Thread by @ValueEducator

#GmmPfaudler Q3 2022 Concall Highlights

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Operational Highlights

1. Revenues for Q3FY22 stood at ₹209 Cr from ₹166 Cr in same quarter previous year translating the growth of 26% YoY

2. EBITDA stood at ₹38 Cr with EBITDA margins at 18.1%

Operational Highlights :

1. Order intake in international business continues to remain strong with an increase of around 46% for nine months.

Order intake in India business continues to remain strong with an increase of around 39% for nine months

2. Higher input cost and investment in our new facilities, which are basically Vatva, and Hyderabad has impacted profitability in this quarter

3. High steel prices worked in favour as old inventory was utilised at higher market price but new inventory impact could be visible in next quarter. Also hit by a one-time increase in gas prices in Gujarat during this quarter.

4. The US business has not been affected at all by energy. The price of steel has gone up, but they've been able to pass it on quite well. However, UK and Germany have been hit by higher energy costs

5. As of December end debt stood at ₹525 crores on consolidated basis and ₹300 crores of cash and cash equivalents

6. Plants in Germany, Italy, China, US, and Brazil are highly utilised and are growing faster than originally as anticipated.

7. 80% of the work has now shifted from the Karamsad facility to the Vatva facility.

8. Indian markets are volume driven whereas export markets are more high margin oriented.

9. GMM standalone has ₹570 crores of order backlog, ₹200 crores of GLE, ₹240 on account of HE and PP is another ₹120 crores.

10. Europe and US, both have been very very active in the last six to nine months and trend will continue for probably another six months to a year, currently the industry cycle is definitely on the up and there will be definitely investments coming in

11. Even if the market were to slow down at some point, there would be a high installed base on GMM Pfaudler or Pfaudler made equipment. So that would obviously create recurring business in aftermarket through maintenance and spare parts requirement,

Orders Received

1. South Korea for Acid Recovery in the range of $10 million.

2. Filtration and Drying order in Europe for $6 million.

3. The Mavag backlog currently stands at $38 million.

4. Systems order from France for about €3 million as well

5. First micro reactor order from a pharmaceutical company

6. A large glass lined order from Bangladesh,

7. A large Mixion order and then we got a large heavy engineering order to the tune of ₹50 crores which will really help push and grow the heavy engineering business.

Capex

1. The new furnace in Brazil is operational. The one in Hyderabad will be operational in about two weeks.

2. Expecting the new furnace in Gujarat to be operational by June 2022