MIRA
INFORM REPORT
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Report Date : |
03.05.2013 |
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Tel. No.: |
91-22-2757-4276 |
IDENTIFICATION DETAILS
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Name : |
HIKAL LIMITED |
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Registered
Office : |
717/718, Maker
Chambers V, 7th Floor, Nariman Point, Mumbai – 400 021, Maharashtra |
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Country : |
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Financials (as
on) : |
31.03.2012 |
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Date of
Incorporation : |
08.07.1988 |
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Com. Reg. No.: |
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Capital
Investment / Paid-up Capital : |
Rs. 164.401 millions |
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CIN No.: [Company Identification
No.] |
L24200MH1988PTC048028 |
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TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH07537F /
BRDH00497A |
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PAN No.: [Permanent Account No.] |
AAACH0383A |
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Legal Form : |
A Public Limited Liability company. The company’s Share are Listed on
the Stock Exchange. |
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Line of Business
: |
The Company is engaged in the manufacturing of various chemical
intermediates, specialty chemicals, Active pharma ingredients and Contracts
Research activities. |
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No. of Employees
: |
Information declined by the management. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba (50) |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Maximum Credit Limit : |
USD 18300000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a
well-established and reputed company having fine track record. Financial
position of the company appears to be sound. Trade relations are fair. Payments are
correct and as per commitments. The company can be considered normal for business dealings at usual trade terms and conditions. |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2012
|
Country Name |
Previous Rating (31.03.2012) |
Current Rating (30.06.2012) |
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India |
A1 |
A1 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
EXTERNAL AGENCY RATING
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Rating Agency Name |
ICRA |
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Rating |
(Long term Rating): BB+ |
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Rating Explanation |
Having moderate risk of default regarding
timely servicing of financial obligation |
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Date |
July 2012 |
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Rating Agency Name |
CARE |
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Rating |
(Short Term rating): A4+ |
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Rating Explanation |
Having minimal degree of safety regarding
timely payment of financial obligation it carry high credit risk and are
susceptible to default |
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Date |
July 2012 |
RBI DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available RBI Defaulters’ list.
EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS
Subject’s name is not enlisted as a defaulter
in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of
31-03-2012.
INFORMATION DENIED BY
|
Name : |
Mr. Sunil Naik |
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Designation : |
Accounts Department |
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Contact No.: |
91-22-27574276 |
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Date : |
29.04.2013 |
LOCATIONS
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Registered
Office / Corporate Office : |
717/718, Maker
Chambers V, 7th Floor, Nariman Point, Mumbai – 400 021, |
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Tel. No.: |
91-22-22301801 |
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Fax No.: |
91-22-22833913 |
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E-Mail : |
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Website : |
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Head Office : |
6, |
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Tel. No.: |
91-22-22301801 |
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Fax No.: |
91-22-22833913 |
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Administrative
Office : |
Great Eastern
Chambers, 6th Flore, Sector 11, CBD – Belapur, Navi Mumbai – 400 614,
Maharashtra, India |
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Tel. No.: |
91-22-27574276 /
27574336 / 27574991 / 30973100 |
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Fax No.: |
91-22-27574277 |
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Email : |
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Plant Location
: |
Taloja Mahad Panoli Tel
No. : 91-2646-302 100
R and D Centre, Pune ·
MIDC, Taloja, District Raigad, Maharashtra ·
MIDC, Mahad, District Raigad, ·
GIDC, Panoli, District Bharuch, ·
KIADB, Jigani, ·
Bannerghatta, ·
MIDC, Dombivli, |
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Overseas
Office |
Located at ·
·
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DIRECTORS
As on 31.03.2012
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Name : |
Mr. Baba N. Kalyani |
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Designation : |
Chairman and Non Executive Director |
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Name : |
Mr. Jai Hiremath |
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Designation : |
Vice Chairman and Managing Director |
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Name : |
Mr. Sameer J. Hiremath |
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Designation : |
Deputy Managing Director |
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Name : |
Mr. Prakash V. Mehta |
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Designation : |
Independent, Non-Executive Director |
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Name : |
Mr. Shivkumar M. Kheny |
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Designation : |
Independent, Non-Executive Director |
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Name : |
Mr. Kannan K. Unni |
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Designation : |
Independent, Non-Executive Director |
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Name : |
Dr. Peter Pollak |
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Designation : |
Independent, Non-Executive Director |
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Name : |
Mr. Amit Kalyani |
