GMM Pfaudler Q2 PAT up 29% YoY to Rs 27 cr

GMM Pfaudler's consolidated net profit jumped 29.14% to Rs 26.85 crore on 21.69% increase in revenue from operations to Rs 186.25 crore in Q2 September 2020 over Q2 September 2019.

Consolidated profit before tax (PBT) jumped 35.46% to Rs 33.54 crore in Q2 September 2020 over Q2 September 2019. Current tax expense for the quarter surged 64.55% year-on-year to Rs 8.59 crore. The Q2 result was declared after market hours today, 21 October 2020.

EBITDA jumped 29% to Rs 39.40 crore in Q2 FY21 as against Rs 30.60 crore in Q2 FY20. EBITDA margin improved to 21% in Q2 FY21 from 20% in Q2 FY20. PAT margin was flat at 14% in Q2 FY21 compared with Q2 FY20.

Commenting on the company's Q2FY21 performance, Tarak Patel, the managing director (MD) of GMM Pfaudler, has stated that: "This has been a very strong quarter for us where we have managed to significantly improve revenue and profitability. The improvement in profitability is expected to continue on the back of incremental revenue, operating leverage, and some of our strategic initiatives paying off. Our Hyderabad manufacturing facility is now up and running and we expect to close the Pfaudler Inc acquisiton by the end of the year. We remain confident on the long-term prospects of the company."

The board of GMM Pfaudler has announced a payment of second interim dividend at Rs 1 per equity share. The company has fixed 29 October 2020 as the record date for the payment of interim dividend.

GMM Pfaudler has commenced operations at its glass lined equipment manufacturing facility at Nacharam, Hyderabad (Telangana) which it had acquired from De Dietrich Process Systems India (DDPSI) in July 2020. In addition to this facility, the company also operates two facilities in West India, one at Karamsad (Gujarat) and the other at Pune (Maharashtra).

Shares of GMM Pfaudler fell 0.58% to close at Rs 3,591.65 on BSE.

GMM Pfaudler is a leading supplier of process equipment to the pharmaceutical and chemical industries. The company holds a majority stake of 54% in the parent Pfaudler Group and is the market leader with more than five decades' experience in manufacturing glass lined equipment.

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