October 26, 2021

Dept. of Corporate Services, BSE Ltd., P J Towers, Dalal Street, Mumbai - 400 00 I.

Listing Department, National Stock Exchange of India Ltd., Exchange Plaza, Bandra Kurla Complex, Bandra (East), Mumbai 400051.

BSE Scrip Code : 524735

NSE Symbol : HIKAL

Dear Sir/ Madam,

Subject: Results Presentation of the Company for the quarter and half-year ended September 30, 2021

With reference to the subject, we are enclosing a copy of the Results presentation on the Unaudited Standalone and Consolidated Financial Results of the Company for the quarter and half year ended September 30, 2021.

This is for your information and records.

Thank you,

Yours sincerely, for IDKAL LIMITED,

Rajasekhar Reddy Company Secretary

Encl: As above.

Hikal Ltd.

Ad min. Office: Great Eastern Chambers. 6th Floor, Sector 11, CBD Belapur, Navi Mumbai - 400 614, India, Tel : +91-22-6277 0299, Fax: +91-22-2757 4277

Regd. Office : 717, Maker Chamber - 5, Nariman Point, Mumbai - 400 021. India Tel : +91 22-6277 0477, +91-22-6277 0500

HÍKAL

Results Presentation - Q2 & H1 FY22

Safe Harbor

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Hikal Limited (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

Certain matters discussed in this Presentation may contain statements regarding the Company's market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of the economies of various international markets, the performance of the industry in India and world-wide, competition, the company's ability to successfully implement its strategy, the Company's future levels of growth and expansion, technological implementation, changes and advancements, changes in revenue, income or cash flows, the Company's market preferences and its exposure to market risks, as well as other risks. The Company's actual results, levels of activity, performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are not adopted by the Company and the Company is not responsible for such third party statements and projections.

Executive Chairman's Message

Jai Hiremath

"Hikal has delivered another quarter of positive performance. From a segmental performance perspective, the Crop Protection business has performed well, registering a positive YoY growth of 105% in Q2 on the back of strong volume growth of our existing products and further scale up of volumes of our new products. We expect this positive momentum to continue in the next few quarters based on a healthy pipeline of products at various stages.

Unusually heavy rainfalls in the Raigad region had a severe impact on our Mahad operations leading to the shutdown of our Mahad facility for several weeks. This led to a loss in sales and profitability for the crop division. Relentless efforts by our teams from all our sites helped in restarting our operations in a staggered manner and we were able to return to normal operations in due course.

Our Pharmaceutical business remained flat due to a slower offtake by customers in this quarter. This was primarily due to several raw material shortages and global logistics issues. We expect raw material challenges to continue in the next few months and are working with both our suppliers and customers to mitigate the price fluctuations.

Our capex plans and our new product launch plans remain intact for both our divisions. We are seeing tailwinds in terms of new opportunities arising from global supply chain disruptions and the China plus one strategy playing out.

Global supply chain challenges coupled with a steep increase in input raw material prices continue to pose a challenge for our industry going forward. We have put in significant efforts over the past few years on developing alternate sourcing partners and backward integration of certain raw materials. While this will help us in the longterm, we do expect certain disruptions in the short term. Over the next several months we expect the situation to normalise.

As part of our efforts to fight the Pandemic, our employees across the company are 100% vaccinated for their first dose and about 75% have been vaccinated for their second dose. We expect to have all our employees fully vaccinated by the year end.

© Hikal Limited In alignment with our long-term vision and bold aspirations, we have set out on a transformational journey with a Global consultant to create a roadmap across our business verticals. This initiative will drive future growth and profitability, by giving us a new strategic direction and enabling us to chart our progress in a sustainable manner. The journey forward will not just entail accelerating growth in our existing pharma and crop protection businesses but will also see strong growth in our emerging business verticals such as animal health and biocides. 3

Quarterly Financial Highlights

Financial Highlights - Q2 FY22

Quarterly Performance Highlights

Performance Highlights

Revenue recorded an increase of 26% YoY
- Higher sales volumes for existing products augmented by addition of new products
- Strong performance in both segments own products as well as CDMO
EBITDA increased to Rs 91 Crore, growth of 30% YoY
- Higher demand as compared to Q2 last year resulting in higher operating leverage
Improved EBITDA margins by 62 bps YoY to reach 19.4%
- Improved product mix
- Higher operating leverage
PAT was Rs. 44 Crore, YoY growth of 63%
- Driven by product mix
Lowered interest rates
Notable ratio improvements in H1 FY22 vs FY'21
- Achieved ROCE of 18.1%; ROE of 19.4%
- Reduced Net debt to Equity from 0.61 to 0.57
Shutdown of the Mahad facility for 27 days in Q2 FY22 due to heavy rains led to a substantial impact on the revenue & profitability

Quarterly Performance Highlights – Pharmaceuticals

Pharmaceuticals - Performance Highlights

Recorded flat revenue at Rs. 280 Crore as compared to Q2 FY21
- Growth in volumes for several own products
EBIT at Rs 37 Crore, de-growth of 25% YoY
- Withdrawal of export incentives by GOI
- Product mix change coupled with increased raw material price
Commissioned new capacity in Unit-2, Jigani, Bangalore for CDMO Projects
Having received the manufacturing license, the production of APIs at Panoli site
Anti-diabetic portfolio of APIs for future is receiving healthy traction from customers

