Hikal Ltd., a preferred long-term partner for leading global life sciences companies, announced its financial results for the quarter and half-year ended 30^th September 2022. During the quarter, Hikal’s revenue witnessed growth of 19% to Rs. 559 crore; EBITDA of Rs. 70 crore and PAT stood at Rs. 25 crores.

Crop Protection business has demonstrated strong rebound on account of industry tailwinds during the quarter. Sequential recovery in revenue and margin for Pharma business in upcoming quarters on back of improved demand outlook.

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 highest ever 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.”