Q2 Results - Net sales up by 16% to Rs. 125 crore

Mumbai, October 22, 2009: Hikal Ltd, the preferred long-term outsourcing partner for leading global life sciences companies, today announced its financial results for the second quarter ended 30^th September, 2009.

Performance highlights for the Quarter ended 30^th September, 2009

·         Net sales up by 16% to Rs.125 crore as compared to Rs.107 crore in the corresponding quarter of the previous year.

·         Net Profit before provision of reversal of cash flow hedge reserve is Rs.24 crore  as compared to Rs.17 crore in the corresponding quarter of the previous year, an increase of  41% 

·         Net Profit has dropped by 27% to Rs.13 crore from Rs.17 crore in the corresponding quarter of the previous year after providing Rs. 11 crore towards cash flow hedge reserve.

·         Pharmaceutical sales up by 29% to Rs.85 crore as compared to Rs.66 crore in the corresponding quarter of the previous year.

Commenting on the results, Jai Hiremath, Vice Chairman & Managing Director, Hikal Ltd. said, “The company registered satisfactory performance in this quarter, inspite of the difficult economic situation. Our total sales are up by 16% and pharma sales grew by 29%.  However, there has been a decline in the net profit due to the Rs.11 crore provision made towards the cash flow hedge reserve. We expect a positive trend in the forthcoming quarters”

About Hikal:

Hikal is a reliable long-term outsourcing partner to companies in the Pharmaceuticals, Crop protection Products, and Specialty Chemicals industry. The company has been supplying key active ingredients (AI) and intermediates, manufactured using stringent global quality standards, for its customers in the United States, Europe and Japan. Hikal’s advanced manufacturing facilities have been inspected and approved by leading global players in Crop protection and Pharmaceutical sectors. The crop protection facilities are located at Taloja and Mahad (Maharashtra). Hikal’s manufacturing activities are supported by state-of-the-art research centres and pilot plant facilities located at Bangalore and Taloja respectively. The API and pharmaceutical intermediates manufacturing facilities are situated in Jigani (Bangalore) and Panoli (Gujarat), respectively. Hikal has also commissioned Acoris Research Ltd., a state-of-the-art contract research facility at the International Biotech Park, Pune.