Hikal : Results Presentation FY23Q3

Results Presentation - Q3 FY23

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.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

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 recorded an improved performance in this quarter in line with earlier guidance of a sequential recovery. We had an improvement in EBITDA margins on the back of several cost improvement initiatives. We are witnessing softening of key raw material prices and we expect the trend to stabilize in the upcoming quarter.

The revenue for the Crop Protection business stood at Rs 248 Crores in Q3 FY22. We are focusing on the optimal product mix to improve revenues and margins going forward. We are in the process of commissioning our new multipurpose facility at Panoli for the launch of our new products.

Our Pharmaceuticals business has registered a YoY revenue growth of 9% and revenue stood at Rs 292 Crores for the quarter based on increased volumes of CDMO products. We have a strong pipeline of products in various stages of development. We are focusing on cost improvement initiatives to improve margins for existing API's and improve penetration of new products across different geographies. Our new Animal Health Multipurpose facility is on track and expected to commissioned in Q2 of FY24.

Jai Hiremath	The board has approved interim dividend of Rs. 0.60 per share which translates to 30% of Face Value.
	Hikal has partnered with a leading global ESG consultant to build the sustainability strategy for reduction of carbon
	footprint across the value chain of Hikal to better understand the needs of all our stakeholders, colleagues, partners and
	communities in which we operate.
	As part of our commitment to doing business in a responsible way, we are taking several initiatives to ensure clean energy,
	reduction of carbon footprint, reduction of waste generation across all our sites. We have further increased renewable
	power by signing long term agreements for our Panoli, Taloja and Mahad sites.
	Pinnacle, our business transformation initiative, is on track to create a robust roadmap across business verticals to drive a
	profitable and sustainable growth over the next five years through a focused strategic direction.
	We continue to monitor the macro-economic environment, rising interest rates, impact of China opening, rising energy costs
	and the ongoing geopolitical unrest. Both of our businesses have a strong growth outlook. We aspire to deliver sustainable
	and profitable volume-led growth over the medium term."
	© Hikal Limited

Quarterly Financials Highlights

Robust performance in both Pharmaceutical and Crop Protection businesses, with recovery in EBITDA margins

Revenue - Q3 FY23

Rs. 540 Crore

YoY	QoQ
+5%	-3%

EBITDA - Q3 FY23

Rs. 75 Crore

YoY QoQ

-20% +7%

EBITDA Margin - Q3 FY23

13.8%
YoY	QoQ
-425 bps	+133 bps

PAT - Q3 FY23

Rs. 26 Crore

YoY QoQ

-42% +6%

EPS - Q3 FY23

Rs. 2.14

YoY QoQ

-42% +6%

© Hikal Limited