Garware Technical Fibres Ltd

CONNECTING GLOBALLY, GROWING LOCALLY

Dear Shareholders,

I am pleased to present our annual report for the financial year 2024-25. Reviewing our performance during the year and our future prospects, I am happy to report that we have made significant strides in strengthening our market position and executing our strategic plans. During the year, the global business environment was marked by moderate to strong demand across various application segments and geographical regions. In the aquaculture industry, which has been our largest business segment in recent years, there was a strong demand for our innovative products that offer significant operational cost savings, environmental sustainability, and ease of use. Simultaneously, the market for our geosynthetic solutions saw growing momentum due to demand from infrastructure and environmental protection projects. This trend was evident both in the domestic and international markets. Overall, there was a marked preference for our top-tier, value-added solutions backed by demonstrated capability to meet specific requirements, which led to improved margins.

Responding to the opportunities, we achieved a healthy bottom-line performance, underpinned by a strong cash-flow position. I am proud to report that we exceeded the profit after tax (PAT) milestone of Rs. 2000 million, marking a significant accomplishment in our growth story. Our profitability was driven by closer connectivity with customers in crucial international markets, a major increase in our geosynthetics business, and improved process efficiencies. These growth drivers, along with our solid financial footing, ensure that we are well positioned to navigate challenges and seize opportunities in the future.

I am delighted to report that our geosynthetics division recorded exceptional progress, both financially and technically. We exceeded our revenue and operating profit targets. Our international presence was strengthened with key projects, including coastal protection and river training solutions in Central America. In the domestic market, we reinforced our expertise in reservoir lining and landfill capping. The completion of a complex project to control river erosion, in the face of severe geographical challenges, underscored our resilience and commitment to address customer needs.

Additionally, in line with our strategy to refocus on the domestic market, we saw significant growth in our domestic value-added products.

We earned total revenue of Rs. 1325 crores for the year ended 31st March 2024, an increase of 2% over the previous year. Consolidated operating earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 22% to touch Rs. 315 crores. Consolidated profit before tax was Rs. 272 crores, an increase of 22% over the previous year. Our Board of Directors has declared an equity dividend of 30% amounting to Rs. 3.00 per share.

Looking ahead, our focus remains on profitability, by broadening our geographic reach and product portfolio with value-added solutions. There are several promising signs of success. We have received a positive response in key markets for our non-salmon offerings, indicating strong potential for growth. In Southern Europe, we are increasing our market share by expanding our reach to new customers and new geographies. Geosynthethics is a high potential growth business for us, and we are focusing on both the Indian market and international expansion. We are enlarging our sports product line and targeting new markets in Southern Europe and South America. While exports will continue to constitute the major part of our business, we are renewing our focus on the domestic market. We plan to expand our range of value-added products, which is expected to increase our margins and strengthen our competitive edge over local suppliers in the coming years. India has been recognized as a key growth economy, and we are realigning our efforts accordingly.

Our commitment to excellence is reflected in all our activities. Our establishments in India have been recognized as a Great Place to Work (GPTW). We are expanding our team overseas, and through key engagement initiatives, we are ensuring that we attract and retain top talent. We are enhancing our manufacturing processes to further optimize our operations and efficiency. Sustainability remains at the core of our strategy, with our solutions aligning with global environmental goals.

Possible supply chain disruptions due to geopolitical conditions present challenges in the near future. However, we are well equipped to deal with these issues, due to our strategic agility and strong financial foundation.

In closing, I would like to extend my gratitude to our dedicated employees, valued customers, and shareholders. Your unwavering support and trust have been crucial to our achievements. As we continue to build on our successes and explore opportunities for growth, I am confident that we will sustain and increase value in the years ahead.