India's Garware Technical Fibres posts 12% net sales growth in 9M FY23

The net profit after tax increased by 2 per cent to ₹112.5 crore in 9M FY23 as compared to ₹110.9 crore in the corresponding period of FY22. The EPS for 9M FY23 also increased by 2 per cent to ₹54.58.

In the third quarter (Q3) of FY23, Garware Technical Fibres’ net sales decreased by 11 per cent to ₹274.6 crore, as compared to ₹308.1 crore in Q3 FY22, the company said in a press release.

The profit before tax for Q3 FY23 decreased by 9 per cent to ₹46.6 crore as compared to ₹50.9 crore in the same period of last year. The net profit after tax for Q3 FY23 decreased by 4 per cent to ₹36.6 crore, as compared to ₹38.1 crore in the corresponding period of FY22. The earnings per share (EPS) for Q3 FY23 also decreased by 4 per cent to ₹17.74.

Vayu Garware, chief managing director, Garware Technical Fibres Ltd, said: "The current quarter results have been impacted due to delay in orders from our customers in the industrial and sports businesses on account of recessionary pressures in Europe and USA. We saw customers adjusting stocks in Q3 significantly. We expect this to be short term in nature and will get corrected from Q1 FY24. There was an offset to some extent by strong order flow from Chile and Scotland.

“Aquaculture business, focused on our new innovative products like X18 and CFR, form major customers there. These products are allowing customers to benefit from operational savings which would otherwise be difficult. We have been able to maintain margins during the current quarter and expect that to continue. We look forward to a better fourth quarter with current visibility.”

Fibre2Fashion News Desk (DP)