Garware Hi-tech Films Limited · NSE:GRWRHITECH
Garware Hi-tech Films — Q3 FY24 Earnings Presentation
55 slides from Garware Hi-tech Films's earnings presentation, Feb 8, 2024
Slide 1: Stock exchange cover letter for investor presentation
February 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, Mumbai 400001. Bandra-Kurla Complex, Bandra (East), Mumbai
Slide 2: Garware Hi-Tech Films Investor Presentation Q3FY24 and 9MFY24
-~~ GLOBA[ •1 Window Films .. ---.'ii.. , ---·-..~, ~ GARWARE' GLOBA[ •1 ~ HI-TECH FILMS Paint Protection Films Garware Hi-Tech Films Ltd. (GHFL) Investor Presentation Q3FY24 and 9MFY24
Slide 3: Contents
Automobile Window Architecture Safety I 2 Contents 01 Q3FY24 Highlights 02 Company Overview 03 Product Overview ⁻ SCF Paint Protection Shrink Industrial ⁻ PPF ⁻ IPD 04 Marketing & Branding Initiatives 05 Annexures
Slide 4: Safeharbor
I Safeharbor 3 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
Slide 5: Q3FY24 Highlights
1 Q3FY24 Highlights HN
Slide 6: Message from the CMD
I Message from the CMD 5 Dr. S B Garware Chairman and Managing Director "The solid performance presented today is a testament to our strategic and unwavering commitment to top-notch quality. Our thoughtful product expansion and meticulous introduction of superior offerings in the past, has laid this
Slide 7: Highest-ever Quarterly Performance
I Highest-ever Quarterly Performance 6 Consolidated Q3FY24 Consolidated 9MFY24 Rs. 1230 cr +13.0% Rs. 62.6 +18.2% Rs. 454 cr +39.9% Rs. 24.1 +83.8% Revenue YoY EPS YoY Revenue* YoY EPS YoY Rs. 231.4 cr +16.3% 18.8 % +50 bps Rs. 84.6 cr +61.2% 18.6 % +247 bps EBITDA YoY 9M FY24 EBITDA Margin YoY EBIT
Slide 8: Quarterly Financial Performance – Q3 FY24 & 9M FY24
I Quarterly Financial Performance – Q3 FY24 & 9M FY24 7 Revenue In cr Q3 FY24 Growth Comments QoQ 14.2% YoY 39.9% ⁻ Q3FY24 Revenues stood at Rs 454 cr, up by 14.2% QoQ and up by 39.9% YoY. 370 395 324 349 380 397 454 9M FY24 Growth ⁻ 9MFY24 Revenues stood at Rs 1,230 cr, up by 13.0% YoY. Q1 FY23 Q2
Slide 9: Earnings Quality: EBITDA Bridge
I Earnings Quality | Robust sales and marketing efforts to yield long-term benefits 8 EBITDA Bridge Comments In cr • The company witnessed a substantial increase in - -7.5 - -7.0 EBITDA driven by significant volume growth in PPF and SCF business. • This achievement is attributable to a robust market
Slide 10: New Initiatives and Developments Q3FY24
New Initiatives and Developments | Q3FY24 9 1. Product range expansion : ₋ World’s first car Rooftop series film kits ₋ ‘Spectrally Selective’ Products for architectural segment ₋ Ceramic Coating complementing PPF products ₋ PPF products range increase from transparent to matte, black and white ₋ Fo
Slide 11: Company Overview
10 2 Company Overview
Slide 12: Business Strategy: Four Pillars
I Business Strategy | Four Pillars 11 Customer-Centric Growth r---------------------------------------------------- !-------------------------------------------------------, ,-----------------------------------------------------, !----------------------------------------------------, :' Value-Added
Slide 13: Transitioned into a Value-Added Product Business
I Transitioned into a Value-Added Product Business 12 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 20% 12% FY18 & Beyond 52% ➢ GHFL was one of largest exporter of polyeste
Slide 14: Product Strategy: Premium Market Positioning
I Product Strategy | Premium Market Positioning 13 Our 'Global' and 'Garware' brands target the high-end market, setting them Tier 1 Brand Exclusive Tech apart from international competitors in the premium and economy categories. A premium global brand, One of only 2 with dyed SCF ranking top 3 in U
Slide 15: Geographical Strategy: Mature Market with High-end Customer Base
I Geographical Strategy | Mature Market with High-end Customer Base 14 Global Presence India, USA, UK India & 3 Sales Offices 2 Manufacturing locations Tinters across 90+ Countries Europe ltd /J,. I D 5000+ the globe Export Revenue D Revenue % 78.3% I Cu 11.9% in 9MFY24 North America !l 46.1% u • ➢
