Hikal : Results FY23Q1

Extract of unaudited financial results for the quarter ended 30 June 2022

				(Rs in Lakhs)
Particulars	Quarter ended		Year ended
30-Jun-2231-Mar-2230-Jun-21	31-Mar-22
	Unaudited	Audited	Unaudited	Audited
Total income	38,206	50,262	45,996	194,761
Net Profit for the period (before tax, Exceptional and/or Extraordinary item)	(1,177)	2,895	6,839	21,857
Net Profit for the period before tax (after Exceptional and/or Extraordinary item)	(1,177)	2,895	6,839	21,857
Net Profit for the period after tax (after Exceptional and/or Extraordinary item)	(886)	2,071	5,054	16,051
Total Comprehensive Income for the period [Comprising profit for the period (after tax)	(856)	2,297	5,018	16,171
and Other Comprehensive income (after tax)]
Equity share capital	2,466	2,466	2,466	2,466
Other equity				104,332
Earnings Per Share (Face Value of Rs 2/- each) (for continuing and discontinued
operations)
- Basic	(0.72)	1.68	4.10	13.02
- Diluted	(0.72)	1.68	4.10	13.02

Note :

1 In respect of the standalone results of the Company, the amounts are as follows

		Standalone
Particulars	Quarter ended		Year ended
30-Jun-2231-Mar-2230-Jun-21	31-Mar-22
	Unaudited	Audited	Unaudited	Audited
Total income	38,206	50,262	45,996	194,761
Net Profit for the period (before tax, Exceptional and/or Extraordinary item)	(1,185)	2,900	6,835	21,857
Net Profit for the period before tax (after Exceptional and/or Extraordinary item)	(1,185)	2,900	6,835	21,857
Net Profit for the period after tax (after Exceptional and/or Extraordinary item)	(894)	2,076	5,050	16,051
Earnings Per Share (Face Value of Rs 2/- each) (for continuing and discontinued
operations)
- Basic	(0.73)	1.68	4.10	13.02
- Diluted	(0.73)	1.68	4.10	13.02

1. The above is an extract of the detailed format of quarterly financial results filed with the stock exchanges under regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The full format of the financial results are available on the stock exchange websites (www.bseindia.com and www.nseindia.com) and on Company's website (www.hikal.com).
2. The figures for the previous periods have been regrouped wherever necessary to conform to the current period presentation.

For HIKAL LTD

JAI VISHWANAT H HIREMATH

Digitally signed by

JAI VISHWANATH HIREMATH Date: 2022.08.10 15:42:07 +05'30'

Place :	Mumbai	Jai Hiremath
Date	: 10 August 2022	Executive Chairman
		DIN: 00062203
		HIKAL LTD
		Regd. Office : 717/718, Maker Chamber V, Nariman Point, Mumbai - 400 021.
		Phone : [phone] , Fax : [phone]
		CIN : L24200MH1988PTC048028, E Mail : [e-mail] , Website : www.hikal.com
		Just the right chemistry

	12th Floor, The Ruby
	29 Senapati Bapat Marg
Chartered Accountants	Dadar (West)
Mumbai - 400 028, India
	Tel: [phone]

Independent Auditor's Review Report on the Quarterly Unaudited Standalone Financial Results of the Company Pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report to

The Board of Directors

Hikal Limited

1. We have reviewed the accompanying statement of unaudited standalone financial results of Hikal Limited (the "Company") for the quarter ended June 30, 2022 (the "Statement") attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").
2. This Statement, which is the responsibility of the Company's Management and approved by the Company's Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34, (Ind AS 34) "Interim Financial Reporting" prescribed under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India and in compliance with Regulation 33 of the Listing Regulations. Our responsibility is to express a conclusion on the Statement based on our review.
3. We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the Statement is free of material misstatement. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
4. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with the recognition and measurement principles laid down in the aforesaid Indian Accounting Standards ('Ind AS') specified under Section 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India, has not disclosed the information required to be disclosed in terms of the Listing Regulations, including the manner in which it is to be disclosed, or that it contains any material misstatement.
5. We draw attention to note 4 to the Statement, as regards the ongoing investigations by statutory authorities in relation to alleged non-compliance with certain environmental laws and regulations, the outcome of which is subject to inherent uncertainties. Our conclusion is not modified in respect of this matter.

For S R B C & CO LLP

Chartered Accountants

ICAI Firm registration number: 324982E/E300003

VINAYAK SHRIRAM PUJARE

Digitally signed by VINAYAK SHRIRAM PUJARE

DN: cn=VINAYAK SHRIRAM PUJARE, c=IN, o=Personal, email=[e-mail] Date: 2022.08.10 15:59:05 +05'30'

