Garware Hi-tech Films Limited · NSE:GRWRHITECH
Garware Hi-tech Films — Q1 FY25 Earnings Presentation
44 slides from Garware Hi-tech Films's earnings presentation, Aug 8, 2024
Slide 1: Exchange filing cover letter
August 08, 2024 The Compliance Manager The Manager, Listing Department BSE Limited National Stock Exchange of India Corporate Relationship Department, Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, Plot No. C/1, G Block, Dalal Street, Bandra-Kurla Complex, Mumbai 400001. Bandra (East), Mumbai 40
Slide 2: Media Release: Q1 FY25 results
Media Release Mumbai, August 8, 2024: Garware Hi-Tech Films Limited (GHFL), a global manufacturer of Solar Control Films, Paint Protection Films and other Specialty Polyester Films, announced its FINANCIAL RESULTS FOR THE QUARTER ENDED JUNE 30, 2024. Highest ever Consolidated Quarterly PBT crossing
Slide 3: Media Release: management comments and business updates
Media Release Commenting on the results, Dr S. B. Garware, Chairman and Managing Director, Garware Hi-Tech Films Limited said: " We have entered FY25 with an exceptional Q1 performance, propelled by the continued momentum in Solar Control Films and Paint Protection Films. Our strategic focus on inno
Slide 4: About Garware Hi-Tech Films Limited
Media Release About Garware Hi-Tech Films Limited (GHFL): GHFL (BSE: GRWRHITECH 500655 | NSE: GRWRHITECH), is one of the few companies in the world to have a vertically integrated chip-to-film operation in Chhatrapati Sambhaji Nagar (Aurangabad), Maharashtra, India, with state-of-the-art facilities
Slide 5: Garware Hi-Tech Films Ltd. Investor Presentation Q1 FY25
Garware Hi-Tech Films Ltd. (GHFL) Investor Presentation Solar Control Films Paint Protection Films Q1 FY25 UV & Total Heat Safety & Enhanced Scratch Rejection Infrared Privacy Aesthetics Resistance Hydrophobic Aug 2024 Rejection 1
Slide 6: Safe Harbour
Safe Harbour Our discussion may include predictions, estimates or other information that might be considered forward-looking. While these forward-looking statements represent our current judgment on what the future holds, they are subject to risks and uncertainties that could cause actual results to
Slide 7: Contents
Contents Automobile Window Architecture Safety 3 01 Q1 FY25 Highlights 02 Company Overview Product Overview ⁻ Solar Control Films (SCF) 03 ⁻ ⁻ Paint Protection Film (PPF) Consumer Driven Industrial Products (IPD) Paint Protection Lidding film Industrial 04 Marketing & Branding Initiatives 33
Slide 8: Q1 FY25 Highlights
HITECH FILMS: | GARWARE
Slide 9: Message from the CMD
Message from the CMD Dr. S B Garware Chairman and Managing Director “We have entered FY25 with an exceptional Q1 performance, propelled by the continued momentum in Solar Control Film and Paint Protection Film segments. Our strategic focus on innovation and market expansion, along with our commitmen
Slide 10: Robust Performance | Highest Ever Quarterly PBT Crossing ₹100 crores
Robust Performance | Highest Ever Quarterly PBT Crossing ₹ 100 crores Q1 FY25 Consolidated Performance (YoY) Revenue from Operations (₹ cr) EBITDA (₹ cr) & EBITDA Margin PBT(₹ cr) & PBT Margin PAT(₹ cr) & PAT Margin 25.0% YoY 78.7% YoY 100.7% YoY 102.2% YoY 474.5 27.4% 24.8% 18.6% 19.2% 15.4% 130.0
Slide 11: Quarterly Consolidated Performance Trend – Q1 FY25
Quarterly Consolidated Performance Trend – Q1 FY25 Revenue from Operations (₹ Cr) Comments Q1 FY25 vs Q1 FY24 Revenue from Operations stood at ₹474.5 crore, up 25.0% YoY and 6.2% QoQ. Growth primarily fuelled by robust sales momentum in SCF and PPF, apart from product expansion across all segments
Slide 12: Consolidated Annual Performance
Consolidated Annual Performance Revenue from Operations (₹ Cr) EBITDA (₹ Cr) EBITDA Margin PAT (₹ Cr) Net Working Capital turnover ratio (x) Export Domestic PAT Margin 23.6% 21.3% 400 925 989 1,303 1,438 1,677 18.8% 18.7% 19.1% 350 6.0 12.7% 12.8% 20.0% 22% 11.6% 12.1% 26% 27% 4.7 300 31% 30% 4.4 22
Slide 13: Diversified Portfolio driving GHFL's Success
Product Overview Diversified Portfolio driving GHFL's Success Consumer Product Division (CPD) Industrial Product Division (IPD) VAP Mix – Q1 FY24 VAP Mix – Q1 FY25 Value Added Products (VAP) Value Added Products Commodity 17% 12% • Automotive Solar Control Film • Shrink Film • Thermal Lamination • A
Slide 14: New Initiatives and Developments
New Initiatives and Developments 10 1. Product range expansion : ₋ Launch of high-end lidding films, available in multiple thicknesses and featuring anti-fog properties, peelable seals, and UV ink receptive coatings, perfectly suited for packaging meat, dairy, and yogurt products ₋ Launch of Titaniu