Slide 16: Stable Historical Performance
I Stable Historical Performance 15 Revenue from Operations EBITDA Margin PAT Margin 23.6% 18.8% 12.7%12.8% (INR crores) (INR crores) 21.3% 400 220(INR crores) 11.6% 13.0% 11.8% 18.3% 18.8% 18.7% 350 20.0% 9.3% 167 166 11.3% 11.0% 1,438 1230 16.1% 277 269 300 231.4 170 8.6% l,....a 1,303 234 15.0% 19
Slide 17: Product Overview
16 3 Product Overview
Slide 18: Diversified Portfolio driving GHFL's Success
Product Overview I Diversified Portfolio driving GHFL's Success 17 Consumer Product Division Industrial Product Division • (CPD) • (IPD) Value Added Product Value Added Product Commodity • Automotive Solar Control Film • Shrink Film • Thermal Lamination • Paint Protection Film • Electrical/Electroni
Slide 19: Competitive Advantage - SCF
Solar Control Film I Competitive Advantage - SCF Only company in the world with 18 backward integration and extensive in- ➢ Only company in the world with backward integration (Chip- house manufacturing processes for SCF Premium to-films) Leading Brand ➢ The largest global capacity at one location &
Slide 20: Key Growth Drivers - SCF
Solar Control Film I Key Growth Drivers - SCF 19 Capacity-1 Capacity-2* -------, ,--------- ---------1! 1,800 LSF Untapped domestic market and product diversification for SCF r----------""'. . . . .2,400 LSF . . . . . . . . . -~ ~ : : .,._______ I: I I I ' ' ' ➢ Reintroduction of GHFL ‘safety glazin
Slide 21: Domestic Safety Glazing Film Potential
Solar Control Film I Domestic Safety Glazing Film | Potential ~6-8% of total revenue in 3 years 20 Ensures better visibility and enhanced safety aligned with Central Motor Vehicle Rule Indian domestic market is highly High Under-penetration under penetrated Domestic market has shown higher Increasin
Slide 22: Architectural Film: Next Engine of Growth for SCF
Solar Control Film I Architectural Film | Next Engine of Growth for SCF 21 d A Unique range Privacy Films I Sun Control Films I Safety & Security Films • • 1 Applied to the inside surface of Glass Windows ••1 Holds broken glass shards intact & minimizes chances of injuries • 2• Reduces solar heat, U
Slide 23: Architectural Films: Global Marquee Clients
Solar Control Film Bank of Brazil Imperial College, London Our Global Marquee Clients in Architectural Films Luton Airport, London Changi Airport, Singapore d= GARWARE \::!J HI-Tl'cCH FILMS
Slide 24: Competitive Advantage (PPF)
Paint Protection Film I Competitive Advantage (PPF) 23 ➢ GHFL is the only producer of professional-grade Premium paint protection film Sole Producer (PPF) in India Vertically ➢ A single-source manufacturing facility with in a state-of-the-art, ISO-9001:2015 Integrated certification capable to produc
Slide 25: Key Growth Drivers (PPF)
Paint Protection Film I Key Growth Drivers (PPF) 24 Under penetrated and untapped PPF market in India Installed Capacity – 300 LSF ➢ Indian market is in the early stages of “building awareness” - scratch resistance, hydrophobicity, self-healing, and more benefits Q3FY23 r---- Q3FY24 ---, I I ➢ Low a
Slide 26: Domestic PPF: OEM Dealerships and Channel Partners
Paint Protection Film I Domestic PPF | Driven by 600+ OEM Dealerships and 100+ channel partners 25 Garware Application Studios (GAS) : Detailing and Car care Studios for • exclusive access to Garware's premium safety glazing films and PPF 9 Vile Parle, Mumbai-, CARWARE Introducing a D2C channel of c
Slide 27: Building Robust Sales Network: Applicator Training
Paint Protection Film I Building Robust Sales Network | Installation Training for Applicators 26 Ensure a High-Quality Finish Cutting-Edge Training Center Deeper Penetration Applicator Network expansion Established the Garware training Starting with region wise (Tier deliberate endeavor, recognizing
Slide 28: Case Study: Advanced Adhesives for Superior Protection
