Hikal ltd, a well diversified company engaged in pharmaceutical and crop protection products, has posted handsome growth in top line and bottom line during the third quarter ended December 2011. Its net profit has taken a quantum jump of 152 per cent to Rs.13.04 crore from Rs.5.17 crore in the corresponding period of last year. Its EBDITA also gone up by 74.3 per cent to Rs.46.24 crore from Rs.26.54 crore. With improvement in profits, its EPS touched to Rs.7.93 as against Rs.3.14 in the last period.

The company's net sales increased by 84 per cent to Rs.185.48 crore from Rs.100.79 crore in the similar quarter of last year. Pharmaceutical division contributed 70 per cent to net sales and crop protection segment 30 per cent. The sales of pharmaceutical segment increased sharply by 92 per cent to Rs.130.44 crore from Rs.67.99 crore and that of crop protection segment increased by 68 per cent to Rs.55.04 crore from Rs.32.80 crore.

For the nine months ended December 2011, Hikal's sales increased by 38.3 per cent to Rs.472.88 crore from Rs.341.98 crore, with pharmaceutical sales contributing 66 per cent at Rs.312.34 crore and crop protection segment 34 per cent at Rs.160.48 crore. Its net profit increased by 28.9 per cent to Rs.38.98 crore from Rs.30.24 crore.

The company's auditor pointed out that the company has not provided for a “mark-to-market” loss on derivative contracts/receivables aggregating to Rs.75.34 crore as at the end of December 2011 and for the exchange difference on working capital loans aggregating to Rs.13.54 crore. Consequently, without considering the tax effect, the profit before tax for the quarter and reserves and surplus are overstated by Rs.88.88 crore as compared to Rs.34.09 crore in the corresponding period of last year. The company mentioned that the actual profit/loss against such outstanding contracts will be recognised as and when they fall due.