GMM Pfaudler reported a net loss of ₹8 crore for the December quarter, marking a significant decline from the net profit of ₹41.8 crore recorded in the same period last year. According to the company's earnings filing, this decline was primarily attributed to one-time provisions totaling ₹56.3 crore, including a ₹12.7 crore provision related to new labour code implementation at GMM Pfaudler India and a ₹43.6 crore provision for severance and retiral benefits linked to workforce reduction at its German subsidiary, Pfaudler GmbH. The sharp swing to a loss came despite higher revenue and EBITDA growth, marking a significant contrast with the company's performance in the year-ago period.
Despite the net loss, the company demonstrated strong operational performance with consolidated revenue from operations of ₹883.50 crore, representing a 10.3% improvement over ₹801 crore in the year-ago quarter. As reported by the company, EBITDA increased 10% year-on-year to ₹105.5 crore from ₹96 crore in December 2024. The company's order intake improved 20% YoY to ₹961 crore, contributing to a total order backlog of ₹2,205 crore. However, the EBITDA margin remained flat at 12% on a year-on-year basis, indicating limited operating leverage during the quarter.
The company showcased robust future visibility with order intake rising 20% YoY to ₹961 crore and a closing backlog of ₹2,205 crore, up a strong 27% YoY. According to the company statement, the diversification strategy is gaining momentum with nearly 50% of order intake now coming from non-traditional industries, enhancing resilience and positioning the company well for the upcoming financial year. The workforce reduction at Pfaudler GmbH in Waghäusel, Germany, was part of efforts to streamline global manufacturing footprint, with management highlighting the challenging global economic climate while emphasizing the company's diversification momentum.
Tarak Patel, Managing Director, highlighted the company's nine-month performance achievements, noting revenue growth of 8% and EBITDA increase of 14% on a nine-month basis. According to the company statement, the diversification strategy is gaining momentum with nearly 50% of order intake now coming from non-traditional industries, enhancing resilience and positioning the company well for the upcoming financial year. The company did not provide specific quantitative forward guidance for upcoming quarters, which might leave investors seeking more concrete near-term revenue and margin targets.
The company's shares continue to face significant market pressure, with shares closing at ₹991.70 on NSE, down ₹10.90 or 1.09% for the day. As reported by Live Mint, the stock slipped below ₹1,000 level to reach ₹950 in January, representing a 57% correction from its record high of ₹2,304. Despite the sharp correction, the stock has delivered a 3,534% gain over the last 12 years and maintained positive performance between 2013-2021 with nearly 5,800% cumulative gains during that period.
