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Business Standard
04-07-2025
- Business
- Business Standard
GMM Pfaudler arm to acquire Semco Technologia; share price rises 3%
GMM Pfaudler shares witnessed a surge of over 3 per cent, logging an intraday high of ₹1,280 on Friday, after its subsidiary firm acquired SEMCO Tecnologia for ₹158 crore. The deal will be funded via internal accruals and debt. As per the exchange filing, the transaction is expected to close in the second quarter of financial year 2025-26 (Q2FY26). At 01:00 PM, GMM Pfaudler shares were trading at ₹1,263.40, up by 1.90 per cent on the National Stock Exchange. In comparison, the Nifty50 was trading in the red territory, down by 46 points or 0.18 per cent. So far this year, shares of the company have witnessed a single-digit surge of 5.3 per cent on the NSE. However, on an annual basis, GMM Pfaudler shares have declined by more than 9 per cent. The corrosion-resistant equipment manufacturer will acquire SEMCO via its wholly owned subsidiary firm, Pfaulder Ltda. "The acquisition of SEMCO strengthens our mixingtTechnologies platform and provides us with direct access to the fast-growing mining sector in Brazil. This strategic move will enhance our global presence by adding products, technologies, and process know-how to our portfolio," said Tarak Patel, managing director, GMM Pfaudler. SEMCO, headquartered in Brazil, has a strong presence in various industries, including metals & mining, renewable fuels, water & wastewater treatment, chemicals and petrochemicals. "We are thrilled to join the GMM Pfaudler group and gain access to the company's extensive product portfolio and well-established global sales network," Rodrigo C. Franceschini, CEO of Semco, said in a recent exchange filing. Brazil is among the leading producers of iron ore, copper and bauxite, which has spurred demand for crushing, filtration, mixing and slurry handling equipment. As per data, the country's mining sector will attract investments worth over $50 billion in the next 5 years. About GMM Pfaudler GMM Pfaudler designs and manufactures corrosion-resistant technologies and systems and provides services to diversified industries, including chemical, pharmaceutical, and other process industries. The company has 18 manufacturing locations with a strong presence across 4 continents. GMM Pfaudler, formerly Gujarat Machinery Manufacturers, was established in 1962.
Business Standard
22-05-2025
- Business
- Business Standard
GMM Pfaudler slumps on reporting dismal Q4 outcome
GMM Pfaudler tumbled 6.96% to Rs 1,177.80 after the company reported a consolidated net loss of Rs 26.95 crore in Q4 FY25, compared with a net profit of Rs 27.63 crore in Q4 FY24. The weak bottom-line performance came despite an 8.89% year-on-year (YoY) increase in revenue from operations, which rose to Rs 806.59 crore from Rs 740.73 crore in Q4 FY24. Profit before exceptional items and tax stood at Rs 13.52 crore, significantly lower than the Rs 31 crore reported a year earlier. The company incurred exceptional items of Rs 47.66 crore during the quarter. EBITDA rose 4% YoY to Rs 93 crore, but the EBITDA margin declined to 11.5%, compared with 12.1% in Q4 FY24 and 12.9% in Q3 FY25. Order intake for the quarter stood at Rs 660 crore, while the order backlog declined 3% YoY to Rs 1,636 crore. On a full-year basis, the company's net profit tanked 69.81% to Rs 52.97 crore on a 7.19% drop in revenue to Rs 3,198.69 crore in FY25 over FY24. GMM Pfaudlers India operations reported revenue of Rs 252 crore and EBITDA of Rs 44 crore, with an EBITDA margin of 17.4%. The company said profitability improved in the second half of the year, supported by higher volumes, a favorable product mix, and ongoing cost optimization. The company noted that these initiatives are expected to continue benefiting margins into FY26. The opening order backlog for FY26 stands at Rs 549 crore, up 20% YoY. Commenting on the companys Q4 FY25 results, Tarak Patel, MD, said, This year has been challenging, primarily due to a general slowdown in the chemical and pharmaceutical sectors. Additionally, uncertainties surrounding global trade and geopolitical tensions have further complicated the situation. Patel, however, struck an optimistic tone regarding the companys operational strategy. Our focus on diversification and cost optimization has enabled us to navigate these difficulties effectively, he added. Meanwhile, the board recommended a final dividend of Rs 1 per equity share (face value Rs 2) for FY25, subject to shareholder approval at the upcoming 62nd AGM. Including the interim dividend, the total dividend for the year stands at Rs 2 per share. The record date will be announced in due course. GMM Pfaudler delivers corrosion-resistant technologies, systems, and services worldwide and remains the preferred choice by consistently providing its customers in the chemical and pharmaceutical industries with innovative and cost-effective solutions.
