Shares of GMM Pfaudler Ltd, a leading glass-lined equipment manufacturer, surged nearly 12 percent in trade on Friday after the company reported strong revenue growth for the quarter ended June 2023.

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GMM Pfaudler said that its consolidated revenue for the June quarter stood at Rs 912 crore, up 23 percent from Rs 739 crore it reported during the same period last year, on the back of strong execution.

The company's reported operating profit or EBITDA rose by 35 percent to Rs 132 crore from Rs 98 crore in the year-ago quarter. EBITDA margin also expanded by 130 basis points to 14.5 percent.

Net profit remained flat compared to last year at Rs 54 crore from Rs 61 crore.

GMM Pfaudler said that its order backlog at the end of the June quarter stood at Rs 2,013 crore compared with Rs 2,182 crore in the same quarter a year ago.

The order backlog is consistently declining for the past few quarters: It stood at Rs 2,162 crore in the March 2023 quarter and at Rs 2,247 crore at the end of the December 2022 quarter.

The company’s order intake during the June quarter was also down 3 percent to Rs 770 crore compared with the March 2023 quarter.

The company’s managing director Tarak Patel said, “We remain on track to meet our FY25 guidance. Order intake remains subdued due to general weakness in the chemical sector. We expect that some of the customer decision making which has been delayed will come through in the next quarter.”

“Our order backlog remains stable, translating to about eight months of visibility in the international business and about six months in the India business,” he added.

Shares of GMM Pfaudler are trading 11.5 percent higher at Rs 1,616.90. The stock has turned positive on a year-to-date basis.