Garware Hi-Tech Films Limited — Credit Ratings, 07-07-2025: Credit Rating

CARE Ratings Limited has reaffirmed Garware Hi-Tech Films Limited’s credit ratings at CARE AA- (Stable) for long-term bank facilities and CARE A1+ for short-term facilities. The reaffirmation reflects GHFL’s strong business profile supported by its diversified, value-added product portfolio, robust export presence (77% of sales), and integrated manufacturing that yields operational efficiencies. Financially, GHFL maintains a net debt-free status with minimal gearing (0.01x) and strong interest coverage at 52.43x, backed by improving profitability (PBILDT margin at 21.63%) and healthy cash accruals (₹377.07 Cr). The rating also considers exposure to crude-linked raw material price volatility and foreign exchange fluctuations. The stable outlook indicates sustained financial strength, supporting competitive borrowing costs and investor confidence while enabling internally funded capex plans.