HLE Glascoat is engaged in the specialized business of manufacturing chemical process equipment, with leaders in filtration and dryers and second largest player in the Indian glass lined equipment market.
In Q3FY21, the company reported 58 per cent year on year (YoY) growth in net profit at Rs 17.16 crore, on the back of healthy operational performance. In comparison, the S&P BSE Sensex declined 1.9 per cent during the period. Its total revenue grew 23 per cent YoY at Rs 132.50 crore. The earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 44 per cent YoY at Rs 29.70 crore, while margins improved 903 basis points (bps) to 29.7 per cent from 20.67 per cent in a year ago quarter.
The company said that during the quarter, the company witnessed strong performance on the back of robust demand from the end user industry and increased efficiencies in the business. The order book of 6 -7 months for both filter dryers and glass lined equipment. The order book for both the segments continued to remain strong and the delivery schedule continues to remain stretched, reflecting the robust nature of the order flow and the sustained demand.
Over the next two years, the management said, it will be seeing significant capex being announced by end user industry which will translate into growth opportunities. The company is in the process of expanding capacities in both, the Filtration & Drying Equipment segment as well as the Glass Lined Equipment segment.
The installation of additional Gas Fired Furnaces is under way at the Anand facility. These will boost glass lining capacity by nearly 25 per cent and reduce the per unit power and fuel costs further. The new furnace is expected to be operational by Q1 FY2022.
The company has also planned addition of new manufacturing shed adjacent to the existing facility at Maroli adding over 25 per cent more floor area for manufacturing of Filtration and Drying Equipment. The implementation is likely to be completed in 9 to 12 months, it said.
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