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Designation : |
Alternate Director to Peter Pollak |
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Name : |
Mr. Wolfgang Welter |
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Designation : |
Director |
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Name : |
Mrs. Sugandha J. Hiremath |
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Designation : |
Non-Executive Director |
KEY EXECUTIVES
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Name : |
Mr. Sham. V. Wahalekar |
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Designation : |
Sr.VP. Finance and Company Secretary |
SHAREHOLDING PATTERN
As on 31.12.2012
|
Category of Shareholders |
No. of Shares |
Percentage of
Holding |
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(A) Shareholding of Promoter and Promoter Group |
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1591430 |
9.68 |
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9622707 |
58.53 |
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100000 |
0.61 |
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100000 |
0.61 |
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11314137 |
68.82 |
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Total shareholding of Promoter and Promoter Group (A) |
11314137 |
68.82 |
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(B) Public Shareholding |
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|
899686 |
5.47 |
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|
20100 |
0.12 |
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30477 |
0.19 |
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950263 |
5.78 |
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254987 |
1.55 |
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1406328 |
8.55 |
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250733 |
1.53 |
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2263652 |
13.77 |
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22060 |
0.13 |
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777324 |
4.73 |
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24310 |
0.15 |
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1360000 |
8.27 |
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79958 |
0.49 |
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4175700 |
25.40 |
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Total Public shareholding (B) |
5125963 |
31.18 |
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Total (A)+(B) |
16440100 |
100.00 |
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(C) Shares held by Custodians and against which Depository
Receipts have been issued |
0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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0 |
0.00 |
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Total (A)+(B)+(C) |
16440100 |
0.00 |
BUSINESS DETAILS
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Line of Business : |
The Company is engaged in the manufacturing of various chemical
intermediates, specialty chemicals, Active pharma ingredients and Contracts
Research activities. |
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Products : |
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PRODUCTION STATUS AS ON 31.03.2012
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Particulars |
Unit |
Actual
Production |
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(Intermediate for dyes, pesticides and pharmaceuticals) |
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1668.24 |
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Electricity |
KWH |
10.800 |
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Furnace oil |
Ltrs. |
2.16 |
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LSHS / LDO /GAS |
Ltrs. |
0.46 |
GENERAL INFORMATION
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No. of Employees : |
Information declined by the management. |
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Bankers : |
·
Axis Bank Limited ·
Bank of Baroda ·
Barclays Bank PLC ·
Central Bank of India ·
CITI Bank N.A. ·
DBS Bank Limited ·
Export Import Bank of India ·
HDFC Bank Limited ·
International Finance Corporation ·
ICICI Bank Limited ·
IDBI Bank Limited ·
ING Vysya Bank ·
Kotak Mahindra Bank Limited ·
Laxmi Vilas Bank ·
State Bank of India ·
State Bank of Hyderabad ·
Standard Chartered Bank ·
Union Bank of India ·
Yes Bank Limited |
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Banking
Relations : |
-- |
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Auditors : |
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Name : |
BSR and Company Chartered Accountants |
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Subsidiaries : |
·
Hikal
International B.V. (“HIBV”) ·
Acoris
Research Limited (“ARL”) |
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Enterprises over
which key management personnel and their relatives exercise significant
influence : |
·
Decent
Electronics Private Limited (“DEPL”) ·
Marigold
Investments Private Limited ·
Iris
Investments Private Limited ·
Karad
Engineering Consultancy Private limited (“KECPL”) ·
Ekdant
Investments Private limited (“EIPL”) ·
Rameshwar
Investment Private Limited (“RIPL”) ·
Badrinath
Investment Private Limited (“BIPL”) ·
Rushabh
Capital Services Private Limited (“RCSPL”) |
CAPITAL STRUCTURE
As on 31.03.2012
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
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|
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|
25000000 |
Equity Share |
Rs.10/- Each |
Rs.250.000
Millions |
|
5000000 |
Cumulative
Redeemable Preference shares |
Rs.100/- Each |
Rs.500.000
Millions |
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Total |
|
Rs.750.000
Millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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16440100 |
Equity Shares |
Rs.10/- Each |
Rs.164.401 Millions |
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a. Reconciliation of
the shares outstanding at the beginning and at the end of the reporting period
|
|
March 31, 2012 |
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No. millions |
Rs. In Millions |
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At the beginning of the year |
16.44 |
164.40 |
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Outstanding at the end of the year |
16.44 |
164.40 |
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b. Terms/rights
attached to equity shares
The company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the Notes to Financial Statements For the year ended March 31, 2012 (Currency: Indian Rupees in Millions) 63 Meeting.
During the year ended March 31, 2012 the amount of per share dividend recognized as distributions to equity shareholders was Rs.6/- (March 31, 2011: Rs.6/-).
In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of
equity shares held by the shareholders.
