Hikal Ltd., the preferred long-term outsourcing partner for leading global life sciences companies, achieved strong financial performance during the year ended March 2006 and its net profit has taken a jump of 21.4 per cent to Rs 41.4 crore from Rs 34.1 crore in the previous year. The earning per share moved up to Rs 26.58 from Rs 22.62. Its net sales increased by 23.5 per cent to Rs 231 crore from Rs 187 crore.
The board of directors recommended equity dividend of 65 per cent for the year 2005-06.
Its pharma initiatives continue to be a major focus area and have maintained an impressive growth of 68 per cent this year, while the Agrochemicals also registered an above industry average growth of 7 per cent.
Consolidated sales including Marsing grew to Rs. 456 crore compared to Rs. 333 crore last year. Commenting on the earnings, Jai Hiremath, vice chairman and MD, said, "We are extremely happy to announce 65 per cent dividend for our investors, a reflection of the steady and consistent growth that the company has been garnering over the last few quarters. In the last year, Hikal has made some strategic investments that would take the company on an aggressive growth path in the coming quarters. The restructuring efforts at our subsidiary Marsing continue, results of which would reflect in the years to come," he added.
Hikal has recently acquired a minority stake in a subsidiary of US $20Bn Sinochem Corporation and also signed a long term agreement with German chemicals giant, Degussa. In the year 2004-05, Hikal successfully raised US$ 25 million through FCCBs and Convertible Preference Shares.