Multibagger sets record date for stock buybacks, sales up 26% in Q2FY23

The Company in a stock exchange filing today said that “in accordance with the provisions of Regulation 30 of LODR Regulations of SEBI, read with SEBI circular bearing reference number CIR/CFD/CMD/4/2015 dated September 9, 2015, it is to inform That the Board of Directors of the Company has considered and approved the proposal for buyback of fully paid-up equity shares of the Company up to 2,40,000 (Two Lakh Forty Thousand) in the Board meeting held on 21st October, 2022. Value of INR 10/- (Indian Rupees ten only) (“equity shares” and such buyback “buyback”) from all shareholders/ beneficial owners of equity shares of the company, including promoters and members of the promoter group, through the “Tender Offer” route, Indian Using the mechanism for acquisition of shares through a stock exchange as prescribed under the Securities and Exchange Board (Buy-back of Securities) Regulations, 2018, amended (“Buyback Regulations”) and such other circulars or notifications issued by the Securities and Exchange Board of India The Board of Exchange and the Companies Act, 2013 and the Rules made thereunder, as amended from time to time, INR 3,750/- – (Indian Rupees Three Thousand Seven Hundred Fifty Only) per equity share price (“Buyback” Offer Price”), payable in cash, aggregating to an amount not exceeding INR 90,00,00,000/- (Indian Rupees Ninety Crore only) which includes the expenses incurred for the buyback. Taxes such as brokerage, cost, fees, turnover charges, buyback tax, securities transaction tax and goods and services tax (if any), stamp duty, advisory fee, printing and dispatch expenses and other incidental and related expenses and charges (“Buyback Offer “Size”). The resultant equity shares to be bought back at the buyback offer price are 2,40,000 equity shares, representing 1.16% of the total equity shares in the total paid-up equity share capital of the Company as on the date of the Board meeting. As on March 31, 2022. The size of the buyback offer represents 9.57% and 9.86% of the aggregate of the Company’s fully paid-up capital and free reserves as of March 31, 2022, as per the latest Standalone and Consolidated Audited Financial Statements of the Company. In terms of Regulation 42 of SEBI LODR Regulations and Regulation 9(i) of Buyback Regulations, the Company has fixed Friday, the 4th November, 2022 as the record date for determining the eligibility and the names of the eligible shareholders/ beneficial owners to whom Offer letter will be sent and will be requested to participate in the buyback. Who would be eligible?

On a consolidated basis, the company’s net sales grew 26.3% YoY to Rs. 355.9 crore in Q2FY23 as compared to Rs. 281.8 crore in the second quarter of FY12 and the Profit Before Tax (PBT) grew 15.5% year-on-year to Rs. 61.0 crore in Q2FY23 as compared to Rs. 52.8 crore in the same period last year. The Net Profit After Tax (PAT) of the company grew by 16.8% yoy to Rs. 47.7 crore in Q2 FY23 as against Rs. 40.8 crore in the corresponding period of FY22. The EPS for Q2 FY23 stands at Rs. 23.17 This is an increase of 16.8% over Q2 FY12, the company said.

According to Garware Technical Fibers, its net sales in the first half of FY23 grew by 25.8% to Rs. 660.4 crore from Rs. 524.9 crore in the first half of FY22. Net Profit After Tax (PAT) up 4.3% to Rs. From Rs 75.9 crore in HI FY23. 72.8 crore in the same period of FY22, while Profit Before Tax (PBT) grew 4.2% to Rs. From Rs 98.2 crore in HIFY23. 94.1 crore in the same period last year. HI EPS for FY23 is Rs. 36.84, an increase of 4.3% over HI FY22.

Mr. Vayu Garware, CMD, Garware Technical Fibers Ltd. said, “We were able to deliver a decent operating performance in Q2FY23. With easing of export supply chain challenges, revenue grew by 26% and operational EBITDA by 22 per cent. % up to Q2FY22. We were also able to bring down margins to near normal levels in Q2. PBT grew to 17.1% of sales in Q2 FY23 from 12.2% in Qt FY23. This also led to higher inventory cost from the previous quarter As the high cost of export freight continued in Q2 of FY23, the reduction in raw material cost as well as reduction in freight rates from the level of the previous quarter should be positive in the second half of the year “

Shares of Garware Technical Fibers Limited closed today 3,458.00 each, up 1.26% from previous close 3,414.95. In the last 5 years, the stock has given a multibagger return of 266.88% and in the last 3 years the stock has given a multibagger return of 201.38%. In the past 1 year, the stock has fallen 1.27%, but on YTD basis, the stock is up 5.95% so far in 2022.