Shares of HLE Glascoat Ltd slipped 5 percent to Rs 608.90 at 10:17 am on August 8, after the company’s June quarter net profit declined year-on-year (YoY).
The company’s quarterly net profit came in at Rs 9.29 crore in June 2023 down 39.61 percent from Rs 15.38 crore in June 2022.
The Gujarat-based company, engaged in the manufacturing of process equipment, revenue stood at Rs 197 crore during the period under review, down 3.5 percent YoY. In the corresponding quarter last year, HLE Glascoat posted total revenue of Rs 204 crore.
On the operating front, earnings before interest, taxes, depreciation and amortization (EBITDA) stood at Rs 23 crore in June 2023 down 17.4 percent from Rs 28 crore in June 2022. Margins contracted by 196 bps YoY to 11.7 percent vs 13.7 percent.
As per the regulatory filling, HLE Glascoat is to acquire controlling stake in the heat exchanger business of Kinam Engineering Industries as a part of its strategy to strengthen its position further in the specialized process equipment markets. As a part of the deal, both HLE Glascoat and Kinam have mutually agreed that Kinam will continue to have its distinct brand identity and will continue to grow and expand as a separate business entity post the transaction.
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