HLE Glascoat Limited, a leading player in chemical process equipment manufacturing, delivered a solid financial performance in FY25, reporting a 51.1 percent year-on-year increase in profit after tax (PAT) and healthy growth across key operational parameters. The company also strengthened its balance sheet, reduced debt, and expanded future business visibility with a robust order book of ₹57506.2 lakhs.

The company reported its audited consolidated results for the quarter and financial year ending 31st March 2025.

Strong Financial Performance in FY25

For the full financial year FY25, HLE Glascoat posted revenue from operations of ₹102758.7 lakhs, a 6.2 percent increase from FY24. The EBITDA stood at ₹14093.4 lakhs, growing 16.6 percent year-on-year, with the EBITDA margin improving to 13.7 percent from 12.5 percent a year ago.

Profit after tax (PAT) reached ₹6176.7 lakhs, a notable 51.1 percent increase, representing a PAT margin of 6.0 percent compared to 4.2 percent in FY24. This growth was attributed to better operational efficiency, improved product mix, and strategic execution.

Q4 FY25 Outperformance

The performance was particularly strong in Q4 FY25, with the company posting:

• Revenue from customers: ₹33370.7 lakhs (up 8.7 percent YoY and 44.4 percent QoQ)

• EBITDA: ₹5424.5 lakhs (up 41.1 percent YoY, margin of 16.3 percent)

• PAT: ₹3164.4 lakhs (up 113.8 percent YoY, PAT margin at 9.5 percent)

The fourth quarter reflected significant operating leverage, which contributed to enhanced profitability and margins.

Segment Performance

HLE Glascoat’s business comprises three core segments – Filtration, Drying and Other Equipment, Glass Lined Equipment, and Heat Transfer Equipment. Among these:

• Glass Lined Equipment delivered strong growth with FY25 revenue of ₹58213.2 lakhs, up 17.2 percent YoY, and EBIT growing 84.5 percent YoY to ₹5351.2 lakhs

• Heat Transfer Equipment segment saw a 37.7 percent revenue growth, reaching ₹12215 lakhs in FY25

• Filtration and Drying segment faced a revenue decline of 16 percent, though QoQ numbers showed signs of recovery

The company's emphasis on higher-margin and strategically important product segments like glass-lined and heat transfer equipment has begun yielding results.

Debt Reduction and Dividend Declaration

HLE Glascoat continued its focus on balance sheet strengthening by reducing its long-term and short-term debt obligations by ₹4976.5 lakhs during the year. This prudent financial management has improved the company’s leverage profile and sets a strong foundation for sustainable growth.

In recognition of its strong performance, the Board of Directors has proposed a dividend of 55 percent (₹1.10 per equity share) for FY25.

Strategic Milestones

HLE Glascoat achieved multiple operational and strategic milestones during FY25:

• The company inaugurated a new Centre of Excellence at Anand, Gujarat. This state-of-the-art facility is aimed at deepening technical capabilities, accelerating innovation, and enhancing customer engagement

• The subsidiary Kinam Engineering Industries, in which HLE holds a 35.56 percent partnership share, started deliveries for its first major oil and gas order, marking entry into a new high-potential vertical

• The Scheme of Amalgamation of Kinam Enterprise Private Limited with HLE Glascoat is currently under review, with the final NCLT hearing scheduled for July 2025

These strategic actions demonstrate HLE Glascoat’s ongoing transformation into a technologically advanced and diversified process equipment company.

Industry Tailwinds and Outlook

The company is well-positioned to benefit from positive macro and industry trends, including:

• Increased global outsourcing to India in the chemical and pharmaceutical sectors

• Supply chain diversification by multinational corporations

• A domestic push for capacity expansion and modernization in the process industries

As India’s process sectors embrace advanced and sustainable manufacturing, the demand for high-quality, application-specific process equipment remains strong. HLE Glascoat is leveraging its engineering strengths, design capabilities, and customer-centric approach to meet this growing demand.

Management Commentary

Mr. Himanshu K. Patel, Managing Director of HLE Glascoat, expressed satisfaction with the company’s FY25 performance:

"FY25 marked a year of strong execution and meaningful strategic progress. Our PAT surged by 51.1 percent YoY to ₹6176.7 lakhs, while Q4 PAT more than doubled YoY, highlighting improved operational leverage. We enter FY26 with an order book of ₹57506.2 lakhs, giving us strong revenue visibility."

He further added, "The inauguration of our Centre of Excellence and Kinam’s entry into the oil and gas sector mark important steps toward broadening our growth avenues. We remain focused on delivering value through innovation, reliability, and operational excellence."

Company Overview

HLE Glascoat is a trusted name in chemical process equipment, particularly in filtration and drying systems. Its flagship products include Agitated Nutsche Filters and Dryers, and it is also a leading manufacturer of glass-lined reactors, columns, heat exchangers, and pressure vessels.

The company operates four manufacturing plants in Western India and one in Germany (Thaletec GmbH). Its operations feature robotic welding, SCADA-controlled furnaces, and other advanced automation systems to ensure precision and repeatability.

With the acquisition of Thaletec GmbH in December 2021 and Kinam Engineering’s stake in 2023, HLE Glascoat has cemented its presence in both domestic and international markets, serving clients across agrochemicals, specialty chemicals, pharmaceuticals, dyes and pigments, and more.

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