Who wrote this article?

Shreesh Biradar, Capitalmind's research team.

What does the "Key Takeaways of Garware Wall Ropes' Results:" section say?

Revenue saw a subdued growth due to low international demand, but was compensated to some extent by increase in domestic demand. Operating Margin has improved drastically from 9.50% in Q1FY16 to 12.17% in Q1 current year. This was majorly due to lower cost of raw materials. cost of material consumed accounted for 37.04% of expenses for the current quarter, where as cost of materials was 52.03% of expenses. Synthetic cordage segment contributed 78.45% of the total revenue and has higher operating margin of 16.02% compared to fiber and industrial product segment, which contributed 21.55% revenue with a lower operating margin of 9.93% Other income increased by 3.7 times to 2.47 Crs for the current reported quarter.

What does the "Other Notes:" section say?

The subsidiary, "Garware Environmental Sciences" is yet to commence its operations. The Management expects to see an increase in exports in coming months. Current long term credit rating by ICRA at AA- (upgraded on 14th July 2016 form A+). There was no mention of the potential defense project they might handle.

Garware Wall Ropes Reports 35% Growth in Profits, Subsidiary Yet to Commence Operations: Result Analysis

12 Aug 2016Shreesh Biradar2 min read

Quick Facts

What is "Garware Wall Ropes Reports 35% Growth in Profits, Subsidiary Yet to Commence Operations: Result Analysis" about?
What category is this article in?: Stocks
Who wrote this article?: Shreesh Biradar, Capitalmind's research team.
When was this article published?: Published 12 August 2016.
How long does this article take to read?: 2 min read
What topics does this article cover?: GARWALLROP
What does the "Key Takeaways of Garware Wall Ropes' Results:" section say?: Revenue saw a subdued growth due to low international demand, but was compensated to some extent by increase in domestic demand. Operating Margin has improved drastically from 9.50% in Q1FY16 to 12.17% in Q1 current year. This was majorly due to lower cost of raw materials. cost of material consumed accounted for 37.04% of expenses for the current quarter, where as cost of materials was 52.03% of expenses. Synthetic cordage segment contributed 78.45% of the total revenue and has higher operating margin of 16.02% compared to fiber and industrial product segment, which contributed 21.55% revenue with a lower operating margin of 9.93% Other income increased by 3.7 times to 2.47 Crs for the current reported quarter.
What does the "Other Notes:" section say?: The subsidiary, "Garware Environmental Sciences" is yet to commence its operations. The Management expects to see an increase in exports in coming months. Current long term credit rating by ICRA at AA- (upgraded on 14th July 2016 form A+). There was no mention of the potential defense project they might handle.
What does the "Disclaimer" section say?: Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion. Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.

Garware Wall Ropes has posted an impressive result of 35% growth in net profits QoQ, even with revenue declining by 1.78% QoQ.

Garware Wall Ropes is in the synthetic polymer cordage industry. It manufactures fishing nets, sports nets, coated fabrics, geosynthetics etc. Company has recently ventured into defense sector in supplying camouflage nets, high altitude clothing etc.

Key Takeaways of Garware Wall Ropes’ Results:

Revenue saw a subdued growth due to low international demand, but was compensated to some extent by increase in domestic demand.
Operating Margin has improved drastically from 9.50% in Q1FY16 to 12.17% in Q1 current year. This was majorly due to lower cost of raw materials. cost of material consumed accounted for 37.04% of expenses for the current quarter, where as cost of materials was 52.03% of expenses.
Synthetic cordage segment contributed 78.45% of the total revenue and has higher operating margin of 16.02% compared to fiber and industrial product segment, which contributed 21.55% revenue with a lower operating margin of 9.93%
Other income increased by 3.7 times to 2.47 Crs for the current reported quarter.

Garware Wall ropes Q1FY17 Results

Other Notes:

The subsidiary, “Garware Environmental Sciences” is yet to commence its operations.
The Management expects to see an increase in exports in coming months.
Current long term credit rating by ICRA at AA- (upgraded on 14th July 2016 form A+).
There was no mention of the potential defense project they might handle.

The stock closed 2.9% below the opening price on the results day, closing at 469.75. Results were announced post market hours.

Trailing P/E stands at 15.34 for the previous close price of Rs 469.75.

Disclaimer

Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.

Disclosure: The authors at Capital Mind have positions in the market and some of them may support or contradict the material given above, or may involve a direction derived from independent analysis.