c. Details of
shareholders holding more than 5% shares in the company
|
|
March 31, 2012 |
|
|
Equity shares of
Rs.10 each fully paid |
No. millions |
Class |
|
Kalyani Investment Company Limited |
5.16 |
31.36 |
|
Shri Badrinath Investment Private Limited |
2.65 |
16.15 |
|
Shri Rameshwara Investment Private Limited |
1.31 |
7.96 |
|
International Finance Corporation |
1.36 |
8.27 |
|
Sugandha J Hiremath |
1.32 |
8.02 |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
SHAREHOLDERS FUNDS |
|
|
|
|
|
1] Share Capital |
164.400 |
164.400 |
164.401 |
|
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
|
|
3] Reserves & Surplus |
4433.780 |
4052.410 |
3826.090 |
|
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4598.180 |
4216.810 |
3990.491 |
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|
LOAN FUNDS |
|
|
|
|
|
1] Secured Loans |
4064.960 |
4132.240 |
3965.550 |
|
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2] Unsecured Loans |
258.480 |
107.040 |
660.570 |
|
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TOTAL BORROWING |
4323.440 |
4239.280 |
4626.120 |
|
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DEFERRED TAX LIABILITIES |
86.710 |
26.800 |
12.910 |
|
|
|
|
|
|
|
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TOTAL |
9008.330 |
8482.890 |
8629.521 |
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APPLICATION OF FUNDS |
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|
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|
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FIXED ASSETS [Net Block] |
5783.960 |
5755.320 |
5623.730 |
|
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Capital work-in-progress |
747.560 |
512.130 |
353.470 |
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INVESTMENT |
181.670 |
181.670 |
181.671 |
|
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
|
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|
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CURRENT ASSETS, LOANS & ADVANCES |
|
|
|
|
|
|
Inventories |
1918.530
|
1715.060
|
1828.340
|
|
|
Sundry Debtors |
987.340
|
852.210
|
986.680
|
|
|
Cash & Bank Balances |
59.190
|
88.030
|
124.690
|
|
|
Other Current Assets |
3.130
|
2.310
|
0.000
|
|
|
Loans & Advances |
1722.540
|
1437.980
|
1152.440
|
|
Total
Current Assets |
4690.730
|
4095.590
|
4092.150
|
|
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Less : CURRENT LIABILITIES & PROVISIONS |
|
|
|
|
|
|
Sundry Creditors |
1139.260 |
819.940 |
963.230 |
|
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Other Current Liabilities |
1062.460
|
1047.780
|
299.280
|
|
|
Provisions |
193.870
|
194.100
|
360.890
|
|
Total
Current Liabilities |
2395.590
|
2061.820
|
1623.400
|
|
|
Net Current Assets |
2295.140
|
2033.770
|
2468.750
|
|
|
|
|
|
|
|
|
MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
1.900 |
|
|
|
|
|
|
|
|
TOTAL |
9008.330 |
8482.890 |
8629.521 |
|
PROFIT & LOSS
ACCOUNT
|
|
PARTICULARS |
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
|
|
SALES |
|
|
|
|
|
|
|
Income |
6942.350 |
4935.110 |
5360.030 |
|
|
|
Other Income |
49.570 |
59.580 |
17.870 |
|
|
|
TOTAL (A) |
6991.920 |
4994.690 |
5377.900 |
|
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
|
|
Cost of materials consumed |
2945.770 |
2246.580 |
|
|
|
|
Purchases of Stock-in-trade |
0.000 |
37.970 |
|
|
|
|
Changes in inventories of finished goods and work-in-progress |
161.500 |
(170.740) |
4135.090 |
|
|
|
Employee benefits expense |
556.860 |
526.950 |
|
|
|
|
Other expenses |
1444.040 |
1071.310 |
|
|
|
|
Exceptional Items |
218.490 |
31.540 |
|
|
|
|
TOTAL (B) |
5326.660 |
3743.610 |
4135.090 |
|
|
|
|
|
|
|
|
Less |
PROFIT
BEFORE INTEREST, TAX, DEPRECIATION AND AMORTISATION (A-B) (C) |
1665.260 |
1251.080 |
1242.810 |
|
|
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
640.320 |
412.380 |
348.300 |
|
|
|
|
|
|
|
|
|
|
PROFIT
BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1024.940 |
838.700 |
894.510 |
|
|
|
|
|
|
|
|
|
Less/ Add |
DEPRECIATION/
AMORTISATION (F) |
424.230 |
381.880 |
329.590 |
|
|
|
|
|
|
|
|
|
|
PROFIT BEFORE
TAX (E-F) (G) |
600.710 |
456.820 |
564.920 |
|
|
|
|
|
|
|
|
|
Less |
TAX (H) |
59.910 |
13.890 |
(36.730) |
|
|
|
|
|
|
|
|
|
|
PROFIT AFTER TAX
(G-H) (I) |
540.800 |
442.930 |
601.650 |
|
|
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
214.140 |
278.870 |
1068.440 |
|
|
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
|
|
Transfer to General Reserve |
100.000 |
100.000 |
125.000 |
|
|
|
Interim Dividend on Equity Shares |
0.000 |
49.320 |
65.760 |
|
|
|
Proposed Dividend on Equity Shares |
98.64 |
49.320 |
65.760 |
|
|
|
Dividend Tax |
16.00 |
15.500 |
22.350 |
|
|
BALANCE CARRIED
TO THE B/S |
214.640 |
214.140 |
278.87 |
|
|
|
|
|
|
|
|
|
|
EARNINGS IN
FOREIGN CURRENCY |
|
|
|
|
|
|
|
Export Earnings |
5572.000 |
3463.030 |
4527.810 |
