Shares of GMM Pfaudler Limited dropped over 6% on Thursday as the company announced underwhelming financial results for Q2 FY25. The company reported consolidated revenue of ₹805 crore, reflecting a sequential growth of 3% over Q1 FY25. However, EBITDA fell by 35% year-over-year, coming in at ₹93 crore, with the EBITDA margin declining to 11.5% from 15% in the same quarter last year. The company posted a profit after tax (PAT) of ₹17 crore, translating to a PAT margin of 2.1% and earnings per share (EPS) of ₹3.84.
Key Financial Highlights:
- Revenue: ₹805 crore in Q2 FY25, up 3% quarter-over-quarter but showing strain in year-over-year growth.
- EBITDA: ₹93 crore, down 35% YoY, with an EBITDA margin of 11.5% compared to 15% last year.
- PAT: ₹17 crore, translating to a 2.1% PAT margin and an EPS of ₹3.84.
- Order Intake & Backlog: The order intake for Q2 remained steady at ₹762 crore, with a backlog of ₹1,773 crore, showing a 4% increase quarter-over-quarter.
H1 FY25 Performance:
For the first half of FY25, GMM Pfaudler reported consolidated revenue of ₹1,591 crore, EBITDA of ₹182 crore at an 11.4% margin, and PAT of ₹41 crore with a PAT margin of 2.6%. The order intake for H1 FY25 was ₹1,644 crore, an 18% rise compared to H1 FY24.
Management’s Remarks:
Mr. Tarak Patel, Managing Director, expressed satisfaction with the stable performance amid a slowdown in the chemical and pharmaceutical sectors. He highlighted the company’s diversification strategy and new product additions as factors contributing to an increase in order intake, helping to maintain a strong backlog.
Patel added, “While the outlook for the year remains subdued, we are focused on enhancing market share, cost reduction, and operational efficiencies.”
As of 9:43 am, GMM Pfaudler shares were trading over 6% lower, reflecting investor concerns over the sharp decline in EBITDA and margin contraction due to pressures in key sectors
