Garware Technical Fibres Consolidated Net Profit Rises by 12% in FY20

Garware Technical Fibres Ltd. (Formerly Garware-Wall Ropes Ltd.), a leading manufacturer of technical textiles for the Indian and global markets, has announced its financial results for the quarter and twelve months ended 31st March 2020. 

Q4 FY20 Highlights:

* Consolidated Revenue reduced by 13% to INR 253 Cr in Q4 FY20 as compared to INR 290 Cr in Q4 FY19

* Consolidated Net Profit has decreased by 2.5% to INR 36 Cr in the quarter as against INR 37 Cr in the corresponding period of FY19

* Consolidated EPS for Q4 FY20 is at INR 16.32; this is a decline of 2.5% over Q4 FY19

* Standalone Revenue reduced by 16% to INR 244 Cr in Q4 FY20 as against INR 290 Cr in Q4 FY19

* Standalone Net Profit has increased by 100% to INR 73 Cr in the quarter as against INR 37 Cr in the corresponding period of FY19

* Standalone EPS for Q4 FY20 is at INR 33.45; this is a rise of  100% over Q4 FY19

FY20 Highlights:

* Consolidated Revenue reduced by 6% to INR 953 Cr in FY20 as compared to INR 1018 Cr in FY19

* Consolidated Net Profit has increased by 12% to INR 141 Cr as against INR 126 Cr in FY19

* Consolidated EPS for FY20 is at INR 64.22; this is an increase of 12% over FY19

* Standalone Revenue reduced by 7% to INR 945 Cr in FY20 as compared to INR 1018 Cr in FY19

* Standalone Net Profit has increased by 42% to INR 178 Cr in FY20 as against INR 126 Cr in FY19

* Standalone EPS for FY20 is at INR 81.35; this is a rise of  42% over FY19

Management Comments:

Stating his views on the results, Mr. Vayu Garware, CMD, Garware Technical Fibres Ltd. said, “The topline and profit performance for the fourth quarter was subdued due to the impact of the lockdown on account of the coronavirus. Particularly, dispatches of our international sales were significantly impacted despite having a strong order book. Domestic sales from depots around the country could also not take place as planned. While the current Covid-19 pandemic continues to pose significant challenges in the first quarter of this year, since approximately 60% of our business caters to end users who are in food related industries, we are hopeful of a reasonable recovery in the second half of the year subject to any unforeseen issues.”

About Garware Technical Fibres Ltd. (Formerly Garware-Wall Ropes Ltd.): (BSE: 509557 / NSE: GARFIBRES)

Garware Technical Fibres Ltd. (formerly Garware-Wall Ropes Ltd.), an ISO 14001:2015 and ISO 9001:2015 certified company is a leading player in Technical Textiles specializing in providing customized solutions to its customers worldwide. Globally, the company is known for its applied innovation in the field of sports, fisheries, aquaculture, shipping, agriculture, coated fabrics and geo-synthetics. The company’s products are manufactured in state-of-art facilities at Wai and Pune and marketed in more than 75 countries.

Exide Life Insurance in FY 2019-20 Delivers Strong Growth of INR 29 Crs, up 141% in Profits

Exide Life Insurance, a 100% owned subsidiary of Exide Industries, reported a growth of 141% in Profits Before Tax (PBT) at INR 29 Crores in the Financial Year ended March 2020, compared to INR 12 Crores in the previous Financial Year (FY 18-19). This is the eighth consecutive year in which the Company has reported profits.

The Company has continued its emphasis on protection products resulting in the protection business mix increasing from 9% of Annualized Premium Equivalent (APE) in FY 18-19 to 11% in FY 19-20.

The Company has achieved its highest ever Claims Settlement Ratio at 98.15% and has a healthy Solvency Ratio of 210% versus the regulatory requirement of 150%.

Continuing with a very strong track record of declaring bonus payouts to participating policyholders every year since inception, the Company has announced Policyholder Bonus distribution of INR 324 Crores in FY 2019-20, a growth of 13.1% over previous FY.

