Shares of GMM Pfaulder soared over 15 percent on Friday after the company posted a 1,618.53 percent jump in net profit for the April-June quarter. At 9:55 am, shares of GMM Pfaulder were trading at Rs 1,557, up 15.96 percent from the previous close on BSE.

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The company, on July 28, reported a consolidated net profit of Rs 44.51 crore against Rs 2.59 in the corresponding period last year. Revenue stood at Rs 739 crore, up 34 percent year-on-year on the back of strong execution.

The EBITDA margin — a measure of a company's operating profit — grew by 672 basis points and stood at 13.2 percent for the April-June quarter.

GMM Pfaudler delivers corrosion-resistant technologies, systems, and services worldwide, primarily in the chemical and pharmaceutical industries.

Driven by the international business, order intake for the company improved by 24 percent. The company mentioned that its glass-lined equipment order intake stood strong and got multiple orders from India, China, and Europe.

In a regulatory filing, GMM Pfaudler reported that the backlog for the April-June quarter grew by 27 percent and stood at Rs 2,182 crore.

“Our focus on execution and cost controls have helped us achieve a strong June quarter performance, where we have increased the revenue and improved the margin,” said Tarak Patel, Managing Director, GMM Pfaudler.

In addition, the company announced purchasing a 100 percent stake in Hydro Air Research Italia (HARI), based in Milan, Italy, for €4.96 million (Rs 38.24 crore). Separation systems (skid-mounted units and/or turnkey plants) are designed and manufactured by the company.

A completion date of August 2022 is expected for the transaction, which will be funded through internal accruals.

“HARI’s application expertise and process know-how will be a welcome addition to our product portfolio and will augment our capabilities to enter adjacent markets and provide green technologies to our customers,” Patel said.

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(Edited by : Nishtha Pandey)