FY23 Annual Result Announced for Hikal Ltd.
Pharmaceuticals company Hikal announced FY23 results: Revenue of Rs 545 crore; YoY growth of 9% EBITDA stood at Rs 90 crore PAT stood at Rs 36 crore Recommended a final dividend of Rs 0.6 per share (30% of FV); Total dividend for FY23 stands at Rs 1.2 per share (60% of FV) Hikal’s long-term credit rating is maintained at A+ by ICRA Commenting on the results, Jai Hiremath, Executive Chairman, Hikal said, “For the financial year ’23, we achieved revenue of Rs 2,023 crore, which is a growth of 4% as compared to last financial year. FY23 has been a challenging year where we witnessed significant headwinds in both of our businesses. Despite the challenges, we have recorded a sequential quarter-on-quarter growth in profitability. Our Board of Directors has recommended a final dividend of Rs 0.6 per share (30% of FV). Along with an interim dividend of Rs 0.6 per share (30% of FV) declared in February 2023, the total dividend for FY23 stands at Rs 1.2 per share (60% of FV). We are pleased to report that during Q4FY23, despite limited top-line growth, we were able to sequentially expand operating margins with efforts put forth by our team to reduce costs and strengthen operational effectiveness. The Crop Protection business revenue stood at Rs 236 crore in Q4 FY23 with a YoY growth of 22%. We have seen softening of key RM prices and prices are stabilizing. Our multipurpose plant at Panoli is reaching completion and commissioning is underway. The crop protection industry is currently witnessing an inventory correction across the supply chain. We expect the situation to normalize from the second half of this year. For Q4FY23, our pharmaceutical business reported revenues of Rs 309 crore. The pharmaceutical industry is facing fierce competition, but price erosion is currently occurring at a slower pace than in the year 2022 suggesting that the worst of the erosion is behind us supported by improved raw material and logistics costs. On the CDMO side, there is a lot of inventory, and destocking is taking place. We expect the situation to normalize by the end of Q2. We have a strong future pipeline in our CDMO business and are actively pursuing new opportunities. We have increased our footprint in emerging markets and added several new customers. I am pleased to inform you our API facility in Panoli, Gujarat, was audited by the US FDA from 8-12 May 2023, and the audit was concluded with ‘Zero’ 483 observations which highlight our high standards of regulatory compliance. Our new multipurpose facility for animal health is on track and should be operational during H1 FY24. Development of new products as a part of a long-term contract with an innovative animal health company is going as per our plan. One of the key factors that sets us apart is our commitment to sustainability, which is the core of our ESG Strategy. We understand the growing global concern for the environment, and we are working to make a positive impact through our operations. Our investments in technology, waste reduction initiatives, and sustainable manufacturing processes will help position us as a preferred partner for our global customers. Project Pinnacle initiatives have already begun to yield positive results and will help us emerge stronger and more sustainable. We foresee a slowdown in the coming couple of quarters due to the global economic downturn and increasing pricing pressure. However, we are focusing on operational excellence and capital efficiency to reduce costs and improve our margins to remain competitive in this challenging global environment. We are well positioned for sustainable growth in the medium to long term, driven by our focus on innovation, commitment to sustainability, global presence, and a strong financial foundation.” Result PDF29-05-2023