Now Reading: Garware Technical Fibres CEO sees strong Q2 on value products
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Garware Technical Fibres CEO sees strong Q2 on value products
Garware Technical Fibres posted a 31.4% rise in consolidated net sales to Rs 482.4 crore and a 21.5% profit growth to Rs 64.5 crore in Q1 FY27. CEO Shujaul Rehman said the…
The Story in Brief
Garware Technical Fibres posted a 31.4% rise in consolidated net sales to Rs 482.4 crore and a 21.5% profit growth to Rs 64.5 crore in Q1 FY27. CEO Shujaul Rehman said the results reflect innovation in solving customer problems. The company draws 80% of business from value-added products, with aquaculture contributing 35% and geosynthetics growing at 40% CAGR over three years.
Raw material volatility and shipment delays due to West Asia unrest remain key challenges. However, Rehman said value-added margins help pass on costs, with raw materials only 30% of aquaculture costs. The company aims to upgrade its remaining 20% commodity portfolio, has 28-29 patents approved, and targets doubling profits every five years. Capacity utilisation is at 80-85%, with annual capex of Rs 50-70 crore.
The Indian Opinion
The upbeat CEO interview avoids naming specific risks from a global slowdown. If salmon prices fall or infrastructure spending in India slows, the rosy outlook could fray. The test for Garware will come when raw material prices spike sharply, can it keep passing on costs without losing orders? Watch the next quarterly margin numbers for the answer.
Sources (2): businesstoday.in, businesstoday.in (2)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
