Hikal, a Rs.700 crore diversified company engaged in pharmaceutical and crop protection segment, has suffered heavy setback during the third quarter ended December 2012 and its sales as well net profit declined sharply. The net profit declined by 30.8 per cent to Rs.9.03 crore from Rs.13.04 crore and its , net sales by 17.6 per cent to Rs.152.92 crore from Rs.185.48 crore in the similar quarter of last year. Its EPS nosedived to Rs.5.49 from Rs.7.93 in the last period.

The pharmaceutical sales declined by 31.7 per cent to Rs.89.06 crore from Rs.130.44 crore in the same quarter of last year and that of Crop protection products improved by 16 per cent to Rs.63.86 crore from Rs.55.04 crore. Foreign exchange loss for the quarter amounted to Rs.5.50 crore as compared to Rs.11.11 crore in the last period.

Commenting on the results, Jai Hiremath, chairman & managing director, said, “Our Agrochemical division continues to grow on back of increased off-take by our customers. Our Pharmaceutical division has been affected by de-stocking of inventory by our customers. most of which has been pushed into the fourth quarter of this financial year. Even though our EBITDA margins have increased quarter on quarter of this financial year, the net profit is lower due to foreign exchange losses. The forecast from our customers. for the rest of the financial year remains positive. Our operational margins are healthy and we expect to continue the growth well into next financial year.”

The company's net sales for the first nine months ended December 2012 remained almost flat at Rs.471 crore, but its net profit declined sharply by 58.3 per cent to Rs.16.24 crore from Rs.38.98 crore the corresponding period of last year. Its pharmaceutical sales went down by 15.3 per cent to Rs.264.62 crore from Rs.312.40 crore and that of Crop protection products 28.5 per cent to Rs.206.15 crore from Rs.160.48 crore. Pharmaceutical sales worked out to 56 per cent of net sales and Crop protection products contributed 44 per cent. The forex loss amounted to Rs.37.63 crore as against Rs.11.56 crore in the last period.

The company has been supplying key active ingredients (AI), API’s and intermediates, manufactured using stringent global quality standards, for its customers. in the United States, Europe and Japan. Hikal’s advanced manufacturing facilities have been inspected and approved by leading global players. in Crop protection and Pharmaceutical sectors. The API and pharmaceutical intermediates manufacturing facilities are situated in Jigani (Bengaluru) and Panoli (Gujarat), respectively. Hikal also has a state-of-the-art research facility, Acoris Research located at the International Biotech Park, Pune.