Pharmabiz
 

Hikal net dwindles by 64% in Q3

Our Bureau, MumbaiThursday, February 10, 2011, 15:30 Hrs  [IST]

Hikal, a Rs.530 crore plus Mumbai based company, has suffered heavy setback during the third quarter and nine months ended December 2010 on account of inventory cut backs by its major customers and the appreciation of rupee against US dollar. Its net profit plunged by 64 per cent to Rs.5.17 crore from Rs.14.35 crore in the corresponding period of last year. Its net sales also declined by 15.9 per cent to Rs.100.79 crore from Rs.119.88 crore. With sharp fall in profits, its earnings per share moved down to Rs.3.14 as against Rs.8.73 in the last period.
The company has entered into forward/options contracts to hedge its exposure to fluctuations in foreign exchange for approx 30 per cent of future exports. Thee covers have been staggered over the next three years as the major percentage of the company's turnover is realized from exports. The company is of the opinion that the result of these transactions represent unrealised losses that are notional in nature. The mark to market valuation loss is Rs.34.09 crore as on December 31, 2010 as compared to Rs.64.88 crore in the last period. Its loss on realised forward contracts amounted to Rs.2.56 crore as compared to Rs.5.87 crore in same quarter of last year.
Its pharmaceutical sales declined by 15.1 per cent to Rs.67.99 crore during the quarter under review from Rs.80.04 crore and that of crop protection products declined by 17.7 per cent to Rs.32.80 crore from Rs.39.84 crore.
For the nine months ended December 2010, Hikal's net sales declined by 8.1 per cent to Rs.341.98 crore from Rs.372.20 crore in the similar period of last year. Its net profit declined by 24.7 per cent to Rs.30.24 crore from Rs.40.18 crore. Its pharmaceutical sales declined by 10.9 per cent to Rs.223.81 crore from Rs.251.26 crore and its sales of chemicals declined by 2.3 per cent to Rs.118.17 crore from Rs.120.94 crore.

 
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