|
|
TOTAL EARNINGS |
5572.000 |
3463.030 |
4527.810 |
|
|
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
|
|
Raw Materials |
1698.750 |
1171.560 |
952.860 |
|
|
|
Capital Goods |
35.590 |
9.050 |
35.110 |
|
|
|
Stores & Spares |
2.630 |
3.490 |
3.580 |
|
|
TOTAL IMPORTS |
1736.970 |
1184.100 |
991.550 |
|
|
|
|
|
|
|
|
|
|
Earnings Per
Share (Rs.) |
|
|
|
|
|
|
Basic |
32.90 |
26.94 |
36.60 |
|
|
|
Diluted |
32.90 |
26.37 |
35.22 |
|
QUARTERLY RESULTS
|
PARTICULARS |
30.06.2012 |
30.09.2012 |
31.12.2012 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
|
Net Sales |
1652.600 |
1526.000 |
1529.200 |
|
Total Expenditure |
1354.400 |
1309.400 |
1145.500 |
|
PBIDT (Excl OI) |
298.200 |
216.600 |
383.700 |
|
Other Income |
3.300 |
51.000 |
2.000 |
|
Operating Profit |
301.500 |
267.600 |
385.700 |
|
Interest |
127.700 |
125.800 |
134.000 |
|
Exceptional Items |
0.000 |
0.000 |
0.000 |
|
PBDT |
173.800 |
141.800 |
251.700 |
|
Depreciation |
117.800 |
119.600 |
124.400 |
|
Profit Before Tax |
56.000 |
22.200 |
127.300 |
|
Tax |
5.000 |
1.000 |
37.000 |
|
Provisions and contingencies |
0.000 |
0.000 |
0.000 |
|
Profit After Tax |
51.000 |
21.200 |
90.300 |
|
Extraordinary Items |
0.000 |
0.000 |
0.000 |
|
Prior Period Expenses |
0.000 |
0.000 |
0.000 |
|
Other Adjustments |
0.000 |
0.000 |
0.000 |
|
Net
Profit |
51.000 |
21.200 |
90.300 |
KEY RATIOS
|
PARTICULARS |
|
31.03.2012 |
31.03.2011 |
31.03.2010 |
|
PAT / Total
Income |
(%) |
7.73
|
8.86 |
11.18 |
|
|
|
|
|
|
|
Net Profit Margin (PBT/Sales) |
(%) |
8.65
|
9.25 |
10.54
|
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
5.73
|
4.63 |
5.81
|
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.13
|
0.11 |
0.14
|
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.94
|
1.01 |
1.16
|
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
1.95
|
1.98 |
2.52
|
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check List by Info
Agents |
Available in Report (Yes / No) |
|
1] |
Year of Establishment |
Yes |
|
2] |
Locality of the firm |
Yes |
|
3] |
Constitutions of the firm |
Yes |
|
4] |
Premises details |
No |
|
5] |
Type of Business |
Yes |
|
6] |
Line of Business |
Yes |
|
7] |
Promoter's background |
Yes |
|
8] |
No. of employees |
Yes |
|
9] |
Name of person contacted |
Yes |
|
10] |
Designation of contact person |
Yes |
|
11] |
Turnover of firm for last three years |
Yes |
|
12] |
Profitability for last three years |
Yes |
|
13] |
Reasons for variation <> 20% |
---------------------- |
|
14] |
Estimation for coming financial year |
No |
|
15] |
Capital in the business |
Yes |
|
16] |
Details of sister concerns |
Yes |
|
17] |
Major suppliers |
No |
|
18] |
Major customers |
No |
|
19] |
Payments terms |
No |
|
20] |
Export / Import details (if applicable) |
No |
|
21] |
Market information |
---------------------- |
|
22] |
Litigations that the firm / promoter involved in |
---------------------- |
|
23] |
Banking Details |
Yes |
|
24] |
Banking facility details |
Yes |
|
25] |
Conduct of the banking account |
---------------------- |
|
26] |
Buyer visit details |
---------------------- |
|
27] |
Financials, if provided |
Yes |
|
28] |
Incorporation details, if applicable |
Yes |
|
29] |
Last accounts filed at ROC |
Yes |
|
30] |
Major Shareholders, if available |
Yes |
|
31] |
Date of Birth of Proprietor/Partner/Director, if available |
No |
|
32] |
PAN of Proprietor/Partner/Director, if available |
No |
|
33] |
Voter ID No of Proprietor/Partner/Director, if available |
No |
|
34] |
External Agency Rating, if available |
Yes |
FINANCIAL RESULTS:
2011-12 was a successful year for subject, with an overall sales growth
of 41%. Total revenues stood at 6942.000 millions versus Rs. 4935.000 millions
from the year before. The company has achieved a net profit of Rs.541.000
millions compared to Rs.443.000 millions in the previous year, an increase of
22%. The increase in profit can be attributed to the larger sales volumes of
existing products and operational efficiencies in the manufacturing plants.
EBIDTA increased by 47% to Rs. 1884.000 millions from Rs.1282.000 millions. The
shareholders' funds of the company increased from Rs.4217.000 millions to Rs. 4598.000
millions, an increase of 9%. The long-term debt has decreased by Rs.57.000
millions despite the revaluation of their dollar denominated loans due to the
depreciation of the Rupee versus the US dollar. The debt to equity ratio has improved
from 0.99 to 0.92.
In 2011-12, the revenues of the Crop Protection division increased
substantially by 42% to Rs. 2465.000 millions as compared to Rs.1734.000
millions from the year before. The increase in sales was primarily due to the
larger off take of products by their customers. Their new products which were
in the R and D stage are expected to be commercialized in the next financial
year leading to additional growth in the years to come.
