GMM Pfaudler firms up after good Q1 outcome

GMM Pfaudler rose 0.60% to Rs 4147 after the company reported 8.5% rise in consolidated net profit to Rs 19.19 crore on 2.8% increase in net sales to Rs 154.43 crore in Q1 June 2020 over Q1 June 2019.

EBITDA remained flat at Rs 27.5 crore during the quarter. EBITDA margin fell to 17.8% as on 30 June 2020 from 18.4% as on 30 June 2019.

Profit before tax in Q1 FY21 stood at Rs 23.07 crore, down by 4% from Rs 24.04 crore in Q1 FY20. Current tax expense declined 12% to Rs 5.07 crore in Q1 FY21 over Q1 FY20.

Commenting on the company's performance for the quarter, Tarak Patel, managing director, said, "We are pleased to start the fiscal year on a positive note with a solid performance in this quarter. Despite external challenges related to the coronavirus pandemic and the subsequent nationwide lockdown, we were able to quickly ramp up our production activities and make a strong recovery. All our business lines continue to witness strong traction on the back of robust demand driven by the Chemical and Pharmaceutical industries.

We are also pleased to announce that we have received approval to sign definitive documents with De Dietrich Process Systems India for the acquisition of their Glass Lined Equipment manufacturing facility in Hyderabad, Telangana which will help us further strengthen our presence in the region."

The Group has entered into binding term sheet on 30 June 2020 with De Dietrich Process Systems India for itemised sale of their Glass Line equipment manufacturing facility at Hyderabad for consideration equivalent to 6.25 million euros subject to due diligence and execution of the definitive documents.

GMM Pfaudler is a supplier of process equipment to the pharmaceutical and chemical industries. The company has a diversified product portfolio which includes mixing systems, filtration & drying equipment, engineered systems and heavy engineering equipment.

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