Paint Protection Film I Case Study : Product Innovation | Advanced Adhesives for superior protection 27 Problem : Drawbacks of Solution : GHFL’s Advanced Traditional Adhesives Adhesive Properties ➢ Heat sensitivity: can lose bond strength in extreme heat ➢ Yellowing: reducing the film's clarity and
Slide 29: Industrial Products Division
I Industrial products Division | Integral to GHFL’s leadership in Poly-films 28 Shrink Film Thermal Lamination Wrapping & labelling plastic bottles, Provide heat insulation, energy efficiency, containers, cans, cups, etc. of various sizes increased comfort & protection in various applications like B
Slide 30: Competitive Advantage - Shrink Film
Shrink Films I Competitive Advantage - Shrink Film 29 Product USP Wide variety ➢ 12 variants (under High, Medium and Low Shrink options) powered by a strong focus on R&D Robust entry ➢ Implementing products at customer’s end requires extensive Niche area of Excellent Ease of barrier & trial periods,
Slide 31: Key Growth Drivers - Shrink Films
Shrink Films I Key Growth Drivers 30 IPD Capacity Utilization India's Rising Role in Shrink Film Manufacturing r------· Q3FY23 ·-------, r----- Q3FY24 ·---,I India has a great scope to emerge as a sizable player in shrink film manufacturing as part of I I I I I I I I I I I I I ~71% Utilization I I C
Slide 32: Case Study: Pearl Float, Revolutionizing Sustainability & Protection
Shrink Films 31 I Case Study : Product Innovation | Pearl Float, Revolutionizing Sustainability & Protection Problem : Environmental Impact of Solution : Pearl Float Shrink film, a Traditional Shrinkwrap sustainable alternative ➢ Urgency for Sustainable Alternatives: Traditional PVC based shrink fil
Slide 33: Marketing & Branding Initiatives
32 4 Marketing & Branding Initiatives e •
Slide 34: Innovation Steals the Show: Automechanika and ACE Tech Expo
GHFL's Innovation Steals the Show | Automechanika and ACE Tech Expo 33 ACE Tech Expo GHFL made a splash at the recent ACE Tech Expo, showcasing their cutting- edge architectural film that captivated the attention of builders, real estate developers, and construction companies alike. Their innovative
Slide 35: GHFL in News
GHFL in News | Showcasing Top Products at Key Industry Events 34 Read More – Link Read More – Link Read More – Link Read More – Link
Slide 36: Digital Campaigns: Making Waves in Social Media
Digital Campaigns | Making Waves in Social Media 35 Influencer Activity Instagram Link – Link Instagram Link – Link Instagram Link – Link Instagram Link – Link
Slide 37: Improve India Revenue Mix: PPF & SCF business
Improve India Revenue Mix | PPF & SCF business 36 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 Appli
Slide 38: Implementing Domestic Market Action Plan
Implementing Domestic Market Action Plan 37 Focused sales-burst program supported by our channel partners Crack team driven on- Sharp digital Business development Pilot, Scale Up & ground sales effort communication with our Channel partners Accelerate Deploying agile and Executing precise and Robust
Slide 39: Impactful Results: Prior Marketing and Sales Initiatives
Impactful Results | Prior Marketing and Sales Initiatives 38 Harnessing our digital platforms to Growth in PPF sales in YTD FY24 vis-à-vis boost customer impressions. 4x our selected measurement period of FY 23 Growth in number of new retail counters SCF 1.9x added in FY 24 compared to selected meas
Slide 40: Past Participations
Past Participations | Major academic events & conferences 39 SEMA Show – November 2023 International WF Conference & Tint-off (Ruby Sponsor) Wide Open Rallies | Sponsorship Social Media Campaigns
Slide 41: Annexure
40 5 Annexure
Slide 42: R&D: Innovation at our core
R&D | Innovation at our core 41 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) Continuous Interaction & 50 dedicated
Slide 43: Product Division Summary - CPD
Product Division Summary - 1 42 CPD Consumer Product Division Automotive Solar Paint Protection Safety Architectural Control Film Film Film Film ➢ GHFL manufactures ➢ Leveraging 6+ decades of expertise ➢ Polyester safety films provide high ➢ GHFL produces a range of automotive films with in polyeste
