HLE Glascoat’s shares went down by 0.55 per cent after the company reported a 39 per cent decrease in profit for the quarter ended June 30, 2023, at Rs 9.29 crore, compared to Rs 15.37 crore during the corresponding quarter last year.
The company’s revenues were down by 3.5 per cent to Rs 197.18 crore, compared to Rs 204.42 crore last year.
Sequentially, the company’s profits were lower by 59 per cent, compared to Rs 22.79 crore in the previous quarter.
The company has announced acquisition of 70 per cent controlling stake in Kinam Engineering Industries’ heat exchanger business. Kinam will retain its brand identity and continue as a separate entity.
For the fiscal year ending on March 31, 2023, Kinam reported a revenue of Rs 122.07 crore and a net profit before tax of Rs 24.86 crore. The first phase of the acquisition involves HLE Glascoat becoming a partner by acquiring a 35.56 per cent profit share and ownership interest directly from Kinam’s partners. The remaining 34.44 per cent stake will be acquired through a scheme of arrangement involving Kinam Enterprises Private Limited, subject to regulatory approvals. The acquisition would be completed by the end of the second quarter of FY2024.
The shares stood at Rs 598 at 10.00 am on BSE.