Garware Hi Tech Films Reports Strong Financial Performance in Q2 FY24-25

Garware Hi Tech Films, a midcap company in the packaging industry, has recently announced its financial results for the quarter ending September 2024. The company has received a 'Buy' call from MarketsMOJO, indicating positive prospects for investors.

In the second quarter of FY24-25, Garware Hi Tech has shown a very positive financial performance. The company's net sales have grown by 40.1% to Rs 620.58 crore, compared to the average net sales of the previous four quarters at Rs 442.95 crore. This trend is expected to continue in the near term.

The operating profit (PBDIT) for the quarter was the highest at Rs 136.83 crore, showing growth in each of the last five quarters. Similarly, the profit before tax (PBT) has also shown a positive trend, with the highest at Rs 124.47 crore and growth in each of the last five quarters. The same can be seen for the profit after tax (PAT), which has also shown a positive trend with the highest at Rs 104.26 crore and growth in each of the last five quarters.

The company's earnings per share (EPS) for the quarter was the highest at Rs 44.88, indicating an increase in profitability and higher earnings for shareholders. Additionally, the company's cash and cash equivalents have also shown improvement, with the highest at Rs 137.12 crore in the last six half-yearly periods.

However, there are some areas that need improvement for Garware Hi Tech. The operating cash flow for the year was the lowest at Rs 172.11 crore in the last three years, indicating a decline in cash revenues from business operations. The dividend payout ratio (DPR) for the year was also the lowest at 11.43%, showing that the company is distributing a lower proportion of profits as dividends. Lastly, the non-operating income for the quarter was the highest at Rs 13.65 crore, which may not be sustainable in the long run.

Overall, Garware Hi Tech Films has shown a very positive financial performance in the second quarter of FY24-25, with strong growth in net sales, operating profit, and profit before and after tax. With a 'Buy' call from MarketsMOJO, the company's future looks promising for investors.