Their Pharmaceutical division recorded its highest turnover at Rs. 4477.000
millions as compared to Rs. 3201.000 millions in the previous year, a growth of
40%. Much of the growth can be attributed to the increase in sales of their
existing product portfolio as they captured a larger market share and added new
customers.
One of their leading API products in the Pharmaceutical division
experienced higher than expected volumes from existing customers as well as
from newer indications that have been approved for the product. They received clearance
to manufacture two contract manufacturing products which are expected to grow
in volume over the next few years. This will further improve the capacity
utilization at their Panoli and Jigani facilities considerably.
The contract manufacturing of these molecules will add stable revenues
and margins for the division over the next few years.
The construction of their newest multipurpose API plant which is capable
of manufacturing 4 APIs simultaneously is underway at their USFDA facility in
Bangalore. This plant is expected to be ready in 2013 and will cater to the new
products under development at Hikal R and D and contract manufacturing
requirements of their existing customers.
EXPORTS
Exports for the year increased to Rs. 5,572 million (80% of total sales) from Rs. 3,463 million (70% of total sales) in the previous year; an increase of 61% versus the last fiscal year. It is due to the increase in overall revenues and the addition of customers in different geographies as compared to last year.
OPERATIONS
Crop Protection
Division:
Their Crop Protection division revenues are primarily driven from contract manufacturing products for multinational innovator companies. The past year saw a volume increase of a fungicide produced for a major European multinational company. An intermediate for the same customer produced at their Mahad facility has grown in volume and based on future forecasts given by the customer, they expect it to grow further.
They have added two customers for commercial manufacturing which is expected to commence next year. The lab trials for these molecules have been completed. They worked on multiple late stage research projects for Japanese Crop Protection companies which are expected to fructify over the next two years. It will lead to additional revenues in the Crop Protection division. They are currently working on an intermediate to be manufactured at their Mahad facility for the Japanese market. It is a solvent for the electronic chemical market with extremely stringent quality requirements. The success of this project along with others has opened up a new market in the fast growing specialty chemicals field for the company.
They have invested incrementally in debottlenecking their plants at Taloja and Mahad to cater to the additional
demand of their customers. Going forward, they are focusing on maximum capacity utilization at their manufacturing facilities which will improve their profitability. They have successfully completed Safety, Health and Environment audits in new markets for this new generation product.
Pharmaceutical
Division:
One of their leading API products in the Pharmaceutical division experienced higher than expected volumes from existing customers as well as from newer indications that have been approved for the product. As one of the largest suppliers of this product in the world, their R and D has worked tirelessly to improve the process and reduce the production cost of this product in the face of increased competition and declining market prices.
They received final clearances from a European innovator multinational company to commence commercial production of multiple products at their Panoli and Jigani facilities. They had built dedicated facilities for the production of these molecules which are expected to be commercialized in the second quarter of the next financial year. These are both large volume products and are expected to grow in volume over the next few years. This will further improve the capacity utilization of both sites considerably.
Commercial quantities of an API product that they had under development has been successfully manufactured and approved by an innovator company in the US. This product will be contract manufactured at their USFDA plant in Bangalore and supplies are expected to start in the second quarter of the next financial year.
Validation trials of two new APIs under development have been completed. They expect commercial quantities to begin in the next financial year. These products are in the process of being approved by their customers as they go off patent.
Construction of their newest multipurpose API plant which is capable of manufacturing 4 APIs simultaneously is underway at their USFDA facility in Bangalore. This plant is expected to be ready in 2013 and will cater to the new
products and contract manufacturing requirements of their existing Customers.
On the regulatory front, they had two milestones. Their Bangalore USFDA facility passed its third audit successfully receiving zero 483s (zero regulatory deviances). It is an accomplishment for the company from a regulatory, quality, environment, and health and safety perspective. It bears testimony to the high standards that they uphold. As part of the company's initiative to become an integral component of the global supply chain, they were audited and certified by the globally recognized voluntary supply chain consortium, Rx360.They are the first Indian life sciences company to be successfully audited by this organization. A significant number of leading multinational innovator, biotech and chemical companies are members of this supply chain which is a clear differentiator to become a supplier to these companies.
