Pharmaceuticals firm Hikal announced Q3FY23 results: Q3FY23: Revenue of Rs 540 crore YoY growth of 5% EBITDA of Rs 75 crore QoQ growth of 7% PAT stood at Rs 26 crore. Hikal’s long-term credit rating is maintained at A+ by ICRA. Interim Dividend of Rs 0.60 per share (30% of Face Value). Commenting on the results, Jai Hiremath, Executive Chairman, of Hikal Ltd. said, “Hikal has recorded an improved performance in this quarter in line with earlier guidance of a sequential recovery. We had an improvement in EBITDA margins on the back of several cost-improvement initiatives. We are witnessing softening of key raw material prices and we expect the trend to stabilize in the upcoming quarter. The revenue for the Crop Protection business stood at Rs 248 crore in Q3FY22. We are focusing on the optimal product mix to improve revenues and margins going forward. We are in the process of commissioning our new multipurpose facility at Panoli for the launch of our new products. Our Pharmaceuticals business has registered a YoY revenue growth of 9% and revenue stood at Rs 292 crore for the quarter based on increased volumes of CDMO products. We have a strong pipeline of products in various stages of development. We are focusing on cost-improvement initiatives to improve margins for existing APIs and improve penetration of new products across different geographies. Our new Animal Health Multipurpose facility is on track and expected to be commissioned in Q2FY24. The board has approved an interim dividend of Rs 0.60 per share which translates to 30% of the Face Value. Hikal has partnered with a leading global ESG consultant to build the sustainability strategy for the reduction of carbon footprint across the value chain of Hikal to better understand the needs of all our stakeholders, colleagues, partners and communities in which we operate. As part of our commitment to doing business in a responsible way, we are taking several initiatives to ensure clean energy, reduction of carbon footprint, and reduction of waste generation across all our sites. We have further increased renewable power by signing long-term agreements for our Panoli, Taloja and Mahad sites. Pinnacle, our business transformation initiative, is on track to create a robust roadmap across business verticals to drive profitable and sustainable growth over the next five years through a focused strategic direction. We continue to monitor the macro-economic environment, rising interest rates, the impact of China opening, rising energy costs and the ongoing geopolitical unrest. Both of our businesses have a strong growth outlook. We aspire to deliver sustainable and profitable volume-led growth over the medium term.” Result PDF
Pharmaceutical company Hikal announced Q2FY23 results: Revenue of Rs. 559 crore; YoY growth of 19% EBITDA of Rs. 70 crore PAT stood at Rs. 25 crores Hikal’s long-term credit rating is maintained at A+ by ICRA Pharmaceutical sales grew 4% YoY and stood at Rs. 290 crore as compared to Rs. 280 crore in Q2 FY22 Crop Protection sales grew by 42% at Rs. 269 crore as compared to Rs. 190 crore in Q2 FY22 Commenting on the results, Jai Hiremath, Executive Chairman, Hikal Ltd. said, “Hikal has recorded a steady performance in Q2 in line with earlier guidance of a sequential recovery as we continue to move towards resuming our strong growth trajectory. In Q2, we achieved the highestever quarterly revenue in the history of Hikal, backed by strong demand in our Crop Protection business. We continue to keep an eye on the macro-economic environment, any potential for supply chain disruption, rising energy costs and the ongoing geopolitical unrest. The Crop Protection business, with Rs 269 Crores revenues in Q2 FY23, witnessed a strong growth of 42% on a YoY basis on the back of robust demand from customers in both own products and CDMO segments. We expect this momentum to continue in the next few quarters. We have received several new enquires from global innovator companies which are at various stages of execution. The commissioning of the new Crop Protection multipurpose facility at Panoli, Gujarat will be in Q4 FY23 The Pharma division business revenue stood at INR 290 Cr registering a 4% growth on a YoY basis. Soft demand, as well as pricing pressures in the end market, continue to be a concern. We have commercialized two NCE advanced intermediate with large potential for global innovator companies. Cost improvement programs, softening of raw material prices and optimal product mix will improve margins going forward. Our new Animal Health multipurpose facility is expected to come on stream by the first half of next calendar year. Our efforts to develop alternate suppliers to reduce dependence on a single geography or vendor is on track and will help us in being a partner of choice to our global customers. To mitigate the increase in energy costs, we are further implementing renewable energy projects which will help reduce costs and lower our carbon footprint significantly. We are continuing our strategic transformation journey, ‘Pinnacle Program’. Ongoing initiatives will help to reach our bold aspiration of driving profitable as well as sustainable growth. Significant progress is being made in building capabilities in terms of resources as well as infrastructure. We expect to see a positive momentum in both businesses in the medium to long term.” Result PDF