Hikal Records 323.1% YoY Net Profit Growth for Q2 FY20-21

Hikal Limited., a chemicals manufacturer based in India announced its results for the second quarter ended September 30, 2020.

Q2 Results- QoQ

The company’s net profit grew 79.7% to Rs 26.95 crores for the period ended September 30, 2020 as against net profit of Rs 15 crores for the previous quarter.

Net sales increased 5.5% to Rs 372.87 crores during the period ended September 30, 2020 as compared to Rs 353.41 crores during the previous quarter.

Q2 Results- YoY

The company’s net profit grew 323.1% to Rs 26.95 crores for the period ended September 30, 2020 as against net profit of Rs 6.37 crores for the prior-year quarter.

Net sales increased 15.8% to Rs 372.87 crores during the period ended September 30, 2020 as compared to Rs 321.87 crores during the prior-year quarter.

Half-Year Results- YoY

The company’s net profit increased 32.8% to Rs 41.95 crores for the 6 months period ended September 30, 2020 as against net profit of Rs 31.6 crores for the prior-year 6 months period.

Net sales grew 0.1% to Rs 726.28 crores during the 6 months period ended September 30, 2020 as compared to Rs 725.71 crores during the prior-year 6 months period.

Segment Wise Q2 Results- YoY

Pharmaceutical sales up by 34% to Rs. 279.3 crore as compared to Rs. 208.2 crore in the corresponding period of the previous year.

Crop Protection sales lower by 18% at Rs. 92.6 crore as compared to Rs. 112.8 crore in the corresponding period of the previous year.

Commenting on the results, Jai Hiremath, Chairman & Managing Director, Hikal Ltd. said, “The overall performance for Q2 has been better than the corresponding period last year as well as well the previous quarter due to higher sales offtake which resulted in better capacity utilization in our pharma division.

Our Pharmaceutical division registered a strong growth of 34% for the quarter as compared to same quarter last year. This performance was led by strong volume off-take supported by new capacity at our Bangalore unit which was commissioned late last year.

One of our long-term global customers in Crop Protection faced several operational challenges due to the ongoing COVID-19 restrictions at their facility. This led them to defer their volume off-take in Q2. We expect them to take the full supply by Q3 of this financial year.”

“Based on the current operating environment, we expect that our performance in H2 will be much better as compared to in H1. We expect to close the current financial year with better financial performance as compared to the last financial year,” he added.