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Garware Technical Fibres Ltd.

BSE: 509557 | NSE: GARFIBRES |

Represents Equity.Intra - day transactions are permissible and normal trading is done in this category
Series: EQ | ISIN: INE276A01018 | SECTOR: Textiles - General

BSE Live

Jan 17, 16:00
3303.30 -20.20 (-0.61%)
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  • Bid Price (Qty.)

    3307.00 (2)

  • Offer Price (Qty.)

    3322.00 (50)

NSE Live

Jan 17, 15:54
3300.50 -21.75 (-0.65%)
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    3300.50 (33)

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Annual Report

For Year :
2018 2017 2016 2015 2014 2013 2012 2011 2003

Chairman's Speech

Dear Shareholders,

I am happy to report that your Company recorded impressive performance in the financial year (FY) 2016-17.

Maintaining the momentum of growth recorded in the past few years, your Company achieved a turnover of Rs, 868.72 crores, and convincingly crossed the milestone of earning over Rs, 100 crores as profit before tax (PBT). Your Company''s PBT in FY 2016-17 was Rs, 121.83 crores, 40% higher than the figure recorded in the previous year. The return on capital (net worth) also crossed the milestone of 25%.

Considering the performance, your Board of Directors has recommended a dividend at Rs, 3.50 (35%) per share and a special one-time dividend at Rs, 1.50 (15%) per share, to commemorate the completion of 40 years of the Company. The aggregate dividend is thus Rs, 5 (50%) per share.

Significantly, your Company attained new heights despite hardening global commodity prices and an uncertain geo-political environment. We could aggressively tackle these challenges because, over the years, we have established strong foundations for sustainable growth. Our diversified portfolio and presence across geographies gives us the resilience to weather adverse conditions in particular segments or markets. Through focus on application-oriented innovation, we are able to add further value to existing customers and also tap new markets.

In the year under review, the Indian economy continued to grow at an impressive rate. A relatively good monsoon led to an increase in the agriculture growth-rate. However, this could not translate into demand for our products due to delays in subsidies and various regulatory issues. Growth in the industrial sector was moderate. The inflation rate remained fairly stable.

Our new and innovative products for the domestic fisheries sector received good response, and we were able to record large increases in volumes of sale, which also contributed to our bottom line. The geo-synthetics division also made notable contributions, by securing some large orders that were matched by high-quality execution skills.

The global economy was marked by some signs of recovery. Short-term fluctuations in the rupee were an issue of concern but your Company could meet this challenge comfortably due to its conservative hedging policies. Focusing on markets for new products introduced in the last few years, your Company recorded increases in export sales volumes as well as profits. Your Company achieved a remarkable breakthrough in the largest aquaculture market in the world, and initiated a trend to move away from use of nylon to polyethylene products in this industry segment.

Your Company''s performance was possible due to the collaborative efforts of internal teams working relentlessly towards common goals. We followed up on enquiries speedily, converted them to orders, and then delivered within good lead times with reasonable margins. In FY 2015-16, we had initiated transformations in our plant operations, and in the year under review, we reaped the benefits in terms of significant improvement in uptime. Through planned efforts to enhance our visibility, we improved our customer satisfaction score. Efforts to enrich our employee engagements have become an integral part of our business strategy. This is reflected in significant upward movement on this parameter, according to the findings of an independent survey.

Your Company continues to play the role of a responsible corporate citizen. In the year under review, we contributed towards improvement in school education, by way of infrastructure and education materials, and facilitated better and more accessible health care. We also took significant efforts for protection of the environment.

Looking at the future, your Company''s prospects are positive. In the short term, the effects of the new Goods and Services Tax (GST) regime on distribution channels are uncertain, but we expect this situation to last only for a few quarters, and it would not impact the strength and effectiveness of our core strategy. Likewise, we are confident of addressing the challenge of hardening material costs by offering products that deliver superior value.

With a strong cash-flow position, specific plans for new business lines, and a highly energetic team that is not content on resting on its laurels, your Company is well positioned to maintain growth.

We will continue to work with a strong focus on volumes and profits. We are committed to continuously improve our products and services, work with entrepreneurial zeal, enhance stakeholder value, and enrich our bonds with employees and business partners.

I would like to take this opportunity to thank all our stakeholders for their continued support, which has helped the Company achieve sustainable and profitable growth. I look forward to your continued support in our effort to reach new milestones.

With warm regards,

V. R. Garware

Chairman & Managing Director