Slide 44: Product Division Summary - IPD
Product Division Summary – 2 43 IPD Special Industrial Product Division (IPD) Shrink Film Electrical & Electronics Release Liners ➢ GHFL produces shrink films for wrapping ➢ Electrical and Electronics specialty films are ➢ Release liners are a specialty film coated and labeling plastic bottles, cont
Slide 45: Product Division Summary - Commodity IPD
Product Division Summary - 3 44 Commodity Industrial Product Division (IPD) Packaging & Lidding Thermal Lamination Plain Film Metalized Film Film ➢ They type of specialty films that are ➢ Plain films offer excellent ➢ Packaging & Lidding Films are ➢ GHFL produces custom designed to provide heat insu
Slide 46: Solar Control Film: Product Range & Applications
Solar Control Film | Product Range & Applications 45 HIGH PERFORMANCE (HP) WINDOW FILMS Front Windshield Made with high quality metallised films and its tint can be profusely crafted to match customers • ARCTIC COOL SHIELD need. The visibility of these films can be modified according to desired shad
Slide 47: Paint Protection Film: Product Range & Applications
Paint Protection Film | Product Range & Applications 46 Plus Premium PPF Kits Retail – Plus, Premium 180-micron thick film with a 3- Advanced 200-micron thick Customized Kits and Matte year warranty, offers an PPF with a 5-year warranty, Garware paint protection film Finish optically clear, high-glo
Slide 48: Shrink Film: Product Range & Applications
Shrink Film| Product Range & Applications 47 Shrink Films with UV stabilization used in Key Industries dairy industry and vitamin-based Commercialization of 2 beverages to protect them from UV rays. new eco-friendly films ‘Pearl Float’ & Agriculture Food & Beverage Pharmaceutical ‘Solid White’ film
Slide 49: Vertical Integration: A Strategic Advantage
Vertical Integration: A Strategic Advantage Unparalleled Competitive Advantages due to its Vertical Integration ✓ Self Sufficient Eliminates dependency on other manufacturers ✓ Raw material Ensures required and continuous availability of or outside vendors. availability quality raw materials enablin
Slide 50: Foundation for Sustainable Well-being
49 Utilizing 30% PCR materials in shrink film and other film products 1st company in India to introduce recyclable PETG replacing hazardous PVC shrink label films Solar Control films reduce 3-5% fuel consumption and carbon emissions Foundation for Sustainable Well-being Target to reduce 50% of absol
Slide 51: Two Community Centres in the Residential Areas
50 Two Community centres in the residential areas (at Chikalthana & Waluj) helps Contribute towards Society, Rural Development, Environment & Nature.
Slide 52: Recognition Through Awards & Certifications
Recognition Through Awards & Certifications 51 1990 2019 2019 2020 2020 DSIR APR PCR BRC Global EU Regulation Certifications Accreditation ISO 9001:2015 Certification Standard for Migration R&D Centre is Globally recognized Sustainability & For packaging & comply with migration accredited by the sta
Slide 53: Profit and Loss Summary
Profit and Loss Summary 52 Consolidated In Rs. Crores (except EPS) Quarter Ended Nine Month Ended Year Ended Particulars 31.12.2023 30.09.2023 31.12.2022 31.12.2023 31.12.2022 31.03.2023 (Unaudited) (Unaudited) (Audited) (Unaudited) (Audited) (Audited) Revenue from Operations 454 397 324 1,230 1,089
Slide 54: Abbreviations
Abbreviations 53 Acronym Full Form CPD Consumer Product Division IPD Industrial Product Division VAP Value Added Product SCF Solar Control Film PPF Paint Protection Film GAS Garware Application Studio PV Passenger Vehicle D2C Direct to Customer OEM Original Equipment Manufacturer LSF Lakh Square Fee
Slide 55: Thank You
Thank You Garware Hi-Tech Films Limited. Ernst & Young LLP CIN: L10889MH1957PLC010889 Investor Relation Advisory Ashish Samal Vikash Verma Sumedh Desai ir@garwarehitech.com Vikash.Verma1@in.ey.com Sumedh.desai@in.ey.com
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