AWARDS
During the year, the company received the following awards:
3rd USFDA audit was completed successfully at Bangalore
‘Responsible Care’ certification – First Indian Life Sciences Company
Hikal is the first Indian company to receive the Rx-360 certification, a global supply chain consortium
Hikal Acoris has won the 2011 Bloomberg UTV CXO award for implementation of Green IT
MANAGEMENT
DISCUSSION AND ANALYSIS REPORT
PHARMACEUTICAL MARKET
In 2011, the global pharmaceutical market grew by 4.5% to reach approximately US$ 900 billion registering growth of US$ 45 billion over 2010. Currently, the pharmaceutical industry is dominated by the US, which accounted for about 26% of global sales in 2011, followed by the EU, accounting for nearly 15%, and Japan for 12%. Together, these three markets represent nearly 55% of the global industry. The top five pharmaceutical markets in the world are the US, Japan, Germany, France and China. Demand for medicines and the world pharmaceutical markets grew in 2011; competition and price erosion of products made it a challenging marketplace for pharmaceutical companies. The global pharmaceutical industry is projected to grow at a CAGR of around 6.5% during 2012-2013. The growth will be driven by the prevalence of diseases worldwide, and rising per capita income of consumers. Sales of generic drugs will emerge as the most prominent segment of the pharmaceutical market during the forecast period, indicating sizeable opportunities for generics and contract manufacturing companies. Drugs with sales of more than US$ 30 billion are expected to face generic competition as in the case of Lipitor in 2011 which accounted for US$ 11 billion in sales. Governments will continue to reduce drug costs. Going forward, it will also be crucial for understanding how healthcare reform efforts in major markets develop and shape up amid the foreseen macroeconomic rebound. Industry returns are under pressure from declining R and D productivity and intensifying pricing pressures, particularly in established markets which are facing rising healthcare costs. For pharmaceutical manufacturers such as Hikal, there is a focus on achieving differentiated value through cost advantages and efficiency both in terms of R and D development and commercial manufacturing which will be instrumental to manage this dynamic market.
PHARMACEUTICALS –
OPERATIONAL PERFORMANCE
Their pharmaceutical division recorded its highest turnover at Rs. 4,477 million as compared to ` 3,201 million in the previous year, a growth of 40%. Much of the growth can be attributed to the increase in sales of their existing product portfolio as they captured a larger market share and added new customers. One of their leading API products in the pharmaceutical division experienced higher than expected volumes from existing customers as well as from newer indications that have been approved for the product. As one of the world's largest suppliers of this product, their R and D has worked tirelessly to improve the process and reduce the production cost in the face of increased competition and declining market prices. They continue to improve the throughput in the plant in order to stay ahead of the competition while maintaining the quality and delivery timelines. They expect the product to stabilize in volumes over the next few years.
They received final clearances from a European innovator biopharmaceutical company to start commercial production of multiple products at their Panoli and Jigani facilities. They had built dedicated facilities for the production of these molecules which are expected to be commercialized in the third quarter of the next financial year. These are both large volume products and are expected to grow over the coming years. It will further improve the capacity utilization of both sites significantly. The contract manufacturing of these molecules will add stable revenues and margins for the division over the next few years. Additionally, it will create new business opportunities for newer molecules in the future.
Commercial quantities of an API product that they had under development have been successfully manufactured and approved by an innovator company in the US. This product will be contract manufactured at their USFDA plant in Bangalore and supplies are expected to start in the second quarter of the next financial year.
Some of their legacy lifecycle extension molecules that were manufactured a few years ago have been re-introduced into the pipeline at the request of their customers. These products are increasing in volumes and prices are more or less stable. As there are fewer competitors, they expect these molecules to diversify the current product pipeline while serving as a business development tool for adding newer customers. Validation trials of two new APIs under development have been completed. They expect commercial quantities to begin in the next financial year. These products are in the process of being approved by their customers as they go off patent. Construction of their newest multipurpose API plant which is capable of manufacturing 4 APIs simultaneously is under way at their USFDA site in Bangalore. This plant is expected to be ready in 2013 and will cater to the new products under development at Hikal R and D and contract manufacturing requirements of their existing customers.
On the regulatory front, they achieved two significant milestones. Their Bangalore USFDA facility passed its third audit successfully receiving zero 483s (zero regulatory deviances). It is an accomplishment for the company from a regulatory, quality, environment, and health and safety perspective. It bears testimony to the high standards that they uphold. As part of the company's initiative to become an integral component of the global supply chain, they were audited and certified by the globally recognized voluntary supply chain consortium, Rx360. They are the first Indian life sciences company to be successfully audited by this organization. A large number of leading multinational innovator, biotech and chemical companies are members of this supply chain which is a clear differentiator for us to become a supplier to these companies.
Overall, the pharmaceutical division has recorded substantial growth this year. While the fundamentals of the industry remain strong, they expect growth to remain stable over the next few years. Globally, rising healthcare costs and continued austerity measures by local governments have put pressure on prices of medicines. From a regulatory perspective, global requirements are becoming more stringent. Although, this is a challenging scenario, they see it as an opportunity to showcase their technical abilities and world-class manufacturing capabilities. As they continue to expand their pipeline with newer molecules under development, they are extending their existing relationships to garner additional business on the contract manufacturing and generics side. They expect the growth in the pharmaceutical division to continue in the future.
CROP PROTECTION
MARKET
In 2011, the global crop protection market recorded significant growth. The market for conventional crop protection products (excluding sales of herbicide tolerant and insect resistant seed) is estimated to have increased by 14.9% to reach US$ 44 billion and the overall value of the agrochemical market for the use of products in the non-crop sector is estimated to have grown by 7.0% to US$ 6.2 billion. As a whole, the market increased 13.8% over 2010 for an estimated value of approximately US$ 50 billion.
Demand for crop and non crop chemicals continued to rise considerably. This coupled with higher prices for agricultural commodities, high oil prices and adverse weather conditions such as the drought in Mexico, Northern China and Vietnam, dry weather in the US towards the end of the season and the tsunami affecting the Japanese rice market brought about a significant improvement in demand. It was reflected in increased investment in seeds and crop protection products.
