Hikal Results Presentation FY22Q2

Results Presentation - Q2 & H1 FY22

Safe Harbor

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Hikal Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

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Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

© Hikal Limited

Executive Chairman's Message

	"Hikal has delivered another quarter of positive performance. From a segmental performance perspective, the Crop
	Protection business has performed well, registering a positive YoY growth of 105% in Q2 on the back of strong volume
	growth of our existing products and further scale up of volumes of our new products. We expect this positive
	momentum to continue in the next few quarters based on a healthy pipeline of products at various stages.
	Unusually heavy rainfalls in the Raigad region had a severe impact on our Mahad operations leading to the
	shutdown of our Mahad facility for several weeks. This led to a loss in sales and profitability for the crop division.
	Relentless efforts by our teams from all our sites helped in restarting our operations in a staggered manner and we
	were able to return to normal operations in due course.
	Our Pharmaceutical business remained flat due to a slower offtake by customers in this quarter. This was primarily
	due to several raw material shortages and global logistics issues. We expect raw material challenges to continue in
Jai Hiremath	the next few months and are working with both our suppliers and customers to mitigate the price fluctuations.
Our capex plans and our new product launch plans remain intact for both our divisions. We are seeing tailwinds in
	terms of new opportunities arising from global supply chain disruptions and the China plus one strategy playing out.
	Global supply chain challenges coupled with a steep increase in input raw material prices continue to pose a
	challenge for our industry going forward. We have put in significant efforts over the past few years on developing
	alternate sourcing partners and backward integration of certain raw materials. While this will help us in the long-
	term, we do expect certain disruptions in the short term. Over the next several months we expect the situation to
	normalise.
	As part of our efforts to fight the Pandemic, our employees across the company are 100% vaccinated for their first
	dose and about 75% have been vaccinated for their second dose. We expect to have all our employees fully
	vaccinated by the year end.

In alignment with our long-term vision and bold aspirations, we have set out on a transformational journey with a Global consultant to create a roadmap across our business verticals. This initiative will drive future growth and profitability, by giving us a new strategic direction and enabling us to chart our progress in a sustainable manner. The journey forward will not just entail accelerating growth in our existing pharma and crop protection businesses but

will also see strong growth in our emerging business verticals such as animal health and biocides.	© Hikal Limited

Quarterly Financial Highlights

Financial Highlights - Q2 FY22

Revenue - Q2 FY22	EBITDA - Q2 FY22	EBITDA Margin - Q2 FY22
Rs. 469 Crore		Rs. 91 Crore		19.4%
YoY	QoQ	YoY	QoQ	YoY	QoQ
26%	3%	30%	-5%	62 bps	-158 bps

PAT - Q2 FY22			EPS - Q2 FY22
		Rs 3.54
Rs. 44 Crore
YoY	QoQ		YoY	QoQ
	63%	-13%
63%	-13%

© Hikal Limited