Shares of GMM Pfaudler declined over 7 percent following a year-on-year dip in consolidated net profit and revenue for the September quarter.
As of 12:50 PM, the stock traded around around 7 percent lower at Rs 1,285. On a year-to-date basis, GMM Pfaudler has lost about 20 percent, lagging behind the Nifty 50's 11 percent gain over the same period.
In Q2FY25, the company's net profit plunged 75 percent year-on-year to Rs 17.3 crore, marking a 32 percent quarter-on-quarter decline. Revenue also dropped 14 percent on-year to Rs 805.4 crore, though it inched up 3 percent sequentially. GMM Pfaudler saw revenues from its India operations fall to Rs 196.2 crore from Rs 235.21 crore in the previous year, while overseas revenue slid to Rs 609.2 crore from Rs 702.3 crore.
Follow our live blog for all the market action
The company's EBITDA for Q2FY25 stood at Rs 93 crore, with an EBITDA margin of 11.6 percent. Order intake remained steady at Rs 762 crore for Q2. The H1 FY25's order intake was at Rs 1,644 crore, an 18 percent increase from H1 FY24. Order backlog rose 4 percent from September 30, 2023, reaching Rs 1,773 crore.
Commenting on the results, Managing Director Tarak Patel said, "We are pleased to report a stable performance this quarter despite a general slowdown in investments within the chemical and pharmaceutical sectors. As a result of our diversification strategy, which involves adding new products to our portfolio and developing new industry segments, we have seen an improvement in order intake which has helped us maintain our backlog," said Tarak Patel, Managing Director of GMM Pfaudler.
He further said, "While the outlook remains muted for this financial year, we continue to focus our efforts on
strengthening our market share, reducing costs and improving efficiencies."
GMM Pfaudler specializes in corrosion-resistant, glass-lined equipment and serves as a key supplier to the pharmaceutical and chemical industries. The company has diversified its offerings to include mixing systems, filtration & drying equipment, engineered systems, and heavy engineering equipment.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
