Total expenses fell 1.4% to Rs 174.01 crore in Q1 June 2023 over Q1 June 2022. During the quarter, cost of materials consumed stood at Rs 108.93 crore (up 13.4% YoY) while employee benefits expense was at Rs 42.03 crore (up 17.3% YoY).

Meanwhile, HLE Glascoat has signed definitive agreements to acquire a 70% stake in Kinam Engineering Industries. Kinam is known for its expertise in designing and manufacturing various types of heat exchangers, pressure vessels, and process equipment, catering to industries such as chemicals, petrochemicals, refineries, and more. The acquisition will be carried out in phases, with Kinam maintaining its brand identity and operating as a separate business entity. This strategic move will enable HLE Glascoat to strengthen its presence in the specialized process equipment markets and expand its product portfolio with innovative technology. The acquisition is expected to bring operational synergies, efficiency improvements, and optimization of both businesses.

Revenue of the acquired entity was Rs 122.07 crore for the year ended 31 March 2023 and earned net profit before tax of Rs 24.86 crore.

HLE Glascoat will acquire a 35.56% profit share and ownership interest in Kinam in an all-cash transaction directly from its partners, Kirit Mehta and Mehul Mehta and HLE Glascoat will be admitted as a partner of the Firm in the first phase.

The balance 34.44% stake will be acquired by a scheme of arrangement whereby Kinam Enterprises, the holding company of one of the partners in Kinam will amalgamate into HLE Glascoat. Such amalgamation will be pursued in due course and will be separately considered and approved by the HLE Glascoat board, and then submitted to the stock exchanges and the Honourable National Company Law Tribunal for approval. The acquisition will result in the accretion to business, key technology and rich experience garnered by Kinam over the last four decades.

HLE Glascoat is a leading manufacturer of process equipment for the chemical and pharmaceutical industries. Over the last three decades, it has established itself as a market leader in Filtration and Drying Equipment and is a leading manufacturer of Glass Lined Equipment globally. It manufactures a wide range of chemical processing equipment in an equally wide range of materials for some of the most demanding applications. It has the capabilities to provide process solutions and equipment in complex chemical manufacturing applications across diverse industries and is presently the world's largest manufacturer of Agitated Nutsche Filter Dryers (ANFDs).