HLE Glascoat maintains stable growth amid strategic acquisitions and strong order book

Maroli, 10 February 2025 — HLE Glascoat Limited, a leading name in the chemical process equipment manufacturing industry, has reported stable financial results for the third quarter and the nine-month period ending 31 December 2024. The company’s growth was underpinned by a robust order book, strategic acquisitions, and consistent operational efficiency, despite fluctuating demand in certain industrial sectors.

With a consolidated revenue of ₹69,388 lakh for the nine months of fiscal year 2025, reflecting a 5% year-on-year increase, HLE Glascoat demonstrated resilience in an environment marked by sectoral shifts. The company’s earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose to ₹8,668.9 lakh, representing a 5.2% growth year-on-year, while the profit after tax (PAT) surged by 15.5% to ₹3,012.3 lakh. This financial stability is attributed to the company’s sustainable growth strategy and its commitment to operational excellence​.

How Did HLE Glascoat Achieve Growth Despite Market Challenges?

HLE Glascoat’s financial resilience is deeply rooted in its diversified product portfolio and strategic market positioning. The company manufactures a wide range of chemical process equipment, including filtration and drying systems, glass-lined equipment, and heat transfer devices. This diversification has allowed HLE Glascoat to cushion the impact of sector-specific slowdowns, especially in the industrial chemical segment, which experienced subdued demand during the reporting period.

One of the key drivers behind the company’s growth was its robust order book, which reached ₹68,323.8 lakh as of 31 December 2024, marking a 24.1% year-on-year increase. This strong pipeline has provided clear visibility into future revenue streams, enhancing investor confidence. According to Managing Director Himanshu K. Patel, the steady build-up of orders, particularly in the pharmaceutical segment, has been instrumental in maintaining topline growth. Patel highlighted that while industrial chemical demand remained soft, the pharmaceutical sector exhibited consistent traction, offering a buffer against broader market volatility.

The company’s proactive debt management strategy also contributed to its stable performance. HLE Glascoat successfully reduced its long-term and short-term debt obligations by ₹4,316.7 lakh, further strengthening its balance sheet and improving liquidity.

What Role Did Strategic Acquisitions Play in Driving Growth?

Strategic acquisitions have been a cornerstone of HLE Glascoat’s sustainable growth strategy, enabling the company to expand its market reach, diversify its product offerings, and enhance operational synergies. In September 2023, HLE Glascoat acquired a 35.56% partnership share in Kinam Engineering Industries, a move that broadened its capabilities in designing and manufacturing advanced heat exchangers and process equipment. This acquisition has already shown positive contributions to the company’s financials, as reflected in the consolidated performance figures.

In addition, the acquisition of a 26% equity stake in Clean Max Anchorage Private Limited marks a significant step towards sustainability and cost optimisation. Clean Max Anchorage is expected to commence power generation in the second half of fiscal year 2026, which will help HLE Glascoat reduce its energy costs through increased reliance on renewable energy sources. Patel noted that this investment not only aligns with the company’s sustainability goals but also promises a short payback period, enhancing overall profitability.

The company is also awaiting regulatory approval from the National Company Law Tribunal (NCLT) in Ahmedabad for the amalgamation of Kinam Enterprise Private Limited with HLE Glascoat. Once approved, this merger is expected to create additional synergies, streamline operations, and support long-term growth.

How Did Each Business Segment Perform in FY25?

HLE Glascoat’s segment-wise performance presents a mixed picture, reflecting the broader dynamics of the industries it serves. The glass-lined equipment segment emerged as a strong performer, with revenue increasing by 17.8% year-on-year to ₹13,669.4 lakh in the third quarter. This growth was driven by rising demand in pharmaceutical and specialty chemical industries, which rely heavily on glass-lined reactors and processing equipment for high-purity applications.

Conversely, the filtration, drying, and other equipment segment experienced a revenue decline of 22.9% year-on-year, primarily due to softer demand in the agrochemical and industrial chemical sectors. Despite this decline, the segment showed sequential growth compared to the previous quarter, indicating early signs of recovery.

The heat transfer equipment segment also faced challenges, with revenue dropping 23.6% year-on-year. However, the company remains optimistic about this segment’s prospects, supported by new order inflows and expanding applications in emerging markets.

What Is the Outlook for HLE Glascoat Moving Forward?

Looking ahead, HLE Glascoat remains cautiously optimistic about its growth prospects. The company expects the chemical industry to witness gradual recovery as inventory levels stabilise and demand rebounds in key markets. The pharmaceutical sector is anticipated to continue its growth trajectory, providing a steady revenue stream.

HLE Glascoat’s focus on operational efficiency, technological innovation, and strategic investments will be critical in navigating future challenges. The company’s commitment to sustainability, reflected in its Clean Max Anchorage investment, positions it well to meet evolving regulatory and environmental expectations.

Patel emphasised that the company will continue leveraging its acquisitions to drive sustainable growth, diversify risks, and expand into new industries. The robust order book, combined with strong execution capabilities, is expected to support both topline and margin growth in the coming quarters.