Hikal Limited Q3FY21 Record breaking performance backed by strong product portfolio and strategic geographic expansion

04 Feb 2021

Revenue of Rs. 463 crores; YoY growth of 15%
EBITDA of Rs. 91 crores; YoY growth of 21%
EBITDA Margin of 19.7%; Expansion of 99 bps
PAT of Rs. 40 crores; YoY growth of 42%
Interim Dividend of Rs.1.00 per share (50 % of Face Value of Rs. 2 per share)

India, February 04, 2021: Hikal Ltd., a preferred long-term partner for leading global life sciences companies, today announced its financial results for the quarter and nine months ended 31st December 2020.

Key Highlights

Better sales volumes of new and existing products as well as penetration in new markets led to record breaking performance.
Steady improvement in EBITDA Margins continues aided by products portfolio as well as geographic expansion.
Pharmaceutical sales up by 8% to Rs. 269 croresas compared to Rs. 248 croresin the corresponding period of the previous year
1. Continued customer demand provides a positive outlook on the business.
2. Strong pipeline of new products in Contract Manufacturing and Generics
3. Business excellence initiatives yielding better utilization of production capacities.

Crop Protection sales up by 25% at Rs. 194 crores as compared to Rs. 156 crores in the corresponding period of the previous year
1. Strong pipeline of inquiries and new products under commercialization
2. Business excellence initiatives driving better throughput

Commenting on the results, Jai Hiremath, Chairman & Managing Director, Hikal Ltd. said,
“I am pleased to report that we have achieved the highest ever quarterly revenue and net profit as a company. After facing several challenges through the pandemic both our businesses are now back on track.

The Crop Protection business has grown significantly by 25% for the quarter on the growth of new products and higher volumes of existing products. We have a healthy pipeline of new projects in the business and expect to commercialize several products soon.

Our Pharmaceutical division sales were up by 8% for the quarter as compared to the same period last year. Both our generics and contract manufacturing businesses continue to do well as we expand ourproduct portfolio and geographic diversification. We have received several new inquiries from global customers looking to diversify their supply chain and are confident that the division will continue to do well over the next several quarters.

Our EBITDA margins improved significantly in the quarter as several of our business excellence initiatives have started yielding results. We continue to generate positive free cash flows as a result of increased sales and margins. We expect to continue this momentum as we go forward. Our capex plans are on track and we are expediting the execution to meet the increased demand of our customers.

ICRA has reinforced the Credit Rating of the company at “A”, indicating improvement in the overall business and strong cash flows. We have reduced our total borrowing costs and we expect to further reduce the overall interest rates in the quarters to come.

We see significant tailwinds in both our businesses and are confident that growth momentum will continue throughout this year into the next year for both our divisions.”

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