Industrial Machinery company HLE Glascoat announced Q4FY24 results:
- The consolidated Revenue for the Q4FY24 stood at Rs 30,689.8 lakh, achieving a growth of 2.9% on YoY basis.
- EBITDA stood at Rs 3,845.4 lakh with an EBITDA margin of 12.5% in Q4FY24
- PAT stood at Rs 1,480.2 lakh with a PAT margin of 4.8% in Q4FY24
Operating Highlights:
- Strong Orderbook as at March 2024 end of Rs 47,936.07 lakhs.
- Orderbook provides visibility of 4 months for the India business and 9-10 months for the Thaletec business.
- The Board had approved the Scheme of Amalgamation of Kinam Enterprise Private Limited with HLE Glascoat Limited. Consequent to the Scheme, the Company will acquire the control over the balance 34.44% shares (to make it 70% controlling stake) in Kinam Engineering Industries Private Limited.
- Thaletec, India has started receiving orders for the innovative range of products of Thaletec in India. The initial response is extremely encouraging.
- ICRA has reaffirmed the long-term rating at ICRA A, and also reaffirmed the short-term ratingat ICRA A2 . The Outlook on the long-term rating is Stable
Commenting on the Results, Himanshu Patel, Managing Director said, “The global geopolitical landscape remains challenging, marked by ongoing conflicts and significant elections worldwide. These events are poised to influence the direction of the global economy. Major central banks have hinted at potential rate cuts throughout the year; however, the persistent lack of progress on global inflation remains a concern.
In the chemical sector, we continued to witness demand slackness due to dumping and lower capacity utilization caused by international events. The sector also faces headwinds from inventory rationalization. Despite these challenges, there has been some positive commentary from large chemical companies indicating an improvement in the fourth quarter, with further recovery expected to pick up pace in the second half of FY25.
Globally, the rise in energy prices due to war has further impacted demand, but the impending issue of inventory destocking seems to be nearing an end. The overall order book is showing gradual improvement. There is growing anticipation of a rise in exports from Indian chemical companies, albeit at a lower rate than initially expected for FY25 after a challenging FY24.
Regarding our operations, our Indian glass-lined equipment segment experienced slow performance due to demand weakness. Nonetheless, we remain committed to our growth strategy. Our earlier acquisition of Thaletech GmbH has allowed us to introduce the Thaletec products to the Indian market. Additionally, our strategic acquisition of Kinam Engineering Industries aligns well with our product diversification strategy and expand our product offerings. Despite the challenging market conditions, we are focused on growing in size and enhancing our capabilities. Thank you for your continued support and confidence in our Company.”