GMM Pfaudler Slips 5%: Weak Q4 Performance Shocker!

Q4 Weakness Hits GMM Pfaudler: Slips 5%

GMM Pfaudler's stock dropped as much as 4.50 percent to reach an intraday low of Rs 1,340.10 per share on Thursday. This happened after the company reported weak results for the March quarter of the fiscal year 2024 (Q4FY24). GMM Pfaudler's net profit fell 14% to Rs 28.7 crore in Q4FY24, from Rs 33.3 crore in the same quarter a year ago (Q4FY23). The company's revenue decreased by 14.5 percent to Rs 740.7 crore, from Rs 866 crore in the same quarter the previous year. Its profit before interest, taxes, depreciation, and amortization (Ebitda), also known as operating profit, was Rs 91 crore in Q4FY24. The Ebitda margin stood at 12.3 percent.

For FY24, revenue was Rs 3,446 crore, Ebitda was Rs 477 crore, profit after tax (PAT) was Rs 174 crore, and the margin was 13.8 percent. GMM Pfaudler's order backlog for the January-March 2024 quarter was Rs 1,689 crore. Additionally, the order intake increased 14% quarter-on-quarter to Rs 861 crore. The board recommended a final dividend of Rs 1 per equity share, pending necessary approvals. The total dividend for FY24, including the interim dividend, was Rs 2 per equity share.

Tarak Patel, Managing Director, said, "We are pleased to report a strong end to the fiscal year, where we managed to grow both revenue and profitability by 8% and 11%, respectively." He added, "Our business diversification strategy has offset the slowdown in the chemical sector and allowed us to focus on new industry segments. Our ongoing cost control and operational excellence measures have helped us maintain margins and position us well for the future."

Shares of GMM Pfaudler were trading 4.69 percent lower at Rs 1,337.60 per share. In comparison, the S&P BSE Sensex was up 0.57 percent at 76,647.04 levels.