Garware net profit before tax decreases by 10% in Q1MFY23
With good movement of export orders so far in Q2 as well as a recent softening in the raw material, we expect to have a positive second quarter in FY23, says Vayu Garware.
Garware Technical Fibres, a manufacturer of technical textiles for the Indian and global markets, announced its financial results for the quarter ended June 30, 2022.
The highlights of the reports included that the net sales increased by 25% to Rs 304.5 crore in Q1FY23 as compared to Rs 243.1 crore in Q1 FY22. The profit before tax decreased by 10.2% to Rs 37.1 crore in Q1FY23 as compared to Rs 41.3 crore in the same period last year. Net profit after tax has decreased by 11.7% to Rs 28.2 crore in Q1 FY23 as against Rs 31.9 crore in the corresponding period of FY22. EPS for Q1 FY23 is at Rs 13.67 crore this is a degrowth of 11.7% over Q1 FY22.
In a statement, Vayu Garware, CMD, Garware Technical Fibres said, “We witnessed a strongtop line growth during the first quarter. However, the quarter also saw a further increase in raw material and input costs, which have been passed through with a lag. Raw material costs, along with a continuing lack of availability of containers to deliver some of our high margin export sales has temporarily affected the margins for this quarter. Delayed shipments have also caused an increase of inventories as of June quarter end. Thesematerials will be carried forward to Q2 sales.
With good movement of export orders so far in Q2 as well as a recent softening in the raw material, we expect to have a positive second quarter in FY23.