Hikal Ltd., the preferred long term outstanding partner for leading global life sciences companies, posted net sales of Rs. 59.8 crore for the quarter ended September 30, 2006.

EBIDTA (Earning Before Interest, Depreciation, Tax, and Amortisation) for the quarter stood at Rs. 15.9 crore while net profit of the company stood at Rs 7.9 crore, after adjusting Rs 0.7 crore on exceptional items. While the net sales increased by 15 per cent, net profit improved by 22 per cent over the quarter ended June 30, 2006.

Jai Hiremath, vice chairman and managing director, Hikal said, "We have made rapid strides in the pharma segment and the quarter has seen significant growth in volume terms. Our Banglore facilities have also started dispatching new product to our global customers. Coupled with cost cutting initiatives, the benefits of these activities will accrue in the ensuing quarters."

Hikal has recently upgraded its existing laboratories at the R&D centre in Banglore and added two new labs to the existing four labs, to meet increasing customer needs in the contract research arena. Hikal has also commissioned a new pilot plant at Taloja to manufacture agrochemical products for global innovator companies, which includes products under patent.

A new launch plant has been set up at Banglore that will manufacture, APIs for global pharmaceutical companies. The multi-product API plant is expected to start full-scale production by end 2006. Hikal has also set up a new cGMP kilo lab at Jigani. These facilities, set up at a cost of Rs 50 crore, will help Hikal significantly enhance its capabilities to become the preferred outsourcing partner for the global life sciences companies.

Marsing's restructuring operation is going as per schedule and is expected to break even by 2007-2008.