Hikal Limited reported Q3 FY22 profit of Rs. 45 crore showing YoY growth of 12% and reported quarterly revenue of Rs. 515 crore, a growth of 11%.  

Commenting on the results, Jai Hiremath, Chairman & Managing Director, Hikal Ltd. said, “Hikal has recorded a resilient performance in Q3 as we continued the growth trajectory that the company has established over the past few quarters. Despite the hurdles presented by global supply chain challenges combined with increasing raw material as well as utility prices, we have been able to grow our revenues as well as bottom line in the past quarter.

"The Pharmaceutical business was flat at Rs. 268 crore in Q3 FY22 due to a slower offtake by several customers. We are in dialogue with our customers to pass on the rise in the input prices. This process generally has a lag of a few months which can be seen in the muted segmental profitability for the business. We continued to receive several new enquiries from global innovator companies regarding collaborations in our CDMO business segment. We also expect the demand to stay buoyant on our own products business in the coming quarters," says Hiremath.

"The Crop Protection business with Rs. 246 crore revenue in Q3 FY22 witnessed a growth of 27% on a YoY basis, on the back of higher demand from our leading CDMO customers. Several new enquiries for potential partnerships in our CDMO business segment were received. We expect this momentum to continue in the next several quarters. Sales of our own products faced challenges of raw material availability. However, we expect the supply to normalize in the coming months, providing a further boost to our Crop protection business," commented Hiremath.

Both of our businesses are seeing strong tailwinds with respect to the prevailing China plus one sentiment. We continue to invest in developing new products, capabilities and building new capacities considering our future business prospects. Our strategy to integrate backward and to develop alternate sourcing partners is yielding results in terms of sustainability," said Hiremath.

We have a robust growth outlook for both of our businesses and we are confident about maintaining this growth momentum in upcoming quarters, added Hiremath.