares of the Company, including promoters and members of the promoter group, through the "tender offer" route, using mechanism for acquisition of shares through stock exchange as prescribed under Securities and Exchange Board of India (Buy-Back of Securities) Regulations, 2018, as amended (the "Buyback Regulations") and such other circulars or notifications issued by the Securities and Exchange Board of India and the Companies Act, 2013 and rules made thereunder, as amended from time to time, at a price of INR 3,750/- (Indian Rupees Three Thousand Seven Hundred Fifty only) per Equity Share ("Buyback Offer Price"), payable in cash, for an aggregate amount not exceeding INR 90,00,00,000/- (Indian Rupees Ninety Crores only), excluding expenses to be incurred for the Buyback viz. brokerage, costs, fees, turnover charges, taxes such as buyback tax, securities transaction tax and goods and services tax (if any), stamp duty, advisors fees, printing and dispatch expenses and other incidental and related expenses and charges ("Buyback Offer Size"). The resultant Equity Shares to be bought back at the Buyback Offer Price are 2,40,000 Equity Shares, representing 1.16% of the total Equity Shares in the total paid-up equity share capital of the Company as on the date of the Board Meeting and as on March 31,2022. The Buyback Offer Size represents 9.57% and 9.86% of the aggregate of the Company's fully paid-up capital and free reserves as per the latest standalone and consolidated audited financial statements of the Company, respectively, as on March 31, 2022. In terms of the Regulation 42 of the SEBI LODR Regulations and Regulation 9(i) of the Buyback Regulations, the Company has fixed Friday, November 4, 2022 as the Record Date for determining the entitlement and the names of the eligible shareholders / beneficial owners to whom the letter of offer will be sent and who will be eligible to participate in the Buyback."

On a consolidated basis, the company's net sales jumped by 26.3% YoY to Rs. 355.9 Cr in Q2FY23 as compared to Rs. 281.8 Cr in Q2 FY22 and its Profit Before Tax (PBT) grew by 15.5% YoY to Rs. 61.0 Cr in Q2FY23 as compared to Rs. 52.8 Cr in the same period last year. The company's net profit after tax (PAT) has grown by 16.8% YoY to Rs. 47.7 Cr in Q2 FY23 as against Rs. 40.8 Cr in the corresponding period of FY22. EPS for Q2 FY23 is at Rs. 23.17 this is a growth of 16.8% over Q2 FY22, said the company.

According to Garware Technical Fibres, its net sales in the first half of FY23 grew by 25.8% to Rs. 660.4 Cr from Rs. 524.9 Cr in the first half of FY22. Net profit after tax (PAT) climbed by 4.3% to Rs. 75.9 Cr in HI FY23 from Rs. 72.8 Cr in the same period of FY22, while profit before tax (PBT) jumped by 4.2% to Rs. 98.2 Cr in HIFY23 from Rs. 94.1 Cr in the same period the previous year. The EPS for HI FY23 is Rs. 36.84, a rise of 4.3% over HI FY22.

Mr. Vayu Garware, CMD, Garware Technical Fibres Ltd. said, "We were able to deliver a good operational performance in Q2FY23. With easing of the export supply chain challenges, revenue grew by 26% and operating EBITDA grew by 22% as compared to Q2FY22. We were also able to get margins back to close to normal levels in Q2. PBT rose to 17.1% of sales in Q2 FY23 from 12.2% in Qt FY23. This was despite higher inventory costs carried forwarded from the previous quarter as well as continued higher cost of export freights in Q2FY23. The easing of raw material costs as well as freight rates from the last quarter's levels should be a positive in the second half of the year."