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GMM Pfaudler sees export earnings rising sooner on ‘China+1 technique’

The rising choice for an alternate to China for gear sourcing by chemical substances and pharma gamers in Europe and the US is fuelling export prospects for heavy and glass-lined gear maker, GMM Pfaudler Ltd.

The corporate, with its orderbook full for the subsequent 9-12 months, expects the share of export revenues to extend to 15-17 per cent from the present 10-12 per cent within the subsequent few quarters.

“Our manufacturing websites in Vatva (Ahmedabad) and Karamsad (Anand) will probably be used for exports. We have now secured massive orders from Russia, Spain and the US, in addition to Europe, the place we have now important orders. The drivers for development are pharma and chemical substances corporations which have adopted a ‘China-plus one’ technique in sourcing gear and that’s paying off,” Managing Director, GMM Pfaudler, Tarak Patel, informed BusinessLine in a telephonic interplay.

The corporate’s acquisition of bankrupt HDO Applied sciences Ltd’s manufacturing facility in Vatva, Ahmedabad has additional strengthened its competitiveness in cost-conscious world markets, particularly Europe.

“Now we have now India-made gear with Pfaudler high quality, so that’s encouraging German and European patrons. We’re eyeing Japanese and South-East Europe, in addition to South-East Asia,” Patel mentioned, including that the corporate was capable of meet buyer expectations on the supply and price points.

On the margins aspect, Patel says the corporate has achieved the focused EBITDA margins of 15 per cent forward of the steering for 2024.

GMM Pfaudler introduced its second quarter monetary outcomes on Thursday with standalone web revenue at Rs 29 crore, as in opposition to Rs 25 crore in the identical quarter final yr. Standalone income from operations was Rs 206 crore for the quarter as in opposition to Rs 154 crore within the corresponding quarter final yr.

On a consolidated foundation, GMM Pfaudler posted web revenue of Rs 39 crore as in opposition to Rs 27 crore in the identical quarter final yr, indicating a 44 per cent bounce year-on-year. Consolidated income from operations stood at Rs 647 crore, as in opposition to Rs 186 crore in the identical quarter final yr..

Patel knowledgeable that the corporate had EBITDA to debt ranges of lower than one per cent. Additionally, firm has a snug borrowing value with 5 per cent in India and about Three per cent internationally. “There isn’t any stress on the borrowing aspect. And our orderbook, there isn’t a concern of producing money for us. So, we hope to be debt-free within the subsequent three years or so,” mentioned Patel.

GMM Pfaudler shares ended at Rs 4,661.15, up 0.63 per cent on the BSE on Friday. The shares had hit a 52-week excessive of Rs 5,435 in Might 2021 and a 52-week low of Rs 3,316 on November 9, 2020.

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