Quarterly Performance Highlights – Crop Protection

Crop Protection - Performance Highlights

Revenue recorded an increase of 105% YoY
- Increased sales volume of existing as well as new products
- Efficient pass through of raw material price increase
EBIT of Rs 34 Crore, growth of 335% YoY
- Higher operational leverage due to increased revenue
- Business excellence initiatives have resulted in increased throughput and reduction in costs, enabling us to meet increased market demand and improve margins
Increase in new inquiries from CDMO customers in Q2 FY22
Significant capex investment for multipurpose facility is on-track for new products

Quarterly Financial Highlights

Quarterly Segmental Highlights

Pharmaceuticals EBIT Crop Protection EBIT

Pharmaceuticals Revenue Crop Protection Revenue

Consolidated Profit & Loss – Q2 FY22

Particulars (Rs. Crore)	Q2 FY22	Q2 FY21	Y-o-Y	Q1 FY22	Q-o-Q

Net Sales	469	372	26%	457	3%

Expenditure	378	302		361

EBITDA	91	70	30%	96	-5%
Margin	19.4%	18.8%		21.0%

Other Income	1	1		3
Depreciation	24	21		23
Finance Costs	8	9		8
PBT	60	41	45%	68	-13%
Tax	16	14		18
Net Profit	44	27	63%	51	-13%
Margin	9.4%	7.2%		11.1%

Consolidated Balance Sheet

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Assets	Sep-21	Mar-21
Total Non Current Assets	1129	1,035
Property, Plant and Equipment	727	646
Capital work in Progress	249	245
Right to Use Assets	65	65
Other Intangible Assets	1	1
Intangible Assets Under Development	9	9
Financial Assets
Investments	1	1
Loans	-	-
Other	16	20
Non-Current Tax Assets (Net)	2	2
Deferred Tax Asset(Net)	-	-
Other Non Current Assets	60	45
Total Current Assets	939	878
Inventories	325	267
Financial Assets
Investments	18	-
Trade Receivables	436	485
Cash & Cash Equivalents	11	8
Bank Balances	33	29
Loans	8	-
Other	-	-
Other Current Assets	107	89
TOTAL ASSETS	2068	1,913

Equities & Liabilities	Sep-21	Mar-21
Shareholders Fund	1015	933
Share Capital	25	24
Other Equity	990	909
Total Non Current Liabilities	385	324
Financial Liabilities
Borrowings	296	263
Lease Liability	-	1
Provisions	24	22
Deferred Tax Liabilities (net)	36	38
Other Non-Current Liabilities	29	-
Total Current Liabilities	668	656
Financial Liabilities
Borrowings	328	346
Lease Liability	-	-
Trade Payables	241	230
Other Financial Liabilities	37	41
Other Current Liabilities	44	12
Provisions	4	4
Current Tax Liabilities (Net)	14	23
TOTAL EQUITY & LIABILITIES	2068	1,913

Rs. Crore	Half Year ended 30-Sep-21	Half Year ended 30-Sep-20

Profit before tax	128	64
Adjustments	67	59
Operating Profit Before Working Capital Changes	195	123
Change in operating assets and liabilities	28	(40)
Cash generated from operations	223	83
Income taxes paid	44	17
Net cash inflow from operating activities (A)	179	66

Net cash inflow/(outflow) from investing activities (B)	(156)	(65)

Net cash outflow from financing activities (C)	(19)	(25)

Net increase/(decrease) in cash and cash equivalents (A+B+C)	4	(23)

Cash and cash equivalents at the beginning of the year	8	32

Cash and cash equivalents at the end of the year	11	9

Half-Yearly Financial Highlights

Financial Highlights - Half-Yearly

Half-Yearly Performance Highlights

Sales Break-Up

Pharmaceuticals Revenue Break-Up Crop Protection Revenue Break-Up

Ratio Analysis

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Net Debt / Equity

Net Debt / EBITDA

* - Annualized

Annual Financial Highlights

Financial Highlights - Annual

Annual Performance Highlights

Yearly Financial Highlights

Yearly Segmental Highlights

Pharmaceuticals Revenue Crop Protection Revenue

Pharmaceuticals EBIT Crop Protection EBIT

Sales Break-Up

Pharmaceuticals Revenue Break-Up Crop Protection Revenue Break-Up

Consolidated Profit & Loss – Full Year

Particulars (Rs. Crore)	FY21	FY20	Y-o-Y

Net Sales	1,720	1,507	14%

Expenditure	1,397	1,234

EBITDA	323	273	18%
Margin	18.8%	18.1%

Other Income	5	4
Depreciation	85	82
Finance Costs	36	52
Exceptional Item	-	15
PBT	206	127	63%
Tax	73	42
Net Profit	133	84	58%
Margin	7.7%	5.6%

Annual Dividend Payout

▪ The above dividend is based on Face Value of Rs. 2 per share

Company :

Hikal Limited CIN: L24200MH1988PTC048028

Mr. Kuldeep Jain

Kuldeep\[email protected]

www.hikal.com

Hll<AL SGA Strategic Growth Advisors

Investor Relations Advisors :

Strategic Growth Advisors Pvt. Ltd. CIN: U74140MH2010PTC204285

Mr. Jigar Kavaiya +91-9920602034 [email protected]

AI assistant

Hikal Ltd. Interim / Quarterly Report 2021