per Vinayak Pujare Partner

Membership No.: 101143

UDIN: 22101143AOSOVX6209

Place: Gurgaon

Date: August 10, 2022

S R B C & CO LLP, a Limited Liability Partnership with LLP Identity No. AAB-4318

Regd. Office : 22, Camac Street, Block 'B', 3rd Floor, Kolkata-700 016

Statement of unaudited standalone financial results

for the quarter ended 30 June 2022

	Rs. In Lakhs (Except for per share data)
		Standalone
		Quarter ended		Year ended
Particulars	30-Jun-22	31-Mar-22	30-Jun-21	31-Mar-22
	Unaudited	Audited	Unaudited	Audited
		(Refer note 3)
Income
Revenue from operations
Sale of products and services	37,132	50,095	45,450	192,603
Other operating revenue	747	140	228	1,669
Total revenue from operations	37,879	50,235	45,678	194,272
Other income	327	27	318	489
Total income	38,206	50,262	45,996	194,761
Expenses
Cost of materials consumed	23,778	27,345	23,074	103,221
Changes in inventories of finished goods and work-in-progress	(1,140)	412	(583)	(3,582)
Employee benefits expense	4,275	5,315	4,758	20,135
Finance costs	1,129	808	799	3,121
Depreciation and amortisation expenses	2,650	2,423	2,256	9,567
Other expenses	8,699	11,059	8,857	40,442
Total expenses	39,391	47,362	39,161	172,904
Profit before tax	(1,185)	2,900	6,835	21,857
Tax expense:
-Current tax	-	780	1,889	5,965
-Deferred tax	(291)	44	(104)	(159)
Total tax expense	(291)	824	1,785	5,806
Profit for the period	(894)	2,076	5,050	16,051
Other comprehensive income (OCI)
Items that will not be reclassified to statement of profit and loss	40	305	(48)	162
	(10)	(79)	12	(42)
Income tax relating to item that will not be reclassified to statement of profit and loss
Total comprehensive income	(864)	2,302	5,014	16,171
Paid-up equity share capital (Face value of Rs 2/- each)	2,466	2,466	2,466	2,466
Other equity				104,335
Earnings per share (Face Value of Rs 2/- each)
- Basic	(0.73)	1.68	4.10	13.02
- Diluted	(0.73)	1.68	4.10	13.02

Notes :

1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on 10 August 2022.
2. The standalone financial results for the quarter ended on 30 June 2022 have been subjected to a 'Limited Review' by the statutory auditors of the Company. The statutory auditors have expressed an unmodified review conclusion. The limited review report will be filed with the stock exchanges and will also be available on the Company's website, www.hikal.com.
3. The figures for the quarter ended 31 March 2022 as reported in these financial results are the balancing figures between audited figures in respect of the full financial year upto 31 March 2022 and the unaudited published year-to-date figures up to 31 December 2021, being the date of the end of the third quarter of the financial year which were subjected to limited review.
4. In connection with the alleged improper disposal of by-products by the Company in January 2022, statutory authorities are conducting investigations in relation to non-compliance with certain environmental lawsand regulations, which are ongoing.
   During the quarter, Maharashtra Pollution Control Board (MPCB) had directed the Company to stop manufacturing activities at its Taloja plant on grounds of not adhering to conditions stipulated in the relevantConsent to Operate. But subsequently, pursuant to an order of Honourable Bombay High Court, MPCB granted permission on 29 June 2022 to re-start manufacturing activities at the plant .
   Separately, the National Green Tribunal ('NGT') had constituted a Committee to make recommendations in this regard. The Committee submitted its recommendations to the NGT, and inter alia, the Committee recommendsrecovery of compensation from the Company and alleges instances of non- compliance with environmental laws and regulations. These recommendations are yet to be adjudicated and accepted judicially by the NGT. Based on the advice of external legal counsel, theCompany believes it has a good case on merits in these matters, and the Company is taking necessary steps, including legal measures, to defend itself.
5. The figures for the previous periods have been regrouped wherever necessary to conform to the current period presentation.

For HIKAL LTD

JAI VISHWANAT H HIREMATH

Digitally signed by

JAI VISHWANATH HIREMATH Date: 2022.08.10 15:40:29 +05'30'

Place	:	Mumbai	Jai Hiremath
Date	:	10 August 2022	Executive Chairman
			DIN: 00062203
			HIKAL LTD
			Regd. Office : 717/718, Maker Chamber V, Nariman Point, Mumbai - 400 021.
			Phone : [phone] , Fax : [phone]
			CIN : L24200MH1988PTC048028, E Mail : [e-mail] , Website : www.hikal.com
			Just the right chemistry

Standalone segment wise revenue, results, assets and liabilities

for the quarter ended 30 June 2022

		Standalone
		Quarter ended		Year ended
Particulars	30-Jun-22	31-Mar-22	30-Jun-21	31-Mar-22
	Unaudited	Audited	Unaudited	Audited
		(Refer note 3)
1. Segment revenue
a) Pharmaceuticals	22,429	30,794	27,407	112,974
b) Crop protection	15,450	19,441	18,271	81,298
Total	37,879	50,235	45,678	194,272
Less: Inter segment revenue	-	-	-	-
Revenue from operations	37,879	50,235	45,678	194,272
2. Segment results
a) Pharmaceuticals	(819)	2,971	4,811	15,102
b) Crop protection	1,027	1,162	3,184	11,514
Total	208	4,133	7,995	26,616
Less :
i) Finance cost	1,129	808	799	3,121
ii) Other un-allocable expenditure	326	453	432	1,814
Add:
i) Other un-allocable income	62	28	71	176
Profit before tax	(1,185)	2,900	6,835	21,857
3. Segment assets
a) Pharmaceuticals	114,546	118,937	116,353	118,937
b) Crop protection	84,599	85,456	65,549	85,456
c) Unallocable	20,014	16,920	12,708	16,920
Total assets	219,159	221,313	194,610	221,313
4. Segment liabilities
a) Pharmaceuticals	19,145	17,529	16,327	17,529
b) Crop protection	19,644	19,934	13,233	19,934
c) Unallocable	74,433	77,049	66,694	77,049
Total liabilities	113,222	114,512	96,254	114,512

For HIKAL LTD

JAI	Digitally signed
VISHWANA	by JAI
VISHWANATH
TH	HIREMATH
HIREMATH	Date: 2022.08.10
15:50:59 +05'30'

		Jai Hiremath
Place	: Mumbai	Executive Chairman
Date	: 10 August 2022	DIN: 00062203

HIKAL LTD

Regd. Office : 717/718, Maker Chamber V, Nariman Point, Mumbai - 400 021.

Phone : [phone] , Fax : [phone]

CIN : L24200MH1988PTC048028, E Mail : [e-mail] , Website : www.hikal.com

Just the right chemistry