GMM Pfaudler (505255) Q2 24/25 earnings summary

Executive summary

• Q2 FY25 consolidated revenue was ₹805.42 crore, with EBITDA margin at 11.6% and order intake of ₹762 crore; order backlog stood at ₹1,773 crore as of September 30.

• Standalone Q2 FY25 revenue was ₹208.02 crore with a 10.8% EBITDA margin.

• PAT for Q2 FY25 was ₹17.28 crore, PAT margin 2.1%, and EPS at ₹3.84.

• H2 is expected to be stronger in both revenue and margins, supported by a healthy backlog and improved order intake, especially in non-glass-lined technologies.

• Diversification into new industries and geographies is a key strategic focus to offset chemical sector weakness.

Financial highlights

• H1 FY25 order intake was ₹1,644 crore, up 18% year-over-year; H1 FY25 revenue was ₹1,591 crore, down 14% year-over-year.

• Unbilled revenue and inventory increased by ₹28 crore and ₹32 crore, respectively, since March, reflecting higher production activity.

• Receivables decreased by ₹21 crore due to focused collections, supporting improved free cash flow (FCF).

• FCF generation reached 50% in H1, with expectations for continued healthy cash flow in H2.

• Cash and cash equivalents at the end of H1 FY25 stood at ₹370.39 crore (consolidated) and ₹53.14 crore (standalone).

Outlook and guidance

• Management expects a flattish year for FY25, with top-line growth guidance of 3-4% and margins similar to last year, though under pressure.

• H2 is anticipated to outperform H1, driven by backlog execution and improved order intake in India and non-glass-lined businesses.

• Medium-term growth (FY26-27) is expected as the chemical cycle turns and diversification efforts mature.

• The Board approved the unaudited results and announced an interim dividend, indicating confidence in ongoing performance.

• ICRA ratings maintained at AA-/Stable/A1+.