GMM Pfaudler Q1 results: Co reports consolidated net loss of Rs 18 crore

Mumbai: Process equipment maker GMM reported Rs 18-crore consolidated loss for the April-June period, which was the first full quarter since the acquisition of parent Pfaudler Group, on account of one-time charges due to changed accounting standards.

Consolidated revenue for the quarter grew multi-fold to Rs 552 crore. The financials cannot be compared to the year-ago period since the acquisition was formalised in February this year.

The company took a purchase price allocation charge of Rs 47 crore and Rs 19 crore of amortisation charges during the June quarter after the merger of its US-based parent company on its books.

The company makes glass-lined equipment for pharmaceuticals and chemicals industries and has also diversified into the heavy-engineering segment recently.

“Business continues to remain very strong. We have seen a good amount of order intake as agrochemicals and specialty chemicals industries continue to invest. On top of that there is a bit of recovery in pharmaceuticals too,” Tarak Patel, the managing director of GMM Pfaudler, told ET.

The company said that it had a pending order book of Rs 1,700 crore compared to about Rs 1,400 crore at the beginning of the quarter. That translates to about 9-10 months of business, Manish Poddar, the chief financial officer of the company said.

GMM Pfaudler benefitted from chemicals companies investing in new facilities in India as global companies look at India as a sourcing base to reduce their over-dependence on China, Patel said.

The company was investing in a new plant in Brazil to support its US business and also increasing capacities in India. The company can now supply to several new geographies from India, like the middle-east, which it couldn’t access earlier due to non-compete agreements with the Pfaudler group.

It is also betting big on the heavy engineering segment which also helps it de-risk against the slowdown in the process equipment business.

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