Hikal Ltd. announced its financial results for the quarter ended June 30, 2020. The company’s revenue stood at Rs 352.8 crore, a decline of 12% yoy than Rs 403.2 crore in Q1FY20. Adjusted EBITDA registered was Rs 57.3 crore, EBITDA Margin of 16.2%. 

 

The net profit of the company declined by 41% YoY and stood at Rs 15 crore from Rs 25.2 crore in the same period last year.

 

Pharmaceutical sales went up by 5% to Rs 213.7 crore as compared to Rs 203.9 crore in the corresponding period of the previous year. Recovery in operationalised by improved volume off-take by customers. Commissioning of additional capacity enabled to meet higher demand. Post relaxation of Nation-wide lockdown, the operations ramping up steadily at Bangalore and Panoli facilities.

 

Crop Protection sales went down by 30% at Rs 139.1 crore as compared to Rs 199.3 crore in the corresponding period of the previous year. Covid-19 pandemic lockdown impacted the global customer’s operations during the quarter leading to deferment of volume off-take Repeat local lockdowns in Maharashtra (Taloja and Mahad Site) further impacted the production schedule which were already disrupted due to Nation-wide lockdown.

 

“The revenue in Q1 has been lower by 12% compared to Q1 last year however, with better operational efficiencies we were able to improve our Gross Profit Margins. Our operations were at sub-optimal levels due to the nationwide lockdown and our fixed costs were greater due to the Pandemic which were not absorbed fully thereby impacting our operating profit margins. The performance for the quarter has been impacted by a Covid expense of Rs 4.7 crore towards employee benefits and other additional costs incurred to mitigate the effect of the pandemic and help society at large,” Jai Hiremath, Chairman & Managing Director, Hikal Ltd said.

 

“Our Crop Protection Division saw a revenue dip of 30% in Q1 as compared to corresponding period last year mainly due to several headwinds faced by our global customers which resulted in deferment of volume offtake. Restrictions imposed by State Government in Maharashtra where both our crop protection plants are located also led to lower production and sales. Our Pharmaceutical Division has reported a growth of 5% in top line led by improved capacity ramp-up and better volume off-take by customers,” he added.