GMM Pfaudler Ltd (GMM), for Q1FY21, reported a weak set of numbers. Revenue marginally grew by 2.8% YoY to INR 1544mn (est INR 1721mn) mainly due to fewer production days (two months) led by the extended lockdown. However, Q1FY21 revenue includes execution of a deferred order of Q4FY20 worth INR 150mn-200mn.EBITDA remained flat at INR275mn (est INR342mn) with 55ps YoY decline in margin from 18.4% in Q1FY20 to 17.8% in Q1FY21, due to adverse product mix mainly impacted by proprietary business, where EBIT margin declined by 755bps on YoY basis with 23% contribution in consolidated revenue. However, the Heavy engineering business has reported a strong growth of 565% in revenue along with 21.3% EBIT margin (vs 2.8%YoY) in Q1FY21. This, we believe partly led...