Hikal Limited · NSE:HIKAL
Hikal — Q2 FY25 Earnings Presentation
39 slides from Hikal's earnings presentation, November 2024
Slide 1: Investor Presentation: Q2 & H1 FY25
Investor Presentation: Q2 & H1 FY25 November, 2024
Slide 2: Safe Harbor
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
Slide 3: Executive Chairman’s Message
Executive Chairman’s Message “The chemical market is gradually showing signs of improvement in 2024 with volumes showing a marginal growth ov er last year. In Q2 FY25, our revenue amount ed to Rs. 453 Cr, wit h an EBITDA of Rs. 75 Cr, reflect ing growth on both QoQ and YoY basis. For t he H1 FY25, r
Slide 4: Quarterly Financials Highlights
Quarterly Financials Highlights 4
Slide 5: Q2 FY25: Operational Highlights
Q2 FY25: Operational Highlights Revenue EBITDA PAT EBITDA Margin EPS Rs. 453 Crore Rs. 75 Crore Rs. 18 Crore 16.5 % Rs. 1.47 YoY 4% YoY 30% YoY 45% YoY 329 bps YoY 45% QoQ 11% QoQ 29% QoQ 248% QoQ 223 bps QoQ 248% 55
Slide 6: Q2 FY25: Consolidated Performance
Q2 FY25: Consolidated Performance Rs. In crores Revenue EBITDA EBITDA% 435 453 16.5 407 75 14.3 13.2 58 57 Q1FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY24 Q2FY25 COMMENTARY • Pharmaceutical business demonstrated robust performance • Revenue recorded at Rs 453 Crore • Increased volume demand
Slide 7: Q2 FY25: Pharmaceuticals Performance
Q2 FY25: Pharmaceuticals Performance Rs. In crores Revenue EBIT 294 270 229 40 9 12 Q1FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY24 Q2FY25 COMMENTARY • Volume improvement to continue on account of widespread • 16 customer audits completed successfully during the and deeper penetration globally in API business qu
Slide 8: Q2 FY25: Crop Protection Performance
Q2 FY25: Crop Protection Performance Rs. In crores Revenue EBIT 177 165 159 22 21 8 Q1FY25 Q2FY24 Q2FY25 Q1FY25 Q2FY24 Q2FY25 COMMENTARY • Margin profile was impacted due to reduced operating leverage • Witnessing relatively better traction in domestic market for our • Currently 7 CDMO Projects in p
Slide 9: Q2 FY25: Revenue Contribution
Q2 FY25: Revenue Contribution Revenue Split Pharmaceuticals: Revenue Contribution 27% Q2 Q2 41% FY24 59% FY25 73% 62.2% 64.9% Crop Protection: Revenue Contribution 37.8% 35.1% 24% 31% Q2 Q2 FY24 FY25 69% Q2FY24 Q2FY25 76% Pharmaceuticals Crop Protection CDMO Own products 99
Slide 10: Q2 FY25: Consolidated P&L
Q2 FY25: Consolidated P&L Particulars (Rs. In crores) Q2FY25 Q2FY24 YoY Q1FY25 QoQ Revenue 452.9 434.9 4% 406.8 11% Expenditure 378.1 377.4 348.7 EBITDA 74.8 57.5 30% 58.1 29% EBITDA Margin 16.5% 13.2% 14.3% Other Income 0.4 1.0 0.5 Depreciation 31.7 28.6 31.8 Interest 18.8 13.1 19.8 PBT 24.6 16.8 4
Slide 11: Half Yearly Financials Highlights
Half Yearly Financials Highlights 11
Slide 12: H1 FY25: Operational Highlights
H1 FY25: Operational Highlights Revenue EBITDA PAT EBITDA Margin EPS Rs. 860 Crore Rs. 133 Crore Rs. 23 Crore 15.5 % Rs. 1.89 YoY 4% YoY 23% YoY 20% YoY 237 bps YoY 20% 12 12
Slide 13: H1 FY25: Consolidated Performance
H1 FY25: Consolidated Performance Rs. In crores Revenue EBITDA EBITDA% 133 15.5 823 860 108 13.1 H1FY24 H1FY25 H1FY24 H1FY25 H1FY24 H1FY25 Pharmaceuticals Crop Protection 495 523 328 336 Revenue Revenue H1FY24 H1FY25 H1FY24 H1FY25 49 39 29 EBIT EBIT 22 H1FY24 H1FY25 H1FY24 H1FY25 13 13
Slide 14: H1 FY25: Revenue Contribution
H1 FY25: Revenue Contribution Revenue Split Pharmaceuticals: Revenue Contribution 28% H1 H1 37% FY24 63% FY25 72% 62.2% 60.9% Crop Protection: Revenue Contribution 37.8% 39.1% 23% 31% H1 H1 FY24 FY25 77% 69% H1FY24 H1FY25 Pharmaceuticals Crop Protection CDMO Own products 14 14
Slide 15: H1 FY25: Consolidated P&L
H1 FY25: Consolidated P&L Particulars (Rs. In crores) H1FY25 H1FY24 YoY Revenue 859.7 822.9 4% Expenditure 726.8 715.2 EBITDA 132.9 107.7 23% EBITDA Margin 15.5% 13.1% Other Income 0.9 1.9 Depreciation 63.5 56.3 Interest 38.6 26.9 PBT 31.6 26.5 19% Tax 8.3 7.1 Net Profit 23.3 19.4 20% PAT Margin 2.7
Slide 16: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. In Crore) Sep-24 Mar-24 Equities & Liabilities (Rs. Crore) Sep-24 Mar-24 Total Non Current Assets 1,530 1,520 Shareholders Fund 1,203 1,188 Property, Plant and Equipment 965 996 Share Capital 25 25 Capital work in Progress 438 414 Other Equity 1,179 1,163 Right
Slide 17: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. In Crore) Half year ended 30-Sep-24 Half year ended 30-Sep-23 Profit before tax 32 26 Adjustments 101 87 Operating Profit Before Working Capital Changes 133 113 Change in operating assets and liabilities 48 3 Cash generated from operations 180 117 In
Slide 18: About Us
High Resolution Image needed About Us
Slide 19: Our Vision & Mission
Our Vision & Mission VISION MISSION To be the leading global fine To create value through superior, chemical company to the chemical products and operate as a Pharmaceutical, Crop Protection, responsible company. Building trust We have a strong presence across multiple segments with a and Specialty
Slide 20: Key Milestones
Key Milestones 1988 1991 1995 1997 Founded by Jai Hiremath as a First Plant site set up in Listed on Bombay Stock Taloja plant commissioned for chemical business Mahad, Maharashtra Exchange & National Stock CDMO Project with US Innovator Exchange 2009 2001 2000 New R&T Centre established & Tokyo Acq
Slide 21: Domestic & Global Presence
Domestic & Global Presence We Service Clients Globally Through our Global Footprint Panoli Taloja Europe USA Japan Pune India Navi Mumbai Bengaluru Mahad Corporate HQ R&T center, Integrated Mini Plant Manufacturing Site We serve markets across Americas, Europe, ME & We have offices across USA, Europ
Slide 22: Manufacturing Capabilities
Manufacturing Capabilities Pharmaceuticals Jigani Unit 1, Karnataka Jigani Unit 2, Karnataka Panoli, Gujarat • US FDA Approved API and Advanced Intermediates • Scale-up and Launch Plant • Acquired Manufacturing site from Novartis in 2000 Manufacturing Site • Multipurpose and Multi-product cGMP Facil
Slide 23: Our state-of-the-art R&T facility
Our state-of-the-art R&T facility 15 4 1 Synthetic Instrumentation Kilo Lab Laboratories Labs (Scale up & Pilot) 1 1 1 Process Effluent Solid State Safety Treatability Chemistry Lab Lab Lab 1 1 1 Innovation Simulation High Lab Lab Pressure Lab 6 >250 26 Process Post PhD Development Lab Graduates 23
Slide 24: Key Operational Metrics
Key Operational Metrics 5 $60Mn 3000+ 24 Manufacturing facilities Capex invested in new Assets Employees Production Blocks Pharmaceuticals Crop Protection 67 27 2,460MT 1 Kilo lab 22 3,740MT Active DMFs Commercialized Active P h a r m a (Scale up & Pilot) Commercialized Active Ingredients APIs Ingre
Slide 25: Sustainability Initiatives
Sustainability Initiatives
Slide 26: ESG Strategy
ESG Strategy E nvironment Decarbonization Material circularity Water management S ocial Community Health and safety Diversity & inclusion Employee relations Customers G overnance Governance Transparency & risk Fair sourcing & corruption management Note: * Resource Intensity 26
Slide 27: ESG – Key Initiatives
ESG – Key Initiatives PHASE 1 PHASE 2 PHASE 3 Initiation Program (Completed) Program Governance (Ongoing) Actions & Impact (To commence) • Baselining for GHG1&2 • Baselining for GHG Scope 3 • Submission SBTi Targets • Material Topics Identification • Signatory to SBTi • Deployment of Energy saving P
Slide 28: Regulatory Approvals
Regulatory Approvals Integrated Management Key Regulatory Approvals Systems across all sites 28
Slide 29: Awards
High Resolution Image needed Awards
Slide 30: Awards & Accolades
Awards & Accolades Our Corporate Communications & Digital team awarded Our Chairman recognised by WWF India for with the Bronze Award for Excellence in Environmental Hikal’s impactful contribution towards Nature Stewardship at the Imagexx 2024 Summit Awards for Gaudian Program Hikal's #PledgeForGree
Slide 31: Historical Financials
High Resolution Image needed Historical Financials
Slide 32: Yearly Financial Highlights
Yearly Financial Highlights Rs. In crores Revenue EBITDA PAT 2,023 341 161 1,943 323 1,785 1,720 133 273 267 1,507 257 84 78 70 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 32
Slide 33: Yearly Segmental Highlights
Yearly Segmental Highlights Rs. In crores Pharmaceuticals Revenue Crop Protection Revenue 1,130 1,115 1,100 908 1,060 813 887 661 684 620 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Pharmaceuticals EBIT Crop Protection Revenue 170 115 151 100 103 103 128 74 93 65 FY20 FY21 FY22 FY23 FY24 FY20
Slide 34: Sales Break-Up
Sales Break-Up Pharmaceuticals Revenue Break-Up Crop Protection Revenue Break-Up 35.0% 41.0% 44.0% 41.0% 54.0% 69.0% 76.7% 75.7% 74.0% 77.0% 65.0% 59.0% 56.0% 59.0% 46.0% 31.0% 26.0% 23.3% 24.3% 23.0% FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 CDMO Own Products 34
Slide 35: Consolidated Profit & Loss – Full Year
Consolidated Profit & Loss – Full Year Particulars (Rs. In Crore) FY24 FY23 Y-o-Y Net Sales 1,785 2,023 -12% EBITDA 267 257 +4% Margin 15.0% 12.7% 230 bps Depreciation 118 109 Finance Costs 56 48 Exceptional Item - - PBT 95 105 -9% Tax 26 27 Net Profit 70 78 -11% Margin 3.9% 3.9% - 35
Slide 36: Consolidated Balance Sheet
Consolidated Balance Sheet Assets (Rs. In Crore) Mar-24 Mar-23 Equities & Liabilities (Rs. Crore) Mar-24 Mar-23 Total Non Current Assets 1,520 1,446 Shareholders Fund 1,188 1,134 Property, Plant and Equipment 996 885 Share Capital 25 25 Capital work in Progress 414 402 Other Equity 1,163 1,109 Right
Slide 37: Consolidated Cash Flow Statement
Consolidated Cash Flow Statement Particulars (Rs. In Crore) Full Year ended 31-Mar-24 Full Year ended 31-Mar-23 Profit before tax 95 105 Adjustments 175 163 Operating Profit Before Working Capital Changes 270 268 Change in operating assets and liabilities (53) 76 Cash generated from operations 217 3
Slide 38: Ratio Analysis
Ratio Analysis ROE% ROCE% 21.6% 16.1% 15.0% 12.5% 15.2% 10.7% 8.5% 8.2% 7.1% 6.1% 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 Net Debt / Equity (x) Net Debt / EBITDA (x) 0.7 2.6 0.7 0.6 0.6 0.6 2.1 2.1 1.8 1.8 2020 2021 2022 2023 2024 2020 2021 2022 2023 2024 38
Slide 39: Thank You
Thank You Company: Investor Relations Advisors : Hikal Limited Strategic Growth Advisors Pvt. Ltd CIN: L24200MH1988PTC048028 CIN: U74140MH2010PTC204285 Mr. Kuldeep Jain Mr. Jigar Kavaiya / Ms. Ami Parekh Kuldeep_jain@hikal.com +91-9920602034 / +91-8082466052 jigar.kavaiya@sgapl.net/ ami.parekh@sgapl