GMM Pfaudler spurts after robust Q1 outcome

GMM Pfaudler surged 17.47% to Rs 1577.90 after the company's consolidated net profit surged to Rs 44.51 crore in Q1 June 2022 as against Rs 2.59 crore in Q1 June 2021.

Net sales rose 34% to Rs 739.24 crore in Q1 June 2022 over Q1 June 2021 on the back of strong execution.

Pre-tax profit stood at Rs 83.43 crore in Q1 June 2022 compared with pre-tax loss of Rs 15.65 crore in Q1 June 2021.

EBITDA stood at Rs 98 crore in Q1 FY23, up 172% YoY and up 36% QoQ. EBITDA margin was at 13.2%, 672 bps higher than previous year.

Order intake were reported at Rs 998 crore in Q1 FY23, up 24% YoY and up 112% QoQ. The growth was driven by International business. Order backlog grew by 27%, YoY to Rs 2,182 crore.

Commenting on the Company's Q1 FY23 results, Tarak Patel, managing director said, "Our focus on execution and cost controls have helped us achieve a strong Q1 performance, where we have increased revenues and improved margins. 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."

Meanwhile, GMM signed an agreement to acquire 100% stake in Hydro Air Research Italia S.r.l., based in Milan, Italy, for a total consideration of 4.96 million euros (Rs 38.24 crore). The transaction is funded through internal accruals and expected to be completed in August 2022.

Hydro Air Research Italia S.r.l. (HARI) designs and manufactures advanced separation systems (skid mounted units and/or turnkey plants) for process applications. Working in separation technologies for more than 40 years and with over 60 plants completed in the last 5 years, HARI offers green solutions to various industries including the pharmaceuticals and chemicals and has also recently entered high growth sectors such as plant-based proteins, bioplastics and lithium purification.

"I am happy to announce that we have approved the acquisition of Hydro Air Research Italia S.r.l. (HARI) based in Milan, Italy. HARI is an engineering company specializing in the field of liquid separation and filtration serving the pharmaceutical and chemical industries. 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," Tarak Patel said.

GMM Pfaudler delivers corrosion-resistant technologies, systems, and services worldwide and remains the preferred choice by consistently providing its customers in the chemical and pharmaceutical industries with innovative and cost-effective solutions.

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