Hikal Ltd., a preferred long-term partner for leading global life sciences companies, announced its Q2 FY25 revenue of Rs. 453 crore, an increase of 4.1% vis-a-vis Q2 FY24.  

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal Ltd. said, “The chemical market is gradually showing signs of improvement in 2024 with volumes showing a marginal growth over last year. In Q2 FY25, our revenue amounted to Rs. 453 crore, with an EBITDA of Rs. 75 crore, reflecting growth on both QoQ and YoY basis. For the H1 FY25, revenue stood at Rs. 860 crore, with an EBITDA of Rs. 133 crore, growth of 4% and 23% respectively. During H1 FY25, we have reduced our working capital and improved cash flow. The stable raw materials prices, focused cost improvement initiatives along with intensified customer acquisitions helped us to improve our margins both on a QoQ and YoY basis."

"In Q2 FY25, our pharmaceutical segment generated revenue of Rs. 294 crore and an EBIT margin of 13.7%, an increase of 28.1% and 994 bps, respectively on QoQ basis. In our CDMO business, we continue to receive enquiries from several innovator customers, and we have a robust pipeline of projects at various stages of development. In our API segment, we are experiencing a moderate surge in volume demand from existing and new clients," commented Hiremath. 

"In Q2 FY25, our crop protection segment reported revenue of Rs. 159 crore, with an EBIT margin of 5%. The Crop Protection sector is beginning to show some signs of stabilization. Domestic markets have shown a relatively better recovery trend in the recent quarters. The excess inventory situation is gradually easing, volumes are steadily recovering, however prices are still depressed in the global markets. We are cautiously optimistic that this gradual recovery will continue in the upcoming quarters," says Hiremath.

"In the Animal Health segment, as a part of long-term agreement with innovator, we have successfully completed the development and validation of six products, and we are on track to finalize the validation of additional products by the end of this year. This is an important milestone in our efforts to secure product registration and eventually launch them in global markets. We continue our efforts to target newer customers in this niche segment," said Hiremath.

"Under our strategic transformation initiative - Pinnacle, we have made significant progress in maintaining growth across our businesses. We have strengthened our efforts in our ESG initiatives, expanded our geographical reach, upgraded our technology infrastructure and acquired new customers. As we move into the next phase of our strategic plan, we are concentrating more on the front-end to seize opportunities that will contribute to building a robust pipeline across our diverse businesses. We remain focused to deliver profitable and sustainable growth across all business segments. We expect the second half to be better than the first half with realization from cost-improvement programs and higher revenues,” added Hiremath.