GMM Pfaudler , a leading manufacturer of glass-lined equipment, has made several significant announcements, including a bonus share issue, leadership changes, and its financial results for the fiscal year 2021-22.

Bonus Share Issue and Capital Restructuring

The company's board has approved a bonus issue of equity shares in a 2:1 ratio, subject to shareholder approval. This means shareholders will receive two additional shares for every one share held. To accommodate this, GMM Pfaudler plans to increase its authorized share capital from INR 5.00 crore to INR 10.00 crore.

The record date for the bonus issue has been set as July 12, 2022, with the new shares expected to be credited to shareholders' accounts by July 23, 2022.

Leadership Changes

In a significant move, the board has appointed Prakash Apte as an Independent Director for a five-year term. Apte is slated to succeed Dr. S. Sivaram as the Chairman of the company following the latter's retirement at the upcoming 59th Annual General Meeting (AGM).

Financial Performance FY 2021-22

GMM Pfaudler reported robust financial results for the year ended March 31, 2022:

The company's consolidated revenue showcases its strong global presence and diversified operations.

Dividend Declaration

Rewarding its shareholders, the board has recommended a final dividend of INR 3.00 per equity share (pre-bonus) for the financial year 2021-22.

These announcements reflect GMM Pfaudler's commitment to enhancing shareholder value through capital restructuring, ensuring strong corporate governance with leadership transitions, and maintaining robust financial performance. The bonus issue is likely to improve the stock's liquidity and make it more accessible to a broader range of investors.

GMM Pfaudler , a leading manufacturer of engineered equipment for the chemical and pharmaceutical industries, has reported a robust performance in the first quarter, with significant improvements in profitability and order intake.

Financial Highlights

The company delivered stable revenue for the quarter, with consolidated EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) showing a strong year-on-year growth of 14%. The India business performed exceptionally well, with EBITDA growing by an impressive 45% compared to the same quarter last year.

EBITDA margins also saw notable improvement:

• Consolidated EBITDA margin improved to 12.70%
• Standalone EBITDA margin reached 15.70%

Strong Order Intake and Backlog

GMM Pfaudler secured a robust order intake of ₹1,004.00 crores during the quarter, marking a significant increase of:

• 14% year-on-year
• 52% quarter-on-quarter

This strong performance was primarily driven by the company's systems and services business.

The current order backlog stands at ₹1,906.00 crores, representing:

• 7% increase year-on-year
• 17% increase quarter-on-quarter

This healthy backlog provides good visibility for upcoming quarters.

Business Expansion and Market Outlook

The company is in the final stages of completing the acquisition of SEMCO, which will mark its entry into South American markets. This strategic move is expected to expand GMM Pfaudler's global mixing platform to $65.00 million.

In India, the business shows signs of recovery, with investments returning in the pharmaceutical and chemical sectors. However, the international business remains cautious due to global uncertainties.

Challenges

The company faced a ₹20.00 crore foreign exchange loss due to Euro appreciation. Additionally, GMM Pfaudler reported a high tax rate of 68% for the quarter, attributed to its international group structure.

Management Commentary

Tarak Patel, Managing Director of GMM Pfaudler, commented on the results: "We have delivered a stable revenue this quarter with a strong improvement in profitability, largely driven by our India business. Our focus on execution and growth in India, coupled with strategic initiatives in international markets, positions us well for the future."

The company's management expressed optimism about the Indian market, noting increased inquiries and opportunities from various sectors, including agrochemicals. They also highlighted the potential benefits of the SEMCO acquisition in expanding their presence in South America.

GMM Pfaudler continues to focus on cost optimization and operational efficiency, particularly in its international operations, to navigate the current global economic uncertainties and position itself for future growth.