Mumbai, August 06, 2021: Hikal Ltd., a preferred long-term partner for leading global life sciences companies, announced its financial results for the quarter ended 30th June 2021.


Key Highlights

Segmental Performance for the quarter ended 30th June 2021

Commenting on the results, Jai Hiremath, Chairman & Managing Director, Hikal Ltd. said,

“I am happy to report that we have recorded a strong performance in Q1 despite the challenges posed by the second wave of the COVID-19 pandemic. We have continued the growth trajectory that the company had established over the past two quarters.

Our Pharmaceutical business has performed well, registering a YoY growth of 28% for the quarter based on increased volumes of existing API Generics and CDMO products. We have a healthy pipeline of new products, supported by our new capacities which would come on stream as a result of the capex incurred over last 12-24 months.

The Crop Protection business registered a robust YoY growth of 31% in Q1 on the back of strong volume growth of our existing products and further scaled up volumes of a new product. We expect this positive momentum to continue in the next few quarters based on a healthy pipeline of projects at various stages.

Our operations were slightly impacted by the second wave of the COVID-19 pandemic. We were directly affected by government restrictions on oxygen supply. We had to shut down one of our dedicated plants at Taloja. We used this opportunity to perform regular maintenance activities in order to mitigate the loss of production.

The Company has opted for the new tax regime, which has resulted in a higher net profit. This when considered with the reduced finance costs as a result of successful renegotiation of lower interest rates, have strengthened the financial parameters of the Company. With this added liquidity, cost reduction efforts and enhanced operational efficiency as a result of our focused business excellence initiatives, we are confident of further sustainable profitability improvement in the coming years.

In line with our vision, we have set a bold aspiration of driving profitable growth and transforming our businesses across different verticals. As part of our transformation journey, we have already engaged a leading global consulting firm to work along with us. This will enable us to pivot our growth in a sustainable manner. The journey forward will entail accelerating growth in our existing Pharmaceutical and Crop Protection businesses, as well as investing in our emerging business verticals such as Animal Health and Biocides. We are confident about the prospects of all our businesses in the near future.”