In 2011, crop planting benefitted for improving crop commodity prices but was hampered due to adverse weather conditions. The main factor behind the positive forecasts for crop protection market going forward is stronger demand in developing nations such as India, China and Brazil. The economic and population growth as well as dietary changes are expected to increase demand and prices substantially. The non crop sector which recorded growth of 7% in 2011 was driven more by economic development, product pric4: and volume. The driver of growth in 2011 was attributed to markets in Latin America and Asia. The future of the Crop Protection market is positive from a demand and price perspective. With rising incomes and demand in the BRIC countries and increased productivity in farmland, they expect the next few years to have a positive effect on Hikal's product portfolio which will result in increased revenues for the company's Crop Protection division.
CROP PROTECTION -
OPERATIONAL PERFORMANCE
In 2011-12, the revenues of the Crop Protection division increased substantially by 42% to 2,465 million as compared to Rs.1,734 million in the year before. The increase in sales was primarily due to the larger off take of products by their customers. Their new products which were in the R and D stages are expected to be commercialized in the next financial year leading to additional growth in the years to come.
Their Crop Protection division revenues are primarily driven from contract manufacturing products for multinational innovator companies. The past year saw a volume increase of a fungicide produced for a major European multinational company. An intermediate for the same customer produced at their Mahad site has grown in volume and based on future forecasts of the customer, they expect it to grow further. Thiabendazole (TBZ), a fungicide for which they have a dedicated manufacturing facility at Taloja, is sold to Syngenta's crop protection division. The volume has been steadily increasing over the past few years and they expect it to further increase next year which will considerably improve the plant capacity utilization. This fungicide has additional uses in animal health which is also a growing market for the crop protection division.
Their product 'Diuron' which is an herbicide manufactured at their Mahad facility is mainly used to control weeds in agriculture and irrigation channels. Diuron is also used in non crop segments such as the fast growing paint industry as an antifungal agent. The additional usage of this product helps grow the market and demand both in India as well as globally.
The on-patent molecule that they are contract manufacturing for a European multinational innovator customer has grown substantially over last year's volume. Based on their customer's forecast, they expect that this molecule will further grow as their customer's registration gets approved in new markets for this new generation product. This year, their new business development in the Japanese market made significant inroads. They are already supplying large commercial quantities of an insecticide to a leading Japanese company from their Panoli crop protection plant. They have added two customers for commercial manufacturing which is expected to start next year. The lab trials for these molecules have been completed. They worked on multiple late stage research projects for Japanese Crop Protection companies which are expected to fructify over the next two years. It will lead to additional revenues in the Crop Protection division. They are currently working on an intermediate to be manufactured at their Mahad site for the Japanese market. This is a solvent for the electronic chemical market with extremely stringent quality requirements. The success of this project along with others has opened up a new market in the fast growing speciality chemicals field for the company.
They have invested incrementally in de-bottlenecking their plants at Taloja and Mahad to cater to the additional demand of their customers. Going forward, they are focusing on maximum capacity utilization at their manufacturing sites which will improve their profitability. They have successfully completed Safety, Health and Environment audits with their multinational customers who have reinforced their high standards and quality systems. It should lead to additional business in the years to come. In addition, they have invested in increasing the capacity of their R and D personnel and equipment at their Taloja plant which focuses on process improvements and new product development.
They expect long-term contracts with their innovator customers to yield constant streams of revenue. Their new products under development will add to more business opportunities as well as the acquisition of customers in new geographies.
CONTRACT RESEARCH AND
MANUFACTURING
The contract research and manufacturing services (CRAMS) market in India has been seeing robust growth over the past five years and is expected to maintain its upward growth trajectory. This growth is being reinforced by new opportunities as companies are looking to reduce costs and serve emerging markets. Globally, Asia Pacific is the fastest growing CRAMS market, with India and China as the major hubs. In India, pharmaceutical companies have adapted well to the changing industry scenario, speeding up the deliverables and timelines when it comes to research and development. The highly skilled labor pool is also ramping up the prospects for the CRAMS market in India. Fast-approaching patent expiries have made pharmaceutical companies speed up the need to explore more research collaborations with Indian companies.
The CRAMS sector in India is expected to almost double to US$ 7.6 billion in 2012, up from US$ 3.8 billion in 2010. Contract manufacturing accounted for US$ 2.3 billion worth of sales5. The segment will grow at 41.4% CAGR during fiscal years 2010-12. In contrast, the global outsourcing market is expected to grow at a far lower 12.6% CAGR.
Sourcing products and services from Indian companies will also reduce the expenses by more than 50% for the global pharmaceutical companies6. The forecast for the Indian CRAMS sector is healthy on the back of custom manufacturing and increasing presence in contract research.
Custom or contract manufacturing will be the leader of the segment in outsourcing as the value of contracts is higher than those in research. Skilled manpower coupled with inherent cost advantages, will enable India to capture a significant chunk of the US$ 67 billion global pharmaceutical outsourcing market.
