Hikal Ltd (BOM:524735)
₹ 359.55 -6.4 (-1.75%) Market Cap: 44.33 Bil Enterprise Value: 51.67 Bil PE Ratio: 63.36 PB Ratio: 3.86 GF Score: 78/100

Q2 2025 Hikal Ltd Earnings Call Transcript

Nov 12, 2024 / 11:00 AM GMT
Release Date Price: ₹384.75 (+2.31%)

Key Points

Positve
  • Hikal Ltd (BOM:524735) reported a significant revenue growth of 29% year-on-year for Q2 FY25, with EBITDA increasing by 30%.
  • The company has successfully validated six products in its pharmaceutical division, with plans to validate more in the coming months.
  • Hikal Ltd has improved its working capital and cash flow, reducing working capital by 50 crores.
  • The pharmaceutical business showed strong performance with a 9% year-on-year revenue increase, driven by successful customer acquisition and increased demand.
  • The company is well-positioned to capitalize on the China plus one strategy, particularly in the CDMO sector, with a healthy pipeline and technological advancements.
Negative
  • The crop protection business experienced a 4% decline in value despite a 22% increase in volume, indicating pricing pressures.
  • Finance costs and depreciation from recent asset additions impacted profit before and after tax.
  • The crop protection sector is still facing challenges with excess inventory and is expected to take a few more quarters to stabilize.
  • The company faces competition from China in the crop protection business, particularly in older generic molecules.
  • Hikal Ltd's debt remains a concern, with a repayment of 130 crores expected next year, and ongoing investments in assets.


Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

HIKA.NS - Hikal Ltd
Q2 2025 Hikal Ltd Earnings Call
Nov 12, 2024 / 11:00AM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, good day and welcome to Haer Limited Q2 F 525 earnings conference call as a reminder, all participant line will be in listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need any assistance during the conference call? Please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded.

I now hand the conference over to Mr Samir Hirama, Managing Director of Haer Limited. Thank you and over to you, sir.

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Unidentified_2 [2]
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