Garware Technical Fibres clocked good performance in the fourth quarter led by the Fibre and Industrial products segments. Revenues for the quarter grew 4 percent year on year to Rs 371 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) improved by 9 percent year on year to Rs 80 crore. The margins at the EBITDA level improved 90 bps to 21.5 percent. Profit after tax is 11 percent higher at Rs 60 crore.

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In the Synthetic Cordage segment, income was flat at Rs 307 crore, while operating profit margins came in at 24 percent versus 23 percent in the same quarter of last year. In the Fibre & Industrial Products division, revenues jumped 33 percent to Rs 70 crore, while the EBIT margins stood at 13 percent versus 12 percent in the corresponding quarter of last year.

The company witnessed logistics issues during the quarter due to which dispatches of high margin products of aquaculture got delayed. Aquaculture is the most lucrative ̉segment for the company. The quarter also saw new product launches in Chile and Scotland in this segment, which witnessed good traction.

On the contrary, Norwegian aquaculture was soft - affected by a new tax imposed by the Norwegian government, which slowed investments by customers. However, in FY24 since the tax issue is resolved, Norwegian market will start doing better for the company, said Vayu Garware, Chairman and Managing Director at Garware Technical Fibres in an interaction with CNBC-TV18 on June 1st.

Garware is confident on the growth prospects in FY24 and expects a healthy performance during the year. The first quarter of FY24 is expected to clock high double digit revenue growth and maintain 21 percent EBITDA margins.

The company generated free cash flow in FY23 and has shortlisted opportunities for acquisitions in FY24. Alongside, Rs 50 crore will spent on capacity expansion during FY24.

The company plans to double its operations in the next five years. The stock closed 1 percent higher on the exchanges on June 1st, but is 2 percent down in the past one year.

(Edited by : Vahishta Unwalla)