GMM Pfaudler Ltd. expects revenue to touch Rs 2,000 crore on a group level in the ongoing fiscal after merger of operations with Pfaudler International Inc., where the world's largest producer of glass-lined reactors for pharmaceutical and chemical industries has a majority stake.
The guided operating profit for the financial year ending March 2021 is 13% of the top line, according to Tarak Patel, managing director at GMM Pfaudler, but these estimates may be revised due to better-than-estimated second-quarter performance of India operations. The consolidated margins, however, will be lower than what India operations reported because of the merger of the lower-margin global business of Pfaudler International, Patel told BloombergQuint's Niraj Shah in an interview.
GMM Pfaudler witnessed revenue and profit rise 21.8% and 29.3% year-on-year, respectively, to Rs 186.3 crore and Rs 26.9 crore in the quarter ended September. The company's Ebitda margin expanded to 21.2% from 20% a year ago, aided by better operating leverage.
The company, Patel said, will now operate a new facility in Hyderabad, which it had acquired from a competitor earlier in the year. The five-six months' backlog at the Hyderabad facility, worsened due to the floods, will help garner additional revenue in the third and fourth quarters, he said.
Watch the full interview here...
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