Hikal Q4 concall highlights -
Q4 outcomes -
Revenues - 545 cr, up 9 pc yoy
EBITDA - 90 cr, up 48 pc yoy, margins at 16.5 pc, up 437 bps yoy
PAT - 36 cr, up 74 pc yoy
Segment wise results -
Pharma -
Revenues - 309 vs 308 cr
EBIT - 36 vs 30 cr due lower RM costs
Multipurpose animal health plant to be operational in H1 FY 24
Other cost optimisation efforts in place
Enhanced traction from existing and new CDMO customers
Crop Protection -
Revenues - 236 vs 194 cr
EBIT - 31 vs 12 cr, due fall in RM prices
New multipurpose plant at Panoli to go live in Q1 FY 24
New opportunities in advanced stages with global innovators
Sales break up - Generics : CDMO -
Pharma - 59:41
Crop protection - 26:74
Overall for the company - 44:56
Dispute between Hiramath and Kalyani group (2 biggest shareholders) is a private dispute. Not likely to have any material impact on financial performance of the company
Pharma industry’s pricing pressures abating
8-9 generic APIs in development phase. Aim to launch 3-4 this yr
02 Pharma CDMO products likely to go commercial this yr
API plant at Panoli received zero US FDA observations during its audit
Various cost optimisation programs running currently to improve margins
Demand for agrochemicals - subdued in Q4. Expected to remain same in H1 FY24
Witnessing increased traction in enquiries in CDMO segment in agrochemicals from existing and new customers
Seeing India as a major beneficiary of China+1 shift
Expecting significant ramp up in growth and margins in next 3 yrs on the back of increased focus on CDMO operations
Expect a challenging H1 but still better than LY. Expect significant ramp up in H2
Margins expected to be better in FY 24 vs 23 despite tepid H1
Validation Batches for Animal Health CDMO contract to start in H2. Commercial quantities to start in FY 25 end
Till then, validation batches to contribute to sales
New agrochemicals plant being commissioned (next Qtr) is for both own and CDMO products
With Panoli API plant being cleared by USFDA, company now has 02 USFDA approved API plants. Gives a lot of confidence to the customers
Total capex over last 3 yrs-700 cr. Expect asset turns of 1.5 times or so in about 2 yrs. Capex for FY 24 to be around 200 cr
Full yr EBITDA margins for FY 24 should be better than FY 23 margins
R&D spends at around 4 pc of revenues
Additional Pharma revenues to flow in this yr from the capex done at Panoli and Bengaluru over last 2 yrs
Animal Pharma business to cross 500cr+ run rate in next 5 yrs
Aim to reach FY22 end bottomline by FY24 end
FY25 should be much better
Planing to take up a tracking position
Subscribe To Our Free Newsletter |