GMM Pfaudler: Q1FY15 Result Analysis

The total income of GMM Pfaudler was up marginally to Rs 46.14 crore in June’14 from Rs 38.96 crore mainly because of increase in net sales which was up marginally to Rs 38.96 crore in June’14 from Rs 46.14 crore in June’13 (YoY). The total expenses were up to Rs 43.09 crore in June’14 from Rs 37.58 crore in (YoY) June’13. This can be attributed to the increase in cost of raw material consumed, depreciation charges and labor charges. The cost of raw material consumed increased to Rs 26.94 crore in June’14 from Rs 23.93 crore in June’13.

The net profit on a YoY basis increased from Rs 1.73 crore in June’13 to Rs 3.25 crore in June’14. However, on a quarterly basis it slipped marginally from Rs 4.48 crore in Mar’14 (QoQ). The EPS was up marginally to Rs 2.23 per share in June’14 from Rs 1.19 per share in June’13 (YoY).

Coming to the segment wise revenue, chemical processing equipment contributed the most, which increased to Rs 5.56 crore in June’14 from Rs 2.79 crore in June’13. It was followed by filtration equipment but the mixing systems recorded a loss on YoY basis. The management has announced, for the first time, an interim dividend of Rs 0.70 per share on a face value of Rs 2. The company has a strong customer base comprising clients such as Cipla, Clarinet, Ranbaxy, Thermax, Rallis etc.