Mint
22-05-2025
- Business
- Mint
GMM Pfaudler shares slide over 8% after weak Q4 results; net loss, margin pressure weigh on sentiment
Shares of GMM Pfaudler declined sharply in intraday trade on Thursday, May 22, falling over 8 percent to hit a low of ₹ 1,161, after the company reported a disappointing set of numbers for the March 2025 quarter (Q4FY25). Despite revenue growth, the quarter was marred by a steep net loss, declining margins, and elevated one-time costs, which overshadowed otherwise resilient operational performance, particularly in the Indian market. For the January-March quarter, GMM Pfaudler posted a consolidated net loss of ₹ 27 crore, compared to a net profit of ₹ 27.6 crore in Q4FY24. The company clarified that the net loss excludes one-time closure costs of ₹ 47.7 crore, which included severance pay, inventory write-offs, and asset impairments. After tax, total exceptional items stood at ₹ 43 crore for Q4FY25 and ₹ 50.4 crore for FY25. Despite these pressures, revenue from operations rose 8.9 percent YoY to ₹ 806.6 crore, up from ₹ 740.7 crore a year ago. However, EBITDA declined 57.5 percent YoY to ₹ 83.3 crore, and the EBITDA margin narrowed to 10.3 percent from 12.1 percent in Q4FY24, indicating continued pressure on profitability. For the full financial year ended March 2025, net profit slumped 69.81 percent to ₹ 52.97 crore, down from ₹ 175.47 crore in FY24. Total revenue declined 7.19 percent YoY to ₹ 3,198.69 crore, compared to ₹ 3,446.48 crore in the previous fiscal. The company's India operations reported revenue of ₹ 252 crore and EBITDA of ₹ 44 crore, with a healthy margin of 17.4 percent. Profitability improved in the second half of FY25, supported by higher volumes, favourable product mix, and a cost optimisation programme. Speaking on the results, Tarak Patel, Managing Director of GMM Pfaudler, acknowledged the challenging macro environment. 'This year has been challenging, primarily due to a general slowdown in the chemical and pharmaceutical sectors. Additionally, uncertainties surrounding global trade and geopolitical tensions have further complicated the situation,' he said. Patel, however, struck an optimistic tone regarding the company's operational strategy. 'Our focus on diversification and cost optimisation has enabled us to navigate these difficulties effectively,' he added. GMM Pfaudler continues to optimise its global manufacturing footprint. During the year, it established a low-cost manufacturing site in Poland, where a capacity expansion programme has been initiated. This move is expected to enhance the group's cost competitiveness in Europe. Concurrently, the company has shut down manufacturing sites in Leven (UK) and Hyderabad (India), aligning with its long-term footprint rationalisation strategy. The company also reported order intake of ₹ 3,102 crore in FY25, a modest 3 percent YoY increase, while the order backlog declined 3 percent to ₹ 1,636 crore. On the cash flow front, the company delivered free cash flow of ₹ 318 crore, which was ₹ 97 crore higher than the previous year, indicating improved capital discipline. The board of directors has recommended a final dividend of ₹ 1 per equity share (face value ₹ 2) for FY25, subject to shareholder approval at the upcoming 62nd Annual General Meeting. Including the interim dividend, the total payout for FY25 stands at ₹ 2 per share. The record date for the final dividend will be announced in due course. The sharp fall on May 22 came despite a 14 percent gain in the stock earlier in May. GMM Pfaudler is now 24 percent below its 52-week high of ₹ 1,530.80, touched in August 2024, but 22 percent above its 52-week low of ₹ 953, hit in April 2025. On a 12-month basis, the stock has declined 9.5 percent. Prior to May's rally, it gained 1.17 percent in April, but saw back-to-back declines of 8.4 percent in March and 7 percent in February. In January, the stock managed a marginal 1 percent rise. Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
