Hikal jumps 18 per cent on zero observation at Gujarat facility

Today, Hikal Limited today informed the bourses that its pharmaceutical manufacturing facility, located at Panoli, Gujarat, was recently inspected by the USFDA and concluded with zero observations.

This inspection was carried out for five days from September 9 to 13, 2019. The inspection has confirmed that the site is in compliance with all the guidelines of Current Good Manufacturing Practices (CGMP).

Cheered by the news, the stock of Hikal Limited jumped nearly 18 per cent and made an intraday high of Rs. 119.80 on BSE.

Looking at the recently concluded quarter Q2FY20, Hikal’s consolidated revenue came in at Rs. 321.05 crore against Rs. 394.84 crores in the corresponding quarter last year, registering 18.7 per cent YoY decline. The EBITDA for the quarter fell by 22.4 per cent YoY to Rs. 58.36 crores as against Rs. 75.2 crores in the corresponding quarter last year, with a corresponding margin contraction of 87 bps. The EBITDA margin for the quarter stood at 18.2 per cent. PAT for the quarter came in at Rs. 6.37 crores against Rs. 24.43 crores in the corresponding quarter last year. This includes exceptional loss of Rs. 15.40 crores.

Q2FY20 revenue mix comprises of pharma (65 per cent) and crop protection (35 per cent).

The company has guided capex of nearly Rs. 350 crores, which would be spent in the coming 18-24 months. Out of this capex, the company aims at spending nearly 20-25 per cent on backward integration, which would ensure continuous raw materials supply and also aid in margin improvement.