GMM Pfaudler Shares Drop Over 8% After Weak Q4 Results

GMM Pfaudler, a company known for making glass-lined equipment used in chemical and pharmaceutical factories, saw its shares fall sharply by more than 8% on Thursday, May 23. The drop came right after the company announced its financial results for the last quarter of the financial year — and the numbers were not great.

Profits and Sales Both Took a Hit

For the January-March 2024 quarter (Q4), GMM Pfaudler made a profit of ₹28.7 crore. That might sound like a lot, but it’s actually 14% less than what the company made in the same quarter last year (₹33.3 crore).

Not just profits — even the total sales (or revenue) went down. The company earned ₹740.7 crore this quarter, which is a drop of over ₹125 crore compared to last year’s ₹866 crore.

In short: GMM made less money and also spent more to make it — not the best combo.

Full-Year Report: Slightly Better, But Still Under Pressure

If we look at the full year (April 2023 to March 2024), the overall numbers look a little better. GMM’s total revenue for the year was ₹3,446 crore, and it earned ₹174 crore in profit after tax. So, the year wasn’t a total washout — but the poor ending in the last quarter has made investors nervous.

Good News? A Healthy Order Book and Small Dividend

Despite the poor results this quarter, there are a couple of silver linings.

One, the company says it still has a good pipeline of work lined up. It has orders worth ₹1,689 crore waiting to be completed. That means business is still coming in — it just hasn’t been billed yet.

Two, GMM Pfaudler announced a small dividend of ₹1 per share. That brings the total dividend for the year to ₹2 per share (including the one they paid earlier).

What The Company Is Saying

Tarak Patel, the company’s Managing Director, admitted that the results weren’t ideal, but tried to stay positive. He said that while the chemical sector (one of their biggest customer bases) is slowing down, the company is trying to grow in other areas too. He also mentioned that GMM is cutting unnecessary costs and improving operations to stay efficient.

In short, his message was: “Yes, this quarter was tough — but we’re working on bouncing back.”

How Investors Reacted

Investors clearly didn’t like what they saw. The company’s share price took a sharp dive after the results were made public. For stock market watchers, this kind of fall shows that people are worried about where the company is headed in the short term.

Still, some are hopeful that with its future orders and better cost control, GMM Pfaudler might turn things around in the next few quarters.