homebusiness Newscompanies NewsGMM Pfaudler witnesses slowdown in chemicals and pharma sectors in India, but international orderbook strong
GMM Pfaudler witnesses slowdown in chemicals and pharma sectors in India, but international orderbook strong
GMM Pfaudler is ramping up its non-lined glass equipment business through new acquisitions like Mixel France SAS. The focus in this segment is greater as its margins are better than the glass lined equipment business. Another acquisition of $5-6 million in the US is likely to be announced soon and will be funded using internal accruals.
GMM Pfaudler witnessed a strong performance in the fourth quarter with domestic business growth of 30 percent and order intake of Rs 792 crore versus Rs 773 crore quarter on quarter.
Tarak Patel, Managing Director at GMM Pfaudler in an interaction with CNBC-TV18 said the company is on track to meet its FY25 revenue guidance of Rs 3,700 crore and may even exceed its guidance. The FY25 EBITDA target of Rs 630 crore will be achieved using the various initiatives taken up by the company in its international business, supported by cooling off of input prices like metals, energy and chemicals along with strong market positioning.
There are headwinds in the chemicals and pharmaceuticals sector currently, however, expects a turnaround in second half of financial year 2022-23. Patel says "We expect reordering cycle in pharmaceuticals will start picking up by the end of CY2023".
GMM Pfaudler is ramping up its non-lined glass equipment business through new acquisitions like Mixel France SAS. Other acquisitions were in US and Italy. The focus in this segment is greater as its margins are better than the glass lined equipment business. Another acquisition of $5-6 million in the US is likely to be announced soon and will be funded using internal accruals.
GMM Pfaudler won Rs 792 crore orders in the fourth quarter and a total of Rs 3,392 crore orders in FY23, up 15 percent, ending the year with an order backlog of Rs 2,162 crore, up 12 percent. Of the current order backlog, Switzerland and China have 12 to 18 months order backlog, while India has 6 to 7 months, posing a strong visibility.
In December 2022, the Patel family became the single largest promoter shareholder in GMM Pfaudler after another promoter Pfaudler Inc divested 17.32 percent of its stake through open market deals.
The stock is trading 1 percent lower on the exchanges at 1 pm on June 1st.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Phase five Lok Sabha polls: Rae Bareli, Amethi among 14 UP seats going to polls on Monday
May 19, 2024 1:03 PM
AAP protest walk: Arvind Kejriwal challenges BJP to arrest entire party, Delhi Police imposes Section 144
May 19, 2024 12:26 PM
Terror attacks in Kashmir raise concerns ahead of May 20 and May 25 election
May 19, 2024 12:15 PM