Results Presentation - Q2 FY23

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Executive Chairman's Message

Jai Hiremath

"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."

© Hikal Limited

Quarterly Financials Highlights

Gradual Recovery in Q2 - expect to see continuous improvement in revenues and margins

Revenue - Q2 FY23

EBITDA - Q2 FY23

EBITDA Margin - Q2 FY23

Rs. 559 Crore

Rs. 70 Crore

12.5%

YoY

QoQ

YoY

QoQ

YoY

QoQ

19%

48%

-23%

207%

-690 bps

650 bps

PAT - Q2 FY23

EPS - Q2 FY23

Rs 2.01

Rs. 25 Crore

YoY

QoQ

YoY

QoQ

-44%

379%

-44%

379%

© Hikal Limited

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Hikal Limited published this content on 09 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 November 2022 12:10:10 UTC.