In 2010, global contract manufacturing was about 64% of the total CRAMS market. The global contract research market was US$ 25 billion with a CAGR of 19% over 2007-10. For the same period, the Indian contract research industry grew to around US$ 1.5 billion at a CAGR of 65% taking into account a much smaller base. There is a huge scope for growth as only around 20% of global pharmaceutical R and D expenditure is being outsourced.
As Big Pharma look for measures to cut costs and maintain their profitability, they are expected to outsource activities to the extent of US$ 85 billion by fiscal year 2012. This is due to the loss of patents and pricing pressure from generic medicines in the developed countries. As drugs worth US$ 90 billion go off-patent in the next 3-4 years, there will be fewer product launches in relation to R and D spends and these new launches cannot fill the revenue loss from blockbuster drugs that go off patent.
Hikal offers the right combination of capabilities and cost arbitrage for companies that are looking at reducing costs and improve productivity. The company's strength in chemistry-based services differentiates itself in the CRAMS market. Their customers are looking to expand their relationships both in research and manufacturing. As regulations become stricter and barriers to entry stronger, it is becoming more and more challenging to add new customers and develop long-term relationships. Their existing customers range from fine chemical to pharmaceutical and biotech companies. Their commitment to acting responsibly along with adhering to stringent timelines and quality deliverables has reinforced trust with their customers. They are uniquely positioned in the value chain to offer services both in R and D as well as manufacturing to global life sciences companies as can be seen in Figure 5. They see their contract manufacturing and research business as a growth driver of future revenue.
CONTRACT RESEARCH and
DEVELOPMENT - OPERATIONAL PERFORMANCE
This
year, the global pharmaceutical market was severely affected by price pressures
with the onslaught of generics, government reimbursement policies for medicines
and economic instability. Global companies are changing their focus from
diminishing blockbuster drugs to penetrating emerging markets and their growing
middle class for future growth, collaborating with biotech companies and
licensing in late stage molecules to fill their pipelines.
In
continuation with their efforts to create a healthy pipeline for Hikal, their R
and D team at Bangalore concluded several new projects successfully during the
year. Novel manufacturing processes were developed for 2 APIs, which were
validated and the corresponding DMFs are in the process of being filed. One of
these APIs is aimed at supporting a World Health Organization (WHO) initiative
to treat Lymphatic Filariasis. In contract manufacturing, technology transfers
by their customers were successfully transferred to their production facilities
and small quantities were validated. Efficient manufacturing processes were
also developed for several pharmaceutical advanced intermediates and are being
transferred to the respective production units.
They are leveraging their capabilities to implement green processes for the molecules under development. They use bio catalysis to minimize the use of chemicals in their manufacturing processes. Enzyme catalyzed transformation help us develop environment-friendly processes for their new product pipeline. In order to ensure that their current manufacturing processes are environment-friendly and sustainable, consumption of organic solvents was reduced and in certain cases eliminated. Effluent streams were processed to recover valuable products that can be recycled. These initiatives have been transferred and implemented in commercial production. It is part of the company initiative to become a sustainable business. Capacity building in the area of scale up has also been undertaken and new equipment and reactors have been added to R and D labs. All these initiatives and actions are expected to create new business opportunities and business leads in the near future.
As part of their integration efforts, they have demerged Acoris Research, formerly a 100% subsidiary, into a division of Hikal. It will enable a smoother transition from contract R and D to scale up and manufacturing at a Hikal commercial site.
Acoris as a provider of early stage support services to the life sciences industry has recorded a 61% increase in revenues over the last year to ?153 million.
Acoris has again shown significant growth in the year and has added a number of major multinational clients from Western Europe and Japan. Acoris has completed over fifty laboratory scale projects and five major pilot plant development projects on behalf of clients during 2011-12. There is a strong pipeline of projects in the coming year. These projects range from Phase I to Phase III in the pharmaceutical value chain. The success of these projects depends on the regulatory approvals from USFDA. A majority of these projects are from repeat customers which highlights the successful track record of the company.
The Japanese market has been a lead source of enquiries and projects for Acoris. They have signed contracts for process development, process intensification and scale up with several companies for new chemical entities. Their strategy to offer a full development and scale up service to innovator companies, generic and biotech companies is leading to new possibilities for long-term contract manufacturing opportunities for the Hikal group. These development contracts will translate into revenues in the years to come.
FUTURE OUTLOOK
India as a manufacturing and research service industry is driven by cost competitiveness, robust chemistry capabilities supported by a talent pool of skilled professionals and R and D infrastructure. India's R and D policy has been focused on the development of generics for western markets, which involved developing non-infringing process and cost-effective routes. As an industry, they have been able to leverage this capability in research chemistry, especially in the areas of analytical chemistry and compound synthesis.
Hikal has developed robust capabilities in process chemistry, analytical chemistry, process development and scale up capabilities for clinical and commercial APIs for the pharmaceutical industry and AIs for the crop protection industry. They offer significant cost arbitrage in end-to-end research and development with potential high double digit savings as compared to the US, Europe and Japan.
As a company, they are focusing on world-class productivity, increased collaboration, stronger customer orientation and operational efficiency with a competitive cost base. Their integrated R and D and manufacturing coupled with world-class infrastructure, quality project