GMM Pfaudler (505255) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 consolidated revenue was ₹785 crore, with EBITDA at ₹89 crore and PAT at ₹24 crore, reflecting stable performance and strong execution across geographies.

• Order intake reached ₹882 crore, the highest in eight quarters, mainly driven by heavy engineering, mixing technologies, and systems.

• Order backlog increased 5% sequentially to ₹1,777 crore, supported by diversification into new markets and industry segments.

• The business environment is impacted by a slowdown in the chemical and agrochemical sectors, but diversification into heavy engineering, mixing, and systems has mitigated the impact.

• Net profit attributable to equity holders was ₹25.26 crore, down from ₹31.07 crore in the previous quarter and ₹50.65 crore year-over-year.

Financial highlights

• Consolidated Q1 FY25 revenue was ₹785 crore; EBITDA stood at ₹89 crore with an EBITDA margin of 11.3%.

• Revenue declined 13%-14% year-over-year but grew 6% sequentially; EBITDA margin at 11.3%, down from 13.5%-14.3% year-over-year.

• PAT margin at 3.0%, down from 5.5% year-over-year; EPS at ₹5.62, a 50% decrease year-over-year.

• Standalone revenue fell 20% year-over-year; standalone EBITDA margin at 11.2%, down from 14.3% year-over-year.

• International revenue declined 12% year-over-year; international EBITDA margin at 10.1%, down from 12.8% year-over-year.

Outlook and guidance

• Management expects 5%-7% revenue growth for FY25, with a strong order backlog and continued order intake in Q2 and Q3.

• EBITDA margin guidance is to maintain or slightly improve upon last year’s 13.5%, contingent on volume recovery.

• FY25 is seen as a year of consolidation, with modest growth in revenue and profitability.

• Product mix continues to evolve in line with diversification strategy; opportunity pipeline remains stable across all business platforms.

• A new three-year strategic plan will be communicated within 3-6 months, focusing on growth and diversification.