Hikal Ltd., a preferred long-term partner for leading global life sciences companies, announced its unaudited financial results for the quarter ended 30th June 2024. The company reported PAT of Rs. 5 crore as compared to Rs. 7 crore in Q1 FY24 and Rs. 34 crore in Q4 FY24.

During Q1 FY25, Hikal reported revenue of Rs. 407 crore as compared to Rs. 388 crore in Q1 FY24 and Rs. 514 crore in Q4 FY24. EBITDA stood at Rs. 58 crore in Q1 FY25 as compared to Rs. 50 crore in Q1 FY24 and Rs. 95 crore in Q4 FY24.

Commenting on the results, Jai Hiremath, Executive Chairman, Hikal Ltd. said,: “The global chemical industry is experiencing a recovery in demand, with a steady improvement in consumption, production and capacity utilization. We expect prices to stabilize in the coming quarters. In Q1FY25, our revenues reached Rs. 407 crore, with an EBITDA of Rs. 58 crore representing a 5% and 16% growth respectively. This financial improvement was driven by stable raw material prices, as well as our efforts in reducing costs, optimizing processes and diversifying our product range.

“In Q1 FY25, our pharmaceutical business generated revenue of Rs. 229 crore, with an EBIT of 3.8%. While we saw an increase in volume demand from existing customers in the API segment, a combination of product mix and scheduled plant maintenance shutdowns leading to lower capacity utilization affected our margins. In the CDMO segment, we continue to receive multiple requests for proposals from emerging pharmaceutical companies and global innovators. Several projects are progressing through to advanced development stages. We have a healthy pipeline of projects in various stages of development.

“In Q1FY25, our crop protection business generated revenue of Rs. 177 crore, with an EBIT of 11.9%. While the crop protection market is still challenging, we had a favorable product which led to an increase in margins year on year. With the global crop protection industry facing challenges such as overcapacity and price pressure from competitors, particularly from China, we expect the market to stabilize by the end of this calendar year with volumes recovery.

“Our animal health business has made significant progress. We have completed the development and validation of five products and are currently on track to finish validating several others by the end of this year. This marks a crucial milestone towards obtaining product registration and eventually launching them commercially in global markets.

“Under our strategic transformation initiative, Pinnacle, we have achieved significant strides in sustaining growth across our different business segments. We have focused on reducing risks in our supply chain, developing unique capabilities, acquiring new customers, and building a distinctive technology platform. As we move forward with our strategic plan, we will prioritize front-end opportunities to build and commercialize a robust pipeline across business segments.

“Despite ongoing global challenges, we are confident that market conditions will improve in this financial year. Our primary objective is to achieve profitable and sustainable growth in all our business segments. We are committed to adapting our strategies to meet changing market conditions and to capitalize on the growing list of emerging opportunities.”