Hikal Ltd conducted the concall today at 2:30 pm
Here are the Conference call highlights
" The company is targeting to becoming a leading global consultation business with HIKAL 2.0."
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Here are the Conference call highlights
" The company is targeting to becoming a leading global consultation business with HIKAL 2.0."
Hit 'Retweet' to educate more investors ☎️🧵
Outlook
- The company has delivered good growth on yearly scale.
- This was possible due to favourable product mix, less disruptions and strong performance in own generic as well as CDMO segment.
- The company has delivered good growth on yearly scale.
- This was possible due to favourable product mix, less disruptions and strong performance in own generic as well as CDMO segment.
- Their Pharma business, reported strong growth in their own generic and CDMO segment.
- They were boosted with innitiatives to cut their cost to reach further excellence.
- They were boosted with innitiatives to cut their cost to reach further excellence.
- On revenue break up, There has been huge jump in their own products line, Contributing maximum of pharmas revenue.
- CDMO business has seen a decline compared to last year.
- CDMO business has seen a decline compared to last year.
- For their Crop protection business, entry to new products has helped them to provide better revenue.
- They have successfully scaled up a new fungicide for japanese customer in their CDMO business.
- A strong surge is seen in their CDMO customer line.
- They have successfully scaled up a new fungicide for japanese customer in their CDMO business.
- A strong surge is seen in their CDMO customer line.
- The majority of the crop protection revenue comes from CDMO by about 69% and own product contribute 31% of crop revenue.
- Company had faced issues in one of their plant due to heavy rain, They expect to start it back as soon as possible.
- Company had faced issues in one of their plant due to heavy rain, They expect to start it back as soon as possible.
- They have focus to move towards hikal 2.0.
- This will working on a new scale, to undertake start ups and cover high growth areas like animal care business.
- It's been a year or so for global consulting.
- This will working on a new scale, to undertake start ups and cover high growth areas like animal care business.
- It's been a year or so for global consulting.
- Hikal 2.0 is based on 7 pillars to cover and prove its excellence.
- The company didn't face any issue related to delayed order.
- At present 7 to 8 products are under pipeline and under pharma space 3 to 4 molecules and API are expected to be launched soon.
- Pipeline is healthy and new R&D Center will improve it further.
- At present 7 to 8 products are under pipeline and under pharma space 3 to 4 molecules and API are expected to be launched soon.
- Pipeline is healthy and new R&D Center will improve it further.
- The molecules are big and the results will say that in times to come.
- Management in 3 years from now will grow on base of excellence and leadership.
- On lead products of company, they are able to maintain its margins with sustained controlled cost linked to it.
- Management in 3 years from now will grow on base of excellence and leadership.
- On lead products of company, they are able to maintain its margins with sustained controlled cost linked to it.
- On Bio front, it got good growth potential of orders from europe and chinese markets.
- The segment is under development and it will help as a diversification of their crop segment.
- They expect it to be 100cr plus market in next 5 years.
- The segment is under development and it will help as a diversification of their crop segment.
- They expect it to be 100cr plus market in next 5 years.
Financials
- During the period, Company has reported good YOY growth but there has been a decline of 14% on quarterly basis.
- Same story, goes for EBITDA levels as well but their margins were also sustained.
- During the period, Company has reported good YOY growth but there has been a decline of 14% on quarterly basis.
- Same story, goes for EBITDA levels as well but their margins were also sustained.
- Companies increase in profitability has led it to a newer tax regime.
- The company is facing cost rise issue due to lower supply in the market.
- The company has decent power to pass its cost to its customers.
- The company is facing cost rise issue due to lower supply in the market.
- The company has decent power to pass its cost to its customers.
- In terms of gross margins, favourable mix has helped them to sustain and expected to do it in future as well.
- On Client base, no customer offers more then 10% revenue of business and top 10 combine deliver 75% growth.
- On Client base, no customer offers more then 10% revenue of business and top 10 combine deliver 75% growth.
- On debt front, The company has been able to load off majority of its debt due to lower working capital usage.
- Operating leverage and volume expansion has also helped them a lot to grow business.
- Operating leverage and volume expansion has also helped them a lot to grow business.
- The business lost due to climatic changes is expected to recoop by next 6 to 7 years.
- No products delivery was delayed.
- The company currently is working on 90% operating capacity and it is expected to increase with new capacity and favourable mixes.
- No products delivery was delayed.
- The company currently is working on 90% operating capacity and it is expected to increase with new capacity and favourable mixes.
Investments
- During the period, a new mini plant and 2 synthesis labs were commissioned.
- Along with them a new simulation lab was also established.
- Under pharmaceutical they have received license, for the production of APIs at Panoli site.
- During the period, a new mini plant and 2 synthesis labs were commissioned.
- Along with them a new simulation lab was also established.
- Under pharmaceutical they have received license, for the production of APIs at Panoli site.
- It is expected to start from Q2FY22. Along with additional production block at unit1,Jigani, bangalore.
- As discussed in last meeting as well, capitalisation will be around 75cr.
- 300 cr Capex, started 2 years ago is expected to over now.
- As discussed in last meeting as well, capitalisation will be around 75cr.
- 300 cr Capex, started 2 years ago is expected to over now.
- For next two years, Capex is expected to be around 250cr, final decision will be delivered in upcoming quarter's.
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