Hold Hikal; target of Rs 290: ICICI Direct
ICICI Direct recommended hold rating on Hikal with a target price of Rs 290 in its research report dated August 16, 2022.17-08-2022
17-08-2022
HIKAL LTD. - 524735 - Intimation Under Regulation 30 Of SEBI (LODR) - Earnings Call Audio Recording Q1 FY23
Intimation Under Regulation 30 Of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 - Earnings Call Audio Recording Q1 FY2311-08-2022
Q1FY23 Quarterly Result Announced for Hikal Ltd.
Pharmaceuticals firm Hikal announced Q1FY23 Result : Revenue of Rs. 379 crore; YoY de-growth of 17% EBITDA of Rs. 23 crore; YoY de-growth of 76% PAT stood at Rs. (9) crores Hikal’s long term credit rating is maintained at A+ by ICRA Channel inventory correction by the Pharma customers Disruption in operations for the Crop Protection business Increased input raw materials, solvent and energy costs Increased depreciation on account of assets additions Marginal increase in finance costs in view of interest rate hikes Pharmaceutical sales de-grew 18% YoY and stood at Rs. 224 crore as compared to Rs. 274 crore in Q1 FY22 This de-growth is predominantly due to channel inventory correction at customers’ end Business excellence initiatives have resulted in reduction of costs to absorb some of the impacts of higher input prices Key wins for CDMO business for potential future growth Orders received for intermediates for a COVID drug from a Global innovator company Increased penetration in Latin America and Middle east market for the API Generics business Crop Protection sales de-grew by 15% at Rs. 154 crore as compared to Rs. 183 crore in Q1 FY22 This de-growth is predominantly due to disruption in operations at Taloja Higher forecast from existing global innovator companies Demand continues to remain strong Significant increase in inquiries from existing as well as new customers Construction of new multipurpose plant is on-track at Panoli. Expected to commission in the second half of FY23. Commenting on the results, Jai Hiremath, Executive Chairman, Hikal Ltd. said, “We had a challenging quarter where we witnessed significant headwinds in both our businesses. Our Pharmaceutical business witnessed a de-growth of 18% and revenue stood at Rs. 224 Crores in Q1 FY23, predominantly due to channel inventory correction at customers’ end. Additionally, this quarter we experienced margin pressure on account of higher input costs which have started easing out and a positive impact on margins is expected to be visible in the coming quarters. We expect the demand for our own products business to improve in the coming quarters. We continued to receive several new inquiries from global innovator companies for the partnerships in the CDMO business segment and successfully secured few projects from global innovators, which have a potential to turn into in significant incremental revenues in the coming years. We have a healthy pipeline of new products and are confident of capitalizing on our product mix going forward. In the Crop Protection business, revenue stood at Rs 154 Crores in Q1 FY23. Due to disruption in operations of our Taloja plant we lost production capacity for a significant part of the quarter. However, we utilized the time effectively by undertaking our annual preventive maintenance. Our plant is now fully operational, and our operations team is committed to make up the production loss to the best extent, over the next three quarters. We are on track for building our new multipurpose plant for launching new products, which is expected to come on stream by the end of this financial year. On the CDMO front, we continue to receive numerous new inquiries from both existing and new customers. We are working on several new products for global innovator companies. With the demand remaining robust in the market, we are very positive towards our growth story in the Crop Protection business. With the ongoing Russia Ukraine war, supply chain continues to be a concern for the overall industry. We continued to see a rise in the input costs of raw materials, solvents, utilities and fuel which has affected our margins. Our focus is to passthrough these increases in the input costs to our customers and optimize the fuel mix. We expect the prices of some of our key raw materials to soften in the upcoming months, which will improve our overall margins and profitability. We continue our efforts on cost improvement projects as well as to improve operational efficiency within our business excellence program to partly absorb the higher input costs. We will continue developing alternate domestic suppliers to mitigate the supply chain disruptions prevailing in present market on account of global geopolitical situation. Considering the uncertainties prevalent in macro environment, most global companies are looking for supply chain diversification (China-plus-one strategy). We are witnessing numerous inquiries from on potential collaborations, and we are well positioned to capture the influx of opportunities. In addition, we are also seeing significant traction in our emerging Animal Health business with enhanced inquiries. As part of our 10-year multi-product project with a global innovator, process development of several active ingredients is on-track, and a dedicated asset for Animal health business is under way which is expected to be commissioned by end of FY23. Our transformation journey, “Pinnacle Program” is witnessing good momentum across both businesses. We have taken various initiatives across the company to make Hikal to go from ‘Good to Great’. This will help reach our bold aspiration of driving profitable as well as sustainable growth. We are optimistic about our growth story. We expect a step wise recovery in the upcoming three quarters with tailwinds supporting us and are confident of coming back to our profitable growth trajectory by end of FY23.” Result PDF11-08-2022
HIKAL LTD. - 524735 - Announcement under Regulation 30 (LODR)-Investor Presentation
Investor Presentation of the Company on the unaudited standalone and consolidated financial results of the Company for the quarter ended June 30, 202210-08-2022
HIKAL LTD. - 524735 - Announcement under Regulation 30 (LODR)-Press Release / Media Release
Earnings Press Release - on the Results of the Company for the quarter ended June, 202210-08-2022
HIKAL LTD. - 524735 - Unaudited Standalone And Consolidated Financial Results For The Quarter Ended June 30, 2022
Unaudited Standalone And Consolidated Financial Results for the quarter ended June 30, 202210-08-2022
HIKAL LTD. - 524735 - Board Meeting Outcome for Outcome Of Board Meeting Pursuant To Regulation 30 Of The Securities And Exchange Board Of India (Listing Obligations And Disclosure Requirements) Regulations, 2015
The Board of Directors of the Company at its meeting held today i.e., August 10, 2022 approved the Standalone and Consolidated Unaudited Financial Results of the Company for the quarter ended June 30, 2022.10-08-2022
HIKAL LTD. - 524735 - Announcement under Regulation 30 (LODR)-Analyst / Investor Meet - Intimation
Intimation of conference call to discuss the financial and operational performance for the quarter ended June 30, 202209-08-2022
HIKAL LTD. - 524735 - Board Meeting Intimation for Unaudited Standalone And Consolidated Financial Results For The Quarter Ended June 30, 2022
HIKAL LTD.has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 10/08/2022 ,inter alia, to consider and approve the unaudited standalone and consolidated Financial Results of the Company for the quarter ended June 30, 202203-08-2022
HIKAL LTD. - 524735 - Announcement Under Regulation 30 Of SEBI (LODR) Regulations, 2015
Intimation under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for reappointment of Mrs. Shivani Bhasin Sachdeva as Independent Director of the Company for the second term of five years commencing from August 1, 2022.20-07-2022