GMM Pfaudler share price plunges 6% on weak profit in June-end quarter; company announces dividend

Despite good first-quarter numbers, GMM Pfaudler shares plunged over 6 per cent to Rs 4370 per share on the BSE intraday trade on Thursday, as the company’s profit grew by 58 per cent to Rs 25.8 crore in June ended-quarter as against Rs 16.4 crore a year-ago quarter, it said in an exchange filing.

While the revenue jumped 31 per cent to Rs 171.4 crore in the quarter ended June 2021 as against Rs 130.9 crore during the previous quarter a year ago. While EBITDA margin surged to 26 per cent in Q1FY22 from 19 per cent in the same period a year ago, the company further said in the filing.

See Zee Business Live TV Streaming Below:

Along with financial results, the company’s board has also “approved payment of 1 per cent Interim dividend of Re. 1 per share on 14,617,500 Equity Shares of Rs. 2 each aggregating to Rs. 14,617,500 for FY22 with a record date of August 23, 2021, and payment date on or before September 10, 2021.”

GMM Pfaulder Managing Director Tarak Patel commenting on the company’s Q1FY22 performance said “Our integration initiatives are progressing well and we have now started seeing the impact of post-merger synergies in our profitability. Our order intake across all our product lines continues to remain strong while the overall business environment looks encouraging.”

The stock has, however, recovered in the trade today and is trading near 5 per cent down from the day’s low on the BSE at around 02:00 pm, as compared to an almost a 1 per cent rise in the S&P BSE Sensex. The counter had hit a 52-week high of 6360 per share exactly a year ago on August 21, 2020.

GMM Pfaudler (GMMP) is a global and diverse company, employing over 1,500 employees and 13 manufacturing facilities on four continents. GMMP is present in the market with several branded product lines covering a broad portfolio that includes fluoropolymers, filtration & drying, engineered column systems, lab, and process glass, sealing technology, and glass-lined & alloy systems.