Shares of GMM Pfaudler, which makes corrosion resistant glass-lined equipment, surged 13 percent in early trade on July 29, after the company said it registered record revenue growth during April-June 2022 quarter.
At 9.24 am, the stock traded at Rs 1551.60 apiece on the BSE, up 15.5 percent on very high volumes, while the benchmark Sensex was at 57,408.50, up 550.71 points or 0.97 percent.
The company on July 28 reported revenue growth of 34 percent for the first quarter of FY23 on the back of strong execution. EBITDA margin was at 13.2 percent, 672 basis points (bps) higher than previous year. Order intake also improved by 24 percent driven by International business. GMM Pfaudler said backlog has grown by 27 percent and stands at Rs 2,182 crore.
“Our focus on execution and cost controls have helped us achieve a strong Q1 performance, where we have increased revenues and improved margins,” said Tarak Patel, Managing Director, GMM Pfaudler. “We recorded a significantly higher order intake this quarter adding to our backlog and putting us in a strong position for the coming quarters. While commodity prices have softened over the past few months, energy costs continue to remain a concern.”
The company also announced approval of buying 100 percent stake in Hydro Air Research Italia S.r.l. (HARI), based in Milan, Italy, for a total consideration of €4.96 million (Rs 38.24 crore). It designs and manufactures advanced separation systems (skid mounted units and/or turnkey plants) for process applications. The transaction will be funded through internal accruals and expected to be completed in August 2022.“HARI’s application expertise and process know-how will be a welcome addition to our product portfolio and will augment our capabilities to enter adjacent markets and provide green technologies to our customers,” said Patel.