Hikal Ltd. — Earnings Release 2023

Nov 9, 2022

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November 09, 2022

BSE Limited, National Stock Exchange of India Ltd., P. J. Towers, Exchange Plaza, Dalal Street, Bandra Kurla Complex, Bandra (East), Mumbai – 400 001. Mumbai 400051. BSE Scrip Code : 524735 NSE Symbol : HIKAL

Dear Sir/ Madam,

Subject: Earnings Press Release on the Results of the Company for the quarter and half year ended September 30, 2022

With reference to the subject, we are enclosing a copy of the Press Release on the Unaudited Standalone and Consolidated Financial Results of the Company for the quarter and half year ended September 30, 2022.

This is for your information and records.

Thank you,

Yours sincerely,

for HIKAL LIMITED,

RAJASEKHA Digitally signed by RAJASEKHAR R REDDY REDDY CHINTAKIN CHINTAKINDI Date: 2022.11.09 DI 16:20:22 +05'30'

Rajasekhar Reddy Company Secretary

Encl: As above.

Hikal Ltd.

Admin. Office: Great Eastern Chambers, 6th Floor, Sector 11. CBD Belapur, Navi Mumbai - 400 614. India. Tel. + 91-22-3097 3100. Fax: + 91 ·22·2757 4277 Regd. Office: 717, Maker Chambers -5, Nariman Point, Mumbai - 400 021, India. Tel. + 91 ·22-3926 7100, +91-22 6277 0477. Fax: + 91-22-2283 3913 www.hikal.com info@hikal.com CIN: L24200MH1988PTC048028

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Hikal Limited: Steady recovery in Q2 FY23

➢ Q2 FY23 Highlights

• ✓ Revenue of Rs. 559 crore; Y-o-Y growth of 19%

• ✓ EBITDA of Rs. 70 crore

• ✓ PAT stood at Rs. 25 crores

• ✓ Hikal’s long term credit rating is maintained at A+ by ICRA

Mumbai, November 09, 2022: Hikal Ltd., a preferred long-term partner for leading global life sciences companies, announced its financial results for the quarter and half-year ended 30[th] September 2022

Q2 FY23 Performance:

(Rs. in crore)

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Sales
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EBITDA

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PAT
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559 91
469
70
Q2FY22 Q2FY23 Q2FY22 Q2FY23
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44
25
Q2FY22 Q2FY23
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Key Highlights

• ➢ Crop Protection business has demonstrated strong rebound on account of industry tailwinds

• ➢ Sequential recovery in revenue and margin for Pharma business in upcoming quarters on back of improved demand outlook

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Consolidated Quarter Performance:

(Rs. in crore)

Sales

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EBITDA
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PAT
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44 45
559 91 94
515 502
469
25
379 61 70 21
23
-9
Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2
FY22 FY22 FY22 FY23 FY23 FY22 FY22 FY22 FY23 FY23 FY22 FY22 FY22 FY23 FY23
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Segmental Performance for the quarter ended 30[th] September 2022

(Rs. in crore)

Pharmaceuticals Division Crop Protection Division

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308 269
280 268 290 246
224 190 194
154
Q2 Q3 Q4 Q1 Q2 Q2 Q3 Q4 Q1 Q2
FY22 FY22 FY22 FY23 FY23 FY22 FY22 FY22 FY23 FY23
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• ➢ Pharmaceutical sales grew 4% YoY and stood at Rs. 290 crore as compared to Rs. 280 crore in Q2 FY22

• Business excellence initiatives and optimization of product mix are helping absorb some of the impact of increased input costs

• Commercialized two new advanced intermediates for a global innovator company

• Construction of new multipurpose plant for animal health is on-track at Panoli, Gujarat. We expect to commission it in the first half next calendar year.

• ➢ Crop Protection sales grew by 42% at Rs. 269 crore as compared to Rs. 190 crore in Q2 FY22

• All plants operational at full capacity utilization

• Higher demand forecast from existing global innovator companies

• Construction of new multipurpose plant is on-track at Panoli. Expected to commission in Q4 FY23

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Commenting on the results, Jai Hiremath, Executive Chairman, Hikal Ltd. said,

“Hikal has recorded a steady performance in Q2 in line with earlier guidance of a sequential recovery as we continue to move towards resuming our strong growth trajectory. In Q2, we achieved the highestever quarterly revenue in the history of Hikal, backed by strong demand in our Crop Protection business. We continue to keep an eye on the macro-economic environment, any potential for supply chain disruption, rising energy costs and the ongoing geopolitical unrest.

The Crop Protection business, with Rs 269 Crores revenues in Q2 FY23, witnessed a strong growth of 42% on a YoY basis on the back of robust demand from customers in both own products and CDMO segments. We expect this momentum to continue in the next few quarters. We have received several new enquires from global innovator companies which are at various stages of execution. The commissioning of the new Crop Protection multipurpose facility at Panoli, Gujarat will be in Q4 FY23.

The Pharma division business revenue stood at INR 290 Cr registering a 4% growth on a YoY basis. Soft demand, as well as pricing pressures in the end market, continue to be a concern. We have commercialized two NCE advanced intermediate with large potential for global innovator companies. Cost improvement programs, softening of raw material prices and optimal product mix will improve margins going forward. Our new Animal Health multipurpose facility is expected to come on stream by the first half of next calendar year.

Our efforts to develop alternate suppliers to reduce dependence on a single geography or vendor is on track and will help us in being a partner of choice to our global customers. To mitigate the increase in energy costs, we are further implementing renewable energy projects which will help reduce costs and lower our carbon footprint significantly.

We are continuing our strategic transformation journey, ‘Pinnacle Program’. Ongoing initiatives will help to reach our bold aspiration of driving profitable as well as sustainable growth. Significant progress is being made in building capabilities in terms of resources as well as infrastructure.

We expect to see a positive momentum in both businesses in the medium to long term.”

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About Hikal Limited

Hikal is a reliable long-term partner to companies in the Pharmaceuticals, Crop Protection, and Specialty Chemicals industry. The company is in the business of supplying research services, active ingredients and intermediates, manufactured using stringent global quality standards, for its global customers. Hikal’s advanced manufacturing facilities have been inspected and approved by leading multinational companies in the Crop protection and Pharmaceutical sectors. The Crop protection facilities are located at Taloja, Mahad (Maharashtra) and Panoli (Gujarat). Hikal’s R&T facilities are located at Pune. The Pharmaceutical manufacturing facilities are situated in Jigani (Bengaluru) and Panoli (Gujarat). Hikal is the first Indian life-sciences company to receive the Responsible Care® certification governed by the International Council of Chemical Associations (ICCA).

Safe Harbor Statement

Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential project characteristics, project potential and target dates for project related issues are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. The company assumes no obligation to update forward-looking statements to reflect actual results changed assumptions or other factors.

For further information, please contact

Company : Investor Relations Advisors : PR Advisors : Hikal Limited Strategic Growth Advisors Pvt. Ltd. CIN: L24200MH1988PTC048028 CIN: U74140MH2010PTC204285 Mr. Anish Swadi Mr. Jigar Kavaiya Ms. Meeral Salia anish_swadi@hikal.com jigar.kavaiya@sgapl.net meeral.s@sgapl.net +91 9920602034 +91 7738364559 www.hikal.com www.sgapl.net www.sgapl.net

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