I am pleased to present our 30th Annual Report for the year 2020-21 andinform all of you that we have performed well during the fiscal despite the unprecedentedchallenges.
The financial year 2020-21 was marked by a global pandemic namely novel coronavirus(COVID-19) which brought the global economy to its knees.
To counter the pandemic India opted for a nationwide voluntary lockdown whichdisrupted economic activities and trade across the country resulting in a contraction ofthe Indian economy by 8% during the fiscal.
Despite the challenges throughout the year following the onset of the pandemic we arehappy to report a total income of Rs. 48842.25 Lakhs in 2020-21 compared to Rs.43121.16 Lakhs in 2019-20 clocking a y-o-y growth of 13.27% on the back of a strongorder book and a sharp focus on our strategic priorities. The first quarter of the fiscalsuffered a setback owing to the lockdown. The second quarter saw a little relief beforepicking up and seeing rapid recovery from the starting of third quarter.
Strategic focus areas
Continuous product category expansion to cater to ever-changing customer needsand retain its position in the market as a one-stop solution provider
Consistent scaling of capacity to cater to the increasing demand acrossgeographies
Progressive geographic expansion ensuring both expanding to new markets anddeepening penetration in existing markets
Operational and financial performance
On the back of our strategic priorities we have successfully sustained our operationaland financial performance. During the fiscal we also saw our EBITDA growing by 25.39%y-o-y to reach Rs. 9558.77 Lakhs over Rs. 7623.15 Lakhs in 2019-20.
Further our profit after tax stood strong at Rs. 5337.10 Lakhs in 2020-21 compared toRs. 3919.98 Lakhs in 2019-20 registering a y-o-y growth of 36.15%.
Further in the year under review the revenue from filtration and drying equipment hasincreased by 21.27% y-o-y and glass-lined equipment segments has increased by 31.28%y-o-y. This performance was delivered despite our gradual exit from our chemicalmanufacturing business segment. As a result we have also planned to use the land whichhoused our chemical plants for the expansion of our filtration and drying equipmentbusiness.
During the fiscal 2020-21 we have initiated a major greenfield expansion at Silvassaand a capacity enhancement at Maroli works for manufacturing filtration and dryingproducts. We also embarked on a capacity expansion plan at Anand works wherein additionalfurnaces were acquired to scale the capacity by around 25% and is expected to becompleted by the first quarter of 2021-22.
Built on values
At HLE Glascoat Limited we believe that our passion is what drives us.
Over the decades we have fortified our presence globally as a process equipmentmanufacturer on the back of our strong ethical pedigree which stands on 3 foundationpillars - passion excellence and integrity.
During the fiscal 2020-21 we continued with our endeavour of creating value for allour stakeholders with the help of a capable and passionate team which works in accordancewith best-in-class manufacturing standards and delivers world-class innovations.
Read more on pages 14-21
Response to COVID-19
The COVID-19 pandemic affected our performance in the first two quarters of the fiscal2020-21. The nationwide lockdown marked the beginning of the fiscal. Being a supplier tothe pharmaceutical industry we applied for a special permission to continue ouroperations aiding the essential services sector. To ensure business sustenance weprepared a standard response protocol for the pandemic under which we ensured resumingbusiness operations post receiving the permission from government in accordance with theguidelines and protocols set by the Indian government. Post the lifting of lockdownrestrictions we resumed operation at full throttle with the entire workforce. In order toensure health and safety of our employees we maintained proper social distancing normsnot only in the manufacturing units but also across our corporate offices in addition toperiodic sanitisation and temperature checks.
We have sharpened our focus on growing our top line and bottomline in the foreseeablefuture by our consistent focus on strategic priorities. Under these priorities we arefocussed on diversifying our product basket ramping up capacities and expanding ourfootprint across the country.
During the fiscal 2020-21 we planned a capacity expansion in our Maroli plant thatwould help us scale our filtration and drying equipment capacity by 25% and would becompleted by the end of 2021-22. Further we have also planned to set up a newmanufacturing unit at Silvassa for filtration and drying equipment by the end of 2021-22.
I would like to thank the members of the Board for their support and counsel. I wouldalso like to express my warm regards to our entire team who have unwaveringly contributedto the growth and development of HLE Glascoat Limited in the whirlwind of a year that hasgone by. I would like to express my appreciation for the faith and trust shown by ourcustomers shareholders and investors.
Chairperson and Managing Director.