Slide 15: Company Overview
G canware 2 Company Overview
Slide 16: Product Strategy | Premium Market Positioning
Product Strategy | Premium Market Positioning Our 'Global' and 'Garware' brands target the high-end market, setting them Tier 1 Brand Technology Edge apart from international competitors in the premium and economy categories. A premium global brand, Winner of Prestigious award ranking top 3 in USA &
Slide 17: Business Strategy | Four Pillars
Business Strategy | Four Pillars Customer-Centric Growth Value-Added Manufacturing Strengthening Domestic Fostering Sustainable Annual Specialty films Excellence Market Share Financial Performance ➢ Manufacturers & suppliers of ➢ Fully vertically integrated chips-to- ➢ Solid sales & marketing strate
Slide 18: Transitioned into a Value-Added Product Business
Transitioned into a Value-Added Product Business GHFL has ventured into value-added products like Solar Control, Paint Protection and Shrink Film, resulting in better recovery of revenue, and improved margins. FY17 & Prior 11% FY18 & Beyond 20% 52% ➢ GHFL was one of largest exporter of polyester ➢ U
Slide 19: Geographical Strategy | Mature Market with High-end Customer Base
Geographical Strategy | Mature Market with High-end Customer Base Global Presence India, USA, UK India Tinters across 5000+ the globe 90+ Countries 3 Sales Offices 2 Manufacturing locations Export Revenue Europe 76.5% Share in Q1 FY25 Q1 FY25 Revenue Share 11.4% ➢ Strong global distribution network
Slide 20: GHFL Manufacturing footprints
GHFL Manufacturing footprints 16 Pioneering the Future of Specialty Polyester Films Fungible Capacity 2 Fully Vertically integrated Manufacturing Locations ➢ Crucial for improving sales mix & responding to stable demand ➢ Enables shift between value-added and commodity products Waluj Chikalthana Chh
Slide 21: R&D | Innovation at our core
R&D | Innovation at our core 2023 – Top 50 innovative company award • Recognition by Indian Dep. of Scientific & Industrial Research (DSIR) • TPM Excellence Award by JIPM VAP for stable revenue and high margin growth • BRCGS Certified (Food & Packaging Grade) 50 dedicated R&D Team members (Technical
Slide 22: Environmental Stewardship: Customer Centric ESG Commitment
Environmental Stewardship: Customer Centric ESG Commitment Our sophisticated and well-designed programs are well aligned with the UN's Sustainable Development Goals 2030 of Climate Action (SDG #13). Energy Efficiency Zero Waste Achievement Advanced Waste Management Circular Economy Integration ❑ Tra
Slide 23: Empowering Communities, Building Sustainable Futures
Empowering Communities, Building Sustainable Futures Community Engagement Health and Education Youth Empowerment Rural Transformation & Development Support Establishment of two Garware Community ❑ Collaboration with National Bal ❑ Addressing water scarcity ❑ Conducting health and hygiene Centres in
Slide 24: Product Overview
20 3 Product Overview 20
Slide 25: Solar Control Films (SCF)
21 Solar Control Films (SCF) Automobile and Architectural Film 21
Slide 26: Key Growth Drivers - SCF
Solar Control Film Key Growth Drivers - SCF Untapped domestic market Product extension in SCF business ❑ Reintroduction of GHFL ‘safety glazing’ window film in India ❑ Expected robust growth in complementary architectural film ❑ Fully compliant with 50/70 VLT government regulations segments – launch
Slide 27: Architectural Film | Next Engine of Growth for SCF
Solar Control Film Architectural Film | Next Engine of Growth for SCF Unique range Privacy Films Sun Control Films Safety & Security Films 1• Applied to the inside surface of Glass 1• Holds broken glass shards intact & Windows minimizes chances of injuries 2• Reduces solar heat, UV light & glare, 2•
Slide 28: Architectural Film | Products Designed to Meet Various Customer Requirement
Solar Control Film Architectural Film | Products Designed to Meet Various Customer Requirement TSER (Heat Rejection) TSER: Higher the better Few illustrative SKUs from all series VLT: Depends on usage 100% 80% 60% 40% 20% 0% 20% 40% 60% 80% Visible Light Transmission (VLT) Spectrally Selective Films
Slide 29: Recent Launches | Spectra Pro & DecoVista Series
Solar Control Film Recent Launches | Spectra Pro & DecoVista Series Spectra Pro Architectural Films DecoVista Series Decorative Film Designed for high heat rejection & high VLT Elevate the Style of Your Homes and Offices A product that provides high performance, maximum clarity and impeccable A New
