Ahmedabad, July 29 Glass-lined equipment maker GMM Pfaudler Ltd has signed an agreement to acquire Italy-based advanced separation technology player Hydro Air Research Italia S.r.l. (HARI) for Euro 4.96 million (approximately Rs 38.24 crore).

In a regulatory filing, the company said it would acquire 100 per cent shares of HARI from Ainvest Private Equity S.r.l. The transaction, to be funded through internal accruals, is expected to be completed in August 2022, it added. The company’s shares rallied to hit an intra-day high of Rs 1,587 on the BSE on Friday, gaining nearly 18 per cent.

HARI recorded an annual turnover of Euro 7.9 million in 2021. Headquartered in Milan, Italy, the company designs and manufactures advanced separation systems for process applications with modern membrane separation systems for the pharmaceuticals, chemicals, food, dairy and energy sector. HARI recently entered high-growth sectors such as plant-based proteins, bioplastics and lithium purification (raw material for batteries for electric mobility).

Financial results

The company reported a consolidated net profit of Rs 61.47 crore for the quarter ended June 30, 2022, as against a net loss of Rs 18.40 crore in the comparable quarter last year. Quarterly revenues from operations rose 34 per cent to Rs 739 crore, from Rs 552 crore recorded in the same quarter last year.

Total expenses increased by 20 per cent year-on-year to Rs 684 crore from Rs 569 crore a year ago.

On consolidated basis, revenues from the domestic market stood at Rs 216.65 crore during the quarter, up 41 per cent from Rs 154 crore in the corresponding quarter last year. Overseas revenues stood at Rs 523 crore, up 31 per cent from Rs 397 crore a year ago.

GMM Pfaudler shares gained by over 17 per cent on Friday to trade at Rs 1,573.65 in early trade on BSE.

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