Shares of GMM Pfaudler declined sharply in intraday trade on Thursday, May 22, falling over 8 percent to hit a low of ₹1,161, after the company reported a disappointing set of numbers for the March 2025 quarter (Q4FY25). Despite revenue growth, the quarter was marred by a steep net loss, declining margins, and elevated one-time costs, which overshadowed otherwise resilient operational performance, particularly in the Indian market.
Net Loss in Q4, Full-Year Profit Tumbles Nearly 70%
For the January-March quarter, GMM Pfaudler posted a consolidated net loss of ₹27 crore, compared to a net profit of ₹27.6 crore in Q4FY24. The company clarified that the net loss excludes one-time closure costs of ₹47.7 crore, which included severance pay, inventory write-offs, and asset impairments. After tax, total exceptional items stood at ₹43 crore for Q4FY25 and ₹50.4 crore for FY25.
Despite these pressures, revenue from operations rose 8.9 percent YoY to ₹806.6 crore, up from ₹740.7 crore a year ago. However, EBITDA declined 57.5 percent YoY to ₹83.3 crore, and the EBITDA margin narrowed to 10.3 percent from 12.1 percent in Q4FY24, indicating continued pressure on profitability.
For the full financial year ended March 2025, net profit slumped 69.81 percent to ₹52.97 crore, down from ₹175.47 crore in FY24. Total revenue declined 7.19 percent YoY to ₹3,198.69 crore, compared to ₹3,446.48 crore in the previous fiscal.
The company’s India operations reported revenue of ₹252 crore and EBITDA of ₹44 crore, with a healthy margin of 17.4 percent. Profitability improved in the second half of FY25, supported by higher volumes, favourable product mix, and a cost optimisation programme.
Speaking on the results, Tarak Patel, Managing Director of GMM Pfaudler, acknowledged the challenging macro environment. “This year has been challenging, primarily due to a general slowdown in the chemical and pharmaceutical sectors. Additionally, uncertainties surrounding global trade and geopolitical tensions have further complicated the situation,” he said.
Patel, however, struck an optimistic tone regarding the company’s operational strategy. “Our focus on diversification and cost optimisation has enabled us to navigate these difficulties effectively,” he added.
Strategic Moves
GMM Pfaudler continues to optimise its global manufacturing footprint. During the year, it established a low-cost manufacturing site in Poland, where a capacity expansion programme has been initiated. This move is expected to enhance the group’s cost competitiveness in Europe. Concurrently, the company has shut down manufacturing sites in Leven (UK) and Hyderabad (India), aligning with its long-term footprint rationalisation strategy.
The company also reported order intake of ₹3,102 crore in FY25, a modest 3 percent YoY increase, while the order backlog declined 3 percent to ₹1,636 crore. On the cash flow front, the company delivered free cash flow of ₹318 crore, which was ₹97 crore higher than the previous year, indicating improved capital discipline.
Dividend Declaration
The board of directors has recommended a final dividend of ₹1 per equity share (face value ₹2) for FY25, subject to shareholder approval at the upcoming 62nd Annual General Meeting. Including the interim dividend, the total payout for FY25 stands at ₹2 per share. The record date for the final dividend will be announced in due course.
Stock Price Trend
The sharp fall on May 22 came despite a 14 percent gain in the stock earlier in May. GMM Pfaudler is now 24 percent below its 52-week high of ₹1,530.80, touched in August 2024, but 22 percent above its 52-week low of ₹953, hit in April 2025.
On a 12-month basis, the stock has declined 9.5 percent. Prior to May’s rally, it gained 1.17 percent in April, but saw back-to-back declines of 8.4 percent in March and 7 percent in February. In January, the stock managed a marginal 1 percent rise.
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