Hikal Ltd, a Rs.700 crore company engaged in manufacturing of pharmaceutical and crop protection products, has suffered heavy setback during the second quarter ended September 2012 on account of foreign exchange loss of Rs.16.76 crore. The company's net profit declined sharply by 81.5 per cent to Rs.2.12 crore from Rs.12.95 crore in the corresponding period of last year. However, its EBDITA increased by 14.4 per cent to Rs.43.52 crore from Rs.38.06 crore. After announcement of financial performance, Hikal scrip declined by 4.7 per cent or Rs.22.10 on the BSE and close at Rs.444.05.

The net sales increased by 5.5 per cent to Rs.152 crore from Rs.144.60 crore in the same quarter of last year. Its pharmaceutical sales declined by 8.5 per cent to Rs.80 crore and that of crop protection products improved by 26.7 per cent to Rs.73 crore from Rs.58 crore.

Jai Hiremath, chairman and managing director, said, “ The revenues from our crop protection business grew by 27 per cent as the demand for our existing products was robust. The growth in our pharmaceutical business was affected by excess inventory levels maintained by our customers. We expect this situation to ease in the quarters to come. Our EBITDA was healthy and grew by 13 per cent this quarter. However, our net profit decreased due to the loss on foreign exchange contracts which are due to expire by the end of the year. Overall the forecast from our customers is positive.”

For the first half ended September 2012, its net sales increased by 8.3 per cent to Rs.320.17 crore from Rs.295.55 crore. However, its net profit declined by 72.2 per cent to Rs.7.22 crore from Rs.25.94 crore.

Its pharmaceutical sales improved by 3.5 per cent to Rs.175.58 crore from Rs.181.96 crore. However, the sales of crop protection products moved up by 34.9 per cent to Rs.142.28 crore.