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23rd November 2017, Wai

Garware-Wall Ropes records profit increase

Garware-Wall Ropes, India's leading player in the technical textiles sector and a pioneer in the geo-synthetics space, has announced its financial results for the quarter and half year that ended on 30 September 2017. The company recorded a 17.3% increase in net profit in the half year 2017, which reached Rs. 54.1 cr. The rise in net profit in the second quarter constituted 6.9%.

Net sales in the second quarter of 2017 were reduced by 8.9% to Rs. 206 cr, compared to Rs. 226.1 cr in the same period last year. Profit before tax grew by 7.6% to Rs. 41.5 cr, versus to Rs. 38.5 cr in the same quarter last year. Net profit after tax has grown to Rs. 28.2 cr in the quarter, against Rs. 26.3 cr in the corresponding period of the previous year. Finally, EPS for the period is at Rs. 12.87, showing a growth of 6.9% over the same quarter last year.

The company is known for its innovation in the field of fisheries, aquaculture, shipping, sports, agriculture, coated fabrics and geosynthetics. © Garware-Wall Ropes

In the first half of 2017, net sales grew by 1.3% to Rs. 449.2 cr, compared to Rs. 443.6 cr in the previous year. Profit before tax grew by 19.3% to Rs. 79.9 cr, compared to Rs. 67.0 cr in the same period last year. Net profit after tax has grown by 17.3% to Rs. 54.1 cr, compared to Rs. 46.2 cr in the corresponding period of the previous year. And EPS for the period stood at Rs. 24.74, an increase of 17.3%.

“The second quarter is our domestic centric quarter,” said Vayu Garware, CMD, Garware-Wall Ropes. “In this period, domestic fisheries contribute to a large proportion of the overall sales. As has been informed in previous months, we have been seeing a short-term disruption in our domestic business on account of GST implementation, more particularly in the Fisheries sector. The distribution channel had not geared up for GST on time and the increased tax rate on Fishnets had put significant inflationary pressure on the end consumers.

“However, the recent reduction in GST rates on Fishnets and some Agriculture products is good news and is expected to impact demand positively and get secondary sales back on track. Nevertheless, we have been able to continue the healthy trend of improving our EBIDTA margins which increased to 20.5%, thereby allowing us to increase overall profit before tax by 19.3% for the half year. Our international markets continue to do well with a strong order book for our differentiated product portfolio and we expect to resume our normal profit growth from the third quarter.”

Garware-Wall Ropes is an ISO 9001:2008 certified company. Established in 1976, the company is a leading player in technical textiles, specializing in providing customized solutions to the cordage and infrastructure industry worldwide.

An international player, the company is known for its innovation in the field of fisheries, aquaculture, shipping, sports, agriculture, coated fabrics and geosynthetics. GWRL products are manufactured in state-of-art facilities at Wai and Pune (both in Maharashtra, India) and are marketed in more than 75 countries.

www.garwareropes.com

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