Hikal Ltd, the preferred long-term outsourcing partner for leading global life sciences companies, has suffered minor setback due to exchange losses during the third quarter ended December 2009 and its net profit declined by 10.1 per cent to Rs 14.35 crore from Rs 15.96 crore in the corresponding period of last year. The company provided Rs 11 crore towards exchange losses. Its net sales also moved down to Rs 119.88 crore from Rs 130.95 crore.

Its EBIDTA for quarter increased to Rs 42.1 crore as compared to Rs 38.5 crore, a growth of 6 per cent and its profit before tax and extraordinary expenses stood at 24.6 crore as against Rs 26.4 crore in the corresponding period of the previous year.

Hikal's pharma sales up by 22 per cent to Rs.80.0 crore as compared to Rs.65.7 crore in the corresponding quarter of the previous year. However, its agro sales declined by 39 per cent due to inventory cutbacks.

During the first nine months ended December 2009, Its crop protection business recorded net sales of Rs120.9 crore as compared to Rs 138.8 crore in the previous year and the Pharmaceutical business increased to Rs 251.3 crore as compared to Rs 191.5 crore in the previous year; taking the total turnover of the company to Rs.372.2 crore as compared to Rs. 330.3 crore in the previous year. The net profit for nine months declined to Rs.40.2 crore as compared to Rs.43.8 crore in the previous year.
 
Commenting on the results, Jai Hiremath, vice chairman & managing director, said, “Our pharmaceutical business has grown substantially in the last quarter. The de-stocking of inventory by our customers and the slow recovery in the US & Europe has been challenge this quarter. We expect a marked improvement in the next quarter.”
 
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 crop protection facilities are located at Taloja and Mahad (Maharashtra). Hikal’s manufacturing activities are supported by state-of-the-art research centres and pilot plant facilities located at Bangalore and Taloja respectively. The API and pharmaceutical intermediates manufacturing facilities are situated in Jigani (Bangalore) and Panoli (Gujarat), respectively. Hikal has also commissioned Acoris Research Ltd., a state-of-the-art contract research facility at the International Biotech Park, Pune.