HLE Glascoat locked in 20% upper circuit on healthy Q3 performance

The company said that during the quarter it witnessed strong performance on the back of robust demand from the end user industry and increased efficiencies in the business

Shares of HLE Glascoat, on Monday, were locked in 20 per cent upper circuit at Rs 1,670 on the BSE after the company reported 58 per cent year on year (YoY) growth in net profit at Rs 17.16 crore for the December quarter (Q3FY21), on the back of healthy operational performance.

The company’s 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.

During the quarter, the company has witnessed strong performance on the back of robust demand from the end user industry and increased efficiencies in the business, it said.

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.

The company said that 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.

“We currently have 6 to 7 months order book for both filter dryers as well as glass lined equipment. All our end user industries - API Pharma, Specialty Chemicals, Agrochemicals, Dyes and Pigments are performing well and their outlook remains promising,” the company said.

The company continues to maintain its positive outlook for the rest of the financial year with long term focus on continuous product development to meet our customers evolving expectations, it said.

Till 10:23 am, around 51,000 equity shares had changed hands and there were pending buy orders for 49,003 shares on the BSE, the exchange data shows.