Garware Hi-Tech Films in focus after reporting Q3 result; Board approves ₹118 Cr capex

During Friday’s trading session, shares of a global manufacturer of sun control films, paint protection films and other specialty polyester films are in focus, after the company reported Q3 FY25 results and announced the setting up of a TPU extrusion plant with an investment of Rs. 118 crores.

Price Movement

With a market cap of Rs. 7,861 crores, the shares of Garware Hi-Tech Films Limited closed in the red at Rs. 3,383.65 on BSE, down by around 13.4 percent, as compared to its previous closing price of Rs. 3,908.75.

The stock delivered multibagger returns of nearly 113.2 percent in one year, while around 40.3 percent of positive returns in the last six months.

What’s the news

The fluctuations in the share prices were observed after Garware Hi-Tech Films Limited announced the financial results for Q3 FY25, through the recent filings with the stock exchanges.

For Q3 FY25, Garware Hi-Tech Films reported revenue from operations of Rs. 466.4 crores, registering a decline of around 25 percent QoQ from Rs. 620.6 crores in Q2 FY25, but a rise of about 2.8 percent YoY from Rs. 453.6 crores in Q3 FY24.

Revenue from Operations for Q3 FY25 remained stable at Rs. 466.4 crores, an increase of 2.8 percent year-on-year, despite facing industry headwinds and seasonal fluctuations.

The company’s net profit for Q3 FY25 to Rs. 60.8 crores, representing a decline of around 42 percent QoQ from Rs. 104.3 crores in Q2 FY25, but a rise of nearly 8.8 percent YoY from Rs. 55.88 crores in Q3 FY 25.

EBITDA for Q3 FY25 rose to Rs. 93.7 crores, reflecting a rise of 10.7 percent YoY compared to Rs. 84.6 crores in Q3 FY24, while the EBITDA margin surged to 20.1 percent from 18.6 percent, over the same period.

EBITDA grew by 10.7 percent YoY, supported by the sale of value-added products.

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Expansion Plans

The Board of Directors has approved an investment of Rs. 118 crores in a TPU extrusion line at Waluj Plant, Maharashtra, marking a significant expansion in the company’s capabilities. This will be India’s first TPU extrusion facility, reinforcing the company’s commitment to the Make in India initiative.

The project is expected to be completed within 18 months, with a planned capacity of 360 LSF per year, and production is scheduled to commence by October 2026.

The output from this new line will support the input requirements of both the company’s existing and upcoming PPF production lines, ensuring seamless integration into the manufacturing processes while driving cost savings. 

In addition, the new extrusion line will accelerate the company’s R&D efforts and further enhance its value-added product portfolio, thereby strengthening its market position.

Furthermore, in Q3 FY25, the company was granted a new patent for Floatable Shrink Film, further solidifying its leadership and innovation in the industry.

About the Company

Garware Hi-Tech Films Limited is engaged in the business of manufacturing of specialty performance polyester films like sun control window films, paint protection films and a variety of other specialty polyester films such as PET shrink films used for label applications, low oligomer PET films, sequin application films, TV and LCD screen application, packaging applications etc.

Written by Shivani Singh

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