Slide 30: Our Global Marquee Clients in Architectural Films
Our Global Marquee Clients in Architectural Films Bank of Brazil Imperial College, London Taj Amer, Jaipur New Project @ A large mall in Mohali Punjab New project at one of the largest malls in Mohali, Luton Changi Airport, Bengaluru Airport, Punjab, supplying of architectural films. This property A
Slide 31: Paint Protection Films (PPF) Automobile
27 Paint Protection Films (PPF) Automobile 27
Slide 32: Key Growth Drivers - PPF
Paint Protection Film Key Growth Drivers - PPF Under penetrated and untapped PPF market in India New PPF Capacity ❑ Indian market is in the early stages of “building awareness” - scratch To cater growth demand for PPF, Board of Directors resistance, hydrophobicity, self-healing, and more benefits ap
Slide 33: PPF Titanium with lifetime warranty
Paint Protection Film PPF Titanium with lifetime warranty 29 Aim is to reinforce Garware's reputation for delivering high quality and best-in-class PPF 1 2 Exclusively available only at Lifetime warranty to be GAS studios provided to Garware GAS customers 3 4 Best-in-class PPF quality, Highest quali
Slide 34: Domestic PPF | Driven by 650+ OEM Dealerships and 120+ channel partners
Paint Protection Film Domestic PPF | Driven by 650+ OEM Dealerships and 120+ channel partners Garware Application Studios (GAS) : Detailing and Car care Studios for exclusive access to Garware's premium safety glazing films and PPF Introducing a D2C channel of certified and trained applicators Aim t
Slide 35: Industrial Product Division (IPD)
Industrial Product Division (IPD) Shrink, Low Oligomer, Release Liners, Packaging etc. 31
Slide 36: Industrial Products Division | Integral to GHFL's leadership in Poly-films
Industrial products Division | Integral to GHFL’s leadership in Poly-films Thermal Lamination Shrink Film Provide heat insulation, energy efficiency, increased Wrapping & labelling plastic bottles, containers, cans, comfort & protection in various applications like Book cups, etc. of various sizes c
Slide 37: Shrink Films: Key Growth Drivers
Shrink Films Key Growth Drivers India's Rising Role in Shrink Film Manufacturing Global shrink film is expected to grow at a CAGR of 5.4% from 2022 to 2031 India has a great scope to emerge as a sizable player in shrink film manufacturing as part of China-plus-one diversification strategy (in US$ bi
Slide 38: Marketing, Branding & Network Expansion Initiatives
4 Marketing, Branding & Network Expansion Initiatives 34
Slide 39: Improve India Revenue Mix | PPF & SCF business
Improve India Revenue Mix | PPF & SCF business Marketing Strategy for Exponential Domestic Market Growth from SCF and PPF Reintroducing Safety Glazing Film with favorable shift in Indian Regulations, leveraging local manufacturing and strong brand recall Accelerated expansion of the Garware Applicat
Slide 40: Expansion | Targeting Tier-2 & Tier-3 Cities in India
Expansion | Targeting Tier-2 & Tier-3 Cities in India Expanding GAS Studio network excellence with recent GAS launches across India ❑ Nashik ❑ Azamgarh ❑ Faridabad ❑ Noida ❑ Agra ❑ Dehradun ❑ Jammu ❑ Bhopal ❑ Srinagar ❑ Ahmednagar 36
Slide 41: Events, Exhibitions, & Other marketing initiatives
Events, Exhibitions, & Other marketing initiatives Plex Council Expo Detailer Fest Brazil 2024 Digital Campaigns through Regular participation across various events, 2024 Influencer programs and other seminars and exhibitions social media promotion ❑ Plex Council Expo 2024 ❑ Detailer Fest Brazil 202
Slide 42: Building Robust Sales Network | Installation Training for Applicators
Paint Protection Film Building Robust Sales Network | Installation Training for Applicators Ensure a High-Quality Finish Cutting-Edge Training Center Deeper Penetration Applicator Network expansion Established the Garware training Starting with region wise (Tier 2 deliberate endeavor, recognizing ce
Slide 43: Recognition Through Awards & Certifications
Recognition Through Awards & Certifications 1990 2019 2019 2020 2023 DSIR APR PCR EU Regulation BRC Global Certifications Accreditation ISO 9001:2015 Certification for Migration Standard R&D Centre is Globally recognized Sustainability & Comply with migration For packaging & accredited by the standa
Slide 44: Thank You
Thank You Garware Hi-Tech Films Limited. Ernst & Young LLP CIN: L10889MH1957PLC010889 Investor Relation Advisory ir@garwarehitech.com Vikash Verma Sumedh Desai Vikash.Verma1@in.ey.com Sumedh.desai@in.ey.com 40
Garware Hi-Tech Films — Q1 FY25 Earnings Presentation on 6ix