Hello Sir,

Hope you are doing well.

I am not sure if you are aware of Paint Protection Films (PPF), but these are increasingly gaining wider acceptance in India and developed countries.

Garware Hi Tech Films claims to be the 1st producer of professional grade Premium PPF in India.

The company also deals in other value-added films like Sun Control Films (SCF). While I was going through the details of the company, what I found interesting was that management is aiming for Rs 2,500 crore sales in FY 26 against Rs 1,677 crore recorded in FY 24.

Below, we have shared our notes from the Q4 FY 24 con-call of the company to understand the outlook for the business.


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Garware Hi Tech Films – Notes from Q4 FY 24 concall

– Introduction

  • The key driver of this success (FY 24 performance) was our PPF and SCF businesses, which experienced remarkable growth, which is slightly offset by the IPD segment due to industry-wide excess capacity
  • Approximately 78% of our revenue in FY ’24 came from export and around 89% from value-added films

– Paint Protection Films

  • There is lot of enthusiasm for further penetration of PPM films which is like 10% to 12% in advanced countries
  • If we talk of India, when we started, the market penetration was 0.5% only. As we speak, it has crossed 1.5%
  • PPF continues to deliver robust performance, operating at optimal capacity. The PPF business achieved 3x revenue growth in Q4 FY ’24 compared to Q4 FY ’23
  • To meet future demand, the board has approved Rs 125 crore in capital expenditure to establish a new PPF line with a capacity of 300 lakh square feet per annum, which is expected to commence commercial production by Q2 FY ’26
  • So, we expect the same revenues of Rs 350 crores with capacity utilization in 2-3 years
  • We have introduced complete range of products like PPF Plus, Premium, Titanium, Matte, Black and White. This is to cater all segments of customers

– Solar Control Films

  • Our SCF business surged by 67% in Q4 FY ’24 compared to last year, fueled by a combination of factors: favorable global economic conditions, expansion into new markets and the introduction of innovative products like Spectra Pro, DecoVista and Rooftop series
  • We anticipate robust demand growth for both automotive and architectural film segment on a global scale
  • We have created a new business segment with the new team to take architectural business to the highest possible levels
  • Now the excess inventory, the phenomena which was there is not there. So, we are seeing this growth from all around USA, Europe, Russia, China, Far East, Middle East, etc.

– Industrial Products Business

  • Shrink film and other specialty IPD products exhibited steady growth, partially offsetting the decrease in commodity and packaging business
  • Overall, on IPD segment also, we are expecting a bounce back. This year we are seeing a good momentum as we go on into that business

– Garware Application Studio (GAS)

  • They are the franchisee models where we just support them to grow, to stand on their own feet
  • We have done a product launch, which is called Titanium, which is a top range of the product. So, that Titanium product is only available to Garware Application Studio

– Balance Sheet

  • Our balance sheet has zero net debt and a healthy cash reserve of Rs 388 crore

– Guidance

  • My second question was on your guidance of Rs 2,500 crore that you had given in terms of revenues in FY ’26, I suppose. So, that guidance remains, or any change is there? – Yes, we are on track towards that
  • We are expecting like overall to go, to cross like Rs 2,000 crores for sure and the guidance about FY ’26 which we maintain around Rs 2,500 crores




Disclaimer: This is not a recommendation to buy/sell Garware Hi Tech Films. The securities quoted are for illustration only and are not recommendatory.


Best Regards,

Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.com/


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