Commenting on the results, Kshitij Jain, MD & CEO, Exide Life Insurance said, “Our primary focus remains value creation for customers and shareholders. Our long term strategy is to grow new business faster than the industry while continuing to improve on the quality of business.

Our commitment to this philosophy has paid off and our business performance has manifested in superior returns to our policyholders, with us being able to pay bonus to participating policyholders every year since inception. Needless to say we live by our promise and our core brand essence of Lamba Saath, Bharose Ki Baat.”

Policyholder Bonus

Considering the surplus that arose over the Financial Year in the Participating fund, the Company announced policyholder bonus of INR 324 Crores in FY 2019-20, a growth of 13.1% over FY 2018-19

Solvency Ratio

The solvency ratio of the Company stood at 210% as on 31st March 2020, compared to the regulatory requirement of 150%.

Assets under Management

The Company’s Assets under Management (AUM) recorded a growth of 10% over the last financial year and stands at INR 15,795 Crores.

Profit Before Tax (PBT)

During FY 2019-20, the Company recorded Profit Before Tax of INR 29 Crores, compared to INR 12 Crores in FY 2018-19. 

Claim Settlement Ratio

The Company continued its growth journey with ‘Individual Claims Settlement Ratio’ improving to an all-time high (since inception) of 98.15% in FY 2019-20. The Company paid death claims worth INR 213.70 Crores (Individual INR 88.95 Crores and Group INR 124.75 Crores) during the Financial Year 2019-20.

Renewals and Persistency

The Company achieved 12% growth in individual renewal premiums at INR 2,221 Crores with improvement in persistency ratios for 13th month, 25th month as well as 37th month.

Protection Business Mix

The mix of protection business was further strengthened to 11% of the individual new business premium (Annualized Premium Equivalent).

Life Insurance Coverage (Sum Assured)

The Company has increased its total coverage and now has total Sum Assured of INR 3.44 Lakh Crores as on 31st March 2020.

Awards

The Company’s all round performance on value creation continued with receiving external recognition in various areas of business. Some of the noteworthy awards won are:

1.    Exide Life Smart Term Plan voted as Product of the Year 2019

2.    Helmet Saves CSR initiative won:

a.    Best BTL campaign for a socio economic program in Masters of Modern Marketing

b.    Brandvid (Gold) Best brand integration in Music Video

c.    Brandvid (Silver) – Best brand film for Social initiative

d.    FICCI best CSR initiative in Life Category 

Is bankrupt Nortel giving away $7.3 m as bonus?

A Canadian court has allowed eight senior executives at Nortel Networks Corp to share in the bonuses that the telecom equipment maker plans to pay out even as it fights for survival in bankruptcy protection.

Bankruptcy courts in both the US and Canada will allow Nortel Networks to pay as much as $7.3 million in incentive bonuses to the executives.

Nortel already had court approval to pay out a total of $45 million in bonuses for close to 1,000 executive and non-executive employees.

Friday's ruling by the Ontario Superior Court makes the eight senior executives, who do not include Chief Executive Mike Zafirovski, eligible to receive a share of this money, company spokesman Mohammed Nakhooda said.

In addition to the $45 million, Nortel has a separate quarterly bonus plan in place for "the vast majority of employees at all levels," he added.

Nortel -- North America's biggest maker of telephone gear -- had argued in an earlier court report that the bonuses were needed because "the commitment and retention of key employees will be essential to the execution of a restructuring of Nortel".

Executive compensation has become a hot-button issue with investors and politicians alike, particularly amid revelations that US insurance giant American International Group (AIG) paid out $165 million in bonuses after receiving $180 billion in government aid.

Some companies, including all of Canada's large banks, have introduced nonbinding shareholder votes on executive compensation in a bid to provide greater transparency and more accountability.

Toronto-based Nortel filed for bankruptcy protection in January, blaming the economic crisis for derailing a turnaround effort that began in 2005.

It had about $2.4 billion in cash when it sought protection and about $4.5 billion in long-term debt.

Nortel shares were unchanged at 10 Canadian cents on the Toronto Stock Exchange on Friday. In mid-2000, at the height of the company's success, they were worth more than C$1,100 each, adjusted for a stock consolidation that took place in 2006.

Agencies