GMM Pfaudler shares surge 12% after Q1 results. Here's why

Shares of GMM Pfaudler climbed 12 per cent in Friday's trade after the positive management commentary post a tepid set of June quarter results. GMM Pfaudler reported a 13 per cent YoY drop in profit at Rs 54 crore for the June quarter compared with Rs 61 crore in the same quarter of last year. This is even as revenue for the quarter rose 23 per cent YoY to Rs 912 crore on strong order execution.

Managing Director Tarak Patel said at GMM Pfaudler remains on track to meet our FY25 guidance.

"Order intake remains subdued due to general weakness in the chemical sector; however, our opportunity pipeline remains strong across all business platforms and geographies; and we expect that some of the customer decision making which has been delayed will come through in the next quarter,”  he said.

Following the development, the stock rose 12.32 per cent to hit a high of Rs 1,630.80 on BSE.

GMM Pfaudler said the order backlog fell to Rs 2,013 crore in Q1 against Rs 2,162 crore in  March and Rs 2,182 crore in the year-ago quarter. Order intake stood at Rs 770 crore for the quarter.

Patel said GMM's order backlog remains stable, translating to about eight months of visibility in the international business and about six months in the India business.”

“Our business today is more resilient than ever before, and we remain committed to our vision of building a world class institution,” he said.
 

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