[Himanshu Patel has ceased to be the Chairperson effective from April 1,2022]
During the year, all our plants were working at high capacities. Our healthy order book
combined with increased production capacities expected to result is stronger despatches
and sales in the coming quarters.
Dear Shareholders,
I hope you and your families are healthy and safe. We have been through over two years
of challenging times posed by the COVID-19 pandemic. The impact continues to be felt with
supply chain disruptions and steep increase in energy, logistics and other input costs.
The commendable efforts by the medical fraternity, governments and various organisations
have enabled the return to normalcy. Consequently, FY 2021-22 witnessed a faster than
expected demand recovery and revival in business confidence with the Indian economy
growing by 8.7% during the year.
OUR PERFORMANCE
Our consolidated revenue for FY 2021-22 stood at Rs. 65,221.82 Lakhs as against Rs.
48,448.93 Lakhs in FY 2020-21, marking a growth of 35%. Growth was primarily driven by
strong order book for both filtration and drying equipment and glass- lined equipment
businesses along with continued robust demand from end-user industries as well as the
acquisition of Thaletec GmbH in December 2021.
During the year, all our plants were working at high capacities. Our healthy order book
combined with increased production capacities is expected to result in stronger despatches
and sales in the coming quarters. This demonstrates our team's consistent efforts in
delivering outstanding performance amidst a tough external environment.
During the year, we saw our consolidated EBITDA growing by 23% to reach Rs.11,776.38
Lakhs over Rs. 9,558.77 Lakhs in the previous year. Profit after tax increased by 9% to
Rs. 5,823.34 Lakhs in FY 2021-22 from Rs. 5,337.10 Lakhs in FY 202021, despite an
exceptional charge of Rs. 911.42 Lakhs.
Further, the revenue from filtration and drying equipment and glass- lined equipment
segments increased considerably by 30% and 65%, respectively, in FY 2021-22. EBIT growth
for filtration, drying, and other equipment during the year stood at 5% whilst the same
for glass-lined equipment stood strong at 69% over the previous fiscal.
STRATEGIC EXECUTION OF OUR GROWTH PLANS
We are introducing improved products and technologies across all business segments to
serve the evolving demands of the customers, particularly in the MSME sector. We believe
that MSME as a sector has tremendous potential; therefore, the team is focused on adding
newer customers from this segment. We also plan to expand geographically with a renewed
thrust on global markets for both the key product segments. This will make our business
model more resilient operationally as we diversify our customer base.
At the same time, we are focused on developing unmatched execution capabilities by
strengthening our leadership team to execute the Company's vision and growth strategy.
Towards this, we intend to make senior level hires in our operations and support
functions.
Now, let me give you an overview of our capacity expansion programmes at Maroli,
Silvassa, and Anand plants.
We have spent approximately Rs. 1,500 Lakhs for adding new manufacturing sheds at the
Maroli plant, which will augment the floor area by about 40% for the manufacturing of
filtration, drying, and other equipment. This additional capacity was commissioned in
March 2022.
We have also completed and commenced operations of the Greenfield plant at Silvassa to
augment the manufacturing capacity for the filtration and drying equipment. This new
facility is spread across approx. 20,300 sq. metres of land with a built- up area of 8,591
sq. metres. The unit is equipped with a state-of-the-art machine shop, critical equipment,
and EOT cranes which comply with the highest standards of safety.
Finally, we have added dedicated furnaces for components and critical equipment at the
Anand facility. This will result in increased availability of baking capacity in the six
main furnaces, four being electric furnaces and two being gas-fired furnaces. This
additional capacity was commissioned in the third quarter of the financial year.
With these developments, we stand to reap the benefits of robust product demand and
higher production capacities in the coming years.
Orbicular Dryer, Rapid Disc Dryer Cooler, and Glass-Lined Mixer Settler, among others,
are some of our noteworthy product introductions during the year. Our production team
continuously strives to improve man and material flow on the shop floor which will lead to
better utilisation of equipment, optimal manpower usage, and improved throughput time.
Lastly, as you all are informed, the Thaletec GmbH acquisition was successfully
completed in December 2021 after receiving all required regulatory approvals. With this
acquisition, we are in a position to augment our consolidated revenues and profits whilst
also reaping the benefits of multiple synergies and complementary capabilities of the two
companies across geographies.
BUSINESS OUTLOOK
We are sharply focused on making our Company future-ready and drive sustained, high
growth. Going forward, we intend to augment our market share in the filtration, drying,
and glass-lined equipment in India and abroad, whilst continuing to focus on innovations
and improved quality to meet customer needs.
The end-user industries are continuing to perform well; and the increase in our
manufacturing capacities will further augment the business activity and growth across all
segments. The Thaletec acquisition has opened a plethora of opportunities to penetrate
newer markets in Germany and other European countries for the filtration and drying
equipment, for which we already enjoy a leadership position in India.
Both HLE Glascoat and Thaletec are exploring possibilities of capitalising on each
other's strong areas of manufacturing and distribution, glass lining and application
technologies, cost synergies, and intend to launch first-of-its-kind products in the
Indian market.
CONCLUSION
I would like to take this opportunity to thank our Board members and our stakeholders
for their continued guidance and support on our exciting journey. I also thank our team
members for their hard work and dedication to overcome the challenging times and
contribute to the growth and success of the organisation.
Regards,
Himanshu Patel
Managing Director
[Himanshu Patel has ceased to be the Chairperson effective from April 1, 2022].