Hikal Limited, a leading pharmaceutical and crop protection company, has reported a significant downturn in its financial performance for the first quarter. The company's unaudited consolidated financial results, approved by the Board of Directors on August 7, reveal a challenging start to the year.

Financial Highlights

• Net Loss: Hikal reported a net loss of ₹224.00 million in Q1, a stark contrast to the profit of ₹51.00 million in the same quarter last year.
• Revenue: The company's revenue declined to ₹3,804.00 million from ₹4,068.00 million year-over-year, representing a 6.5% decrease.
• EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) dropped significantly to ₹251.00 million from ₹580.00 million in the corresponding period last year.
• EBITDA Margin: The EBITDA margin compressed to 6.60% from 14.26% year-over-year.

Segment Performance

Hikal's business is divided into two main segments:

1. Pharmaceuticals: This segment generated revenue of ₹2,026.00 million.
2. Crop Protection: The crop protection segment contributed ₹1,778.00 million to the total revenue.

Key Financial Metrics

Challenges and Outlook

The significant decline in financial performance suggests that Hikal faced substantial challenges during the quarter. The sharp drop in EBITDA and the swing from profit to loss indicate pressures on both the top line and bottom line.

The company's immediate focus will likely be on reversing the negative trends observed in Q1. Investors and stakeholders will be keenly watching Hikal's performance in the coming quarters to see if this downturn is a temporary setback or indicative of more persistent challenges in its operating environment.

Hikal's ability to navigate these headwinds and return to profitability will be crucial for restoring investor confidence. The company's strategies to address the revenue decline and improve operational efficiency will be of particular interest in the near term.

As per the regulatory filing, Hikal's Board meeting concluded at 01:55 p.m. on August 7, after approving these unaudited financial results. The company continues to comply with its obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Hikal Limited has announced a significant milestone for its Jigani Unit in Bangalore, marking a step forward in its pharmaceutical manufacturing capabilities.

PMDA Certification

The company's plant, located at 82/A, KIADB Industrial Area, Jigani, Anekal Taluk, Bangalore, Karnataka, has received Good Manufacturing Practices (GMP) certification from Japan's Pharmaceutical and Medical Device Agency (PMDA). This certification confirms that the facility complies with Japan's stringent GMP guidelines for Active Pharmaceutical Ingredients (APIs).

Inspection Process

The PMDA conducted a thorough inspection of Hikal's Bangalore (Unit-1) site over a four-day period, from May 19th to 22nd. Following this rigorous evaluation, the agency granted the GMP certification, validating the company's manufacturing practices and quality control systems.

Implications for Hikal

This certification is a significant achievement for Hikal Limited, potentially opening doors to the Japanese pharmaceutical market, which is known for its high standards and quality requirements. The GMP certification from PMDA could enhance Hikal's credibility in the global pharmaceutical industry and may lead to new business opportunities in Japan and other international markets.

Company's Statement

Hikal Limited officially informed the stock exchanges about this development on July 30th, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company views this certification as a testament to its commitment to maintaining high-quality standards in its manufacturing processes.

About Hikal Limited

Hikal Limited is a specialty chemicals and pharmaceutical company headquartered in Mumbai, India. The company operates in various segments of the chemical and pharmaceutical industry, with a focus on contract manufacturing and research services.

This latest certification adds to Hikal's credentials and could potentially strengthen its position in the pharmaceutical API manufacturing sector, particularly in relation to the Japanese market.