Garware Technical Fibres Ltd, a company engaged in textile products, skyrocketed to hit a 20% upper circuit alongside a new 52-week high on November 18, Monday. The performance comes after the company announced a hefty bonus issue plan in the ratio of 4:1. The company plans to deliver the bonus benefits within two months.
Garware Technical Fibres Share Price:
On November 18, despite a broader bear market trend, Garware touched a new 52-week high and a 20% upper circuit of Rs 4,741.80 apiece, before correcting and ending at Rs 4691.20 apiece up by 18.72% on BSE. The company's market cap is around Rs 9,313.52 crore. YTD, the stock jumped by 40% on BSE.
Garware Technical Fibres Bonus Issue:
The company has received approval from the board of directors for the issuance of 7,94,12,676 bonus equity shares of INR 101- (Indian Rupees Ten) each, credited as fully paid to the eligible members of the Company holding equity shares of INR 101- (Indian Rupees Ten) each of the Company whose names appear in the register of members and the beneficial records of the depositories on the Record Date.
These bonus shares will be issued in the proportion of 4 new fully paid-up equity shares of Rs 10-(Indian Rupees Ten) each for every 1 (one) existing fully paid-up equity share of Rs 10- (Indian Rupees Ten) each held by them.
Hence, the bonus issue ratio is 4:1.
The company plans to credit these bonus shares to the respective demat accounts of the eligible Shareholders within two months from the date of the Board approval on or before January 13, 2024.
Garware Technical Fibres Results:
In Q2FY25, the company's net sales increased by 28% to Rs. 420.6 Cr in Q2FY25 as compared to Rs. 328.3 Cr in Q2FY24, while its net profit increased by 26% to Rs. 66.0 Cr in Q2FY25 as against Rs. 52.5 Cr in the corresponding period of FY24.
Vayu Garware, CMD, Garware Technical Fibres said, "As expected, Q2 FY25 has shown a good profit growth of -30% over the previous year Q2 FY24 mainly on account of a strong performance from Aquaculture and Geosynthetics businesses which both grew substantially. We were also able to maintain significant PBT margins in the range of -20%."
Garware added, "First half of FY25 has been good for the Company overall, GTFL profit before tax grew by 20% in HI FY25 against the previous year H1FY24. Geo synthetics continued its strong growth in top line and profit during HI FY25.
In H1FY25, the company 's net sales increased by 16%to Rs. 756.8 Cr in H1FY25 as compared to Rs. 654.0 Cr in H1FY24. While the company's net profit after tax has increased by 18% to Rs. 112.7Cr in H1FY25 as against Rs. 95.4 Cr in the corresponding period of FY24. EPS for HI FY25 is at Rs. 56.6 this is a growth of 21%over HI FY24.
Looking ahead, the CMD added, "We expect the continue the growth momentum during the second half of the year FY25"
About Garware Technical Fibres:
Garware Technical Fibres Ltd is a leading player in Technical Textiles specializing in providing customized solutions to its customers worldwide. Globally, the company is known for its applied innovation in the fields of sports, fisheries, aquaculture, shipping, agriculture, coated fabrics and geo-synthetics. The company's products are manufactured in state-of-the-art facilities at Wai and Pune and marketed in more than 75 countries.
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