GMM Pfaudler Limited on Wednesday announced appointment of senior corporate leader, Prakash Apte as an independent director, who will succeed the current Chairman of the company S Sivaram after his retirement later this year.

In a regulatory filing, the company announced the Board of Directors has appointed Prakash Apte, Chairman of Kotak Mahindra Bank Ltd as an independent director of the company, effective May 25, 2022. The incumbent S Sivaram, Independent Director and Chairman, GMM Pfaudler, is due to retire at the ensuing 59th AGM later this year.

"Hence, it is proposed to fill up the vacancy with the said appointment. Apte shall succeed as Chairman of the company post retirement of S Sivaram," the company informed.

Quarterly results

The company also announced its financial numbers for the quarter and financial year ended March 31, 2022, with consolidated net profit of ₹17.27 crore for the quarter on consolidated revenue from operations at ₹699 crore.

In the same quarter last year, the company had posted net loss of ₹5.60 crore on revenue of ₹459 crore. The quarterly results are not comparable with the corresponding period last year, as during 2020-21, the parent firm —along with wholly-owned subsidiary Mavag AG — had acguired majority stake (54 per cent) in Pfaudler overseas business through an SPV - GMM International S.a.r.l. on a going concern basis at a consideration of ₹201.56 crore.

The company also noted the Board of Directors has approved issue of bonus equity shares in the ratio of 2:1 (two new equity shares for every one existing equity share held). The bonus shares will be credited to those shareholders who are holding equity shares on record date i.e. July 12, 2022, the company said. The Board has also recommended final dividend of ₹3 per equity share of ₹2 each (pre-bonus).

Speaking to BusinessLine, Tarak Patel, Managing Director, GMM Pfaudler commented on the bonus issue, terming it a move to reward the shareholders "who stood with us through the entire process of acquisition and integration of the business. Also, there was a lot of interest in our stock and not enough liquidity so that will also help having more people to participate in GMM Pfaudler's growth story."

During the year, the company focused on stabilising the business and ensuring no impact to the performance after integration with the parent. "The business has grown by 20 per cent across the board including India and internationally. This is phenomenal, especially the international business grew from $175 million to $230 million, which was a strong performance above expectations," Patel said.

The company however, has faced margin pressures due to escalation in input costs. "The commodity prices, especially the metal prices have increased significantly, some of which we have passed on to the customers, but some we have to absorb. That has impacted the profitability. But as soon as these start stabilising, in the next few quarters, we expect profitability to improve," said Patel.

GMM Pfaudler shares ended at ₹4511.30, down 3.4 per cent from previous close on the BSE Wednesday.