In Q4 FY24 company’s crop protection business reported revenue of Rs 177 crore and EBIT of Rs 14 crore.
Hikal Ltd., a preferred long-term partner for leading global life sciences companies, announced its financial results for the quarter and full year ended 31st March 2024. In FY 2024 company reported revenue of Rs. 1,785 crores while EBITDA stood at Rs 267 crores. Company’s Profit After Tax stood at Rs 70 crores. Crop Protection sales stood at Rs 177 crores as compared to Rs. 180 crores in Q3 FY24.
Commenting on the results, Jai Hiremath, Executive Chairman, Hikal Ltd. said, “For the financial year ’24, we achieved revenues of Rs 1,785 Crores as compared to Rs 2,023 Crores last year. FY24 was marred with several global macroeconomic pressures and depressed market conditions for the global chemical sector on account of inventory build-up and overcapacity across the sector resulting in intense price competition from China predominantly in the Crop Protection market.
In our CDMO segment we have received several RFPs from both emerging pharma and global innovators, with several products progressing through the development stages. We have a healthy pipeline of projects in the early to mid-phase that is encouraging. During FY24, our API facility in Panoli, Gujarat, was audited by the US FDA, and the audit was concluded with ‘Zero’ 483 observations as a testament of our commitment to high standards of regulatory compliance.
For Q4FY24, our crop protection business reported revenue of Rs 177 Cr and EBIT of Rs 14 crore. Despite proactive cost improvement initiatives, the global crop protection industry continues to face significant headwinds, including subdued global demand due to inventory in the channel pipeline and intense price erosion from competitors primarily China as a result of large capacity which are under-utilized. We expect the market to stabilise post the end of this financial year and recovery to begin thereafter.
In our animal health business, advancements in developing a portfolio of products under a long-term agreement with an innovator animal health company are proceeding well. During the third quarter, our new multipurpose animal health facility was commissioned at Panoli, Gujarat. Validation of several products is underway, and it is scheduled to be completed in the upcoming quarters. These validation batches mark the initial phase toward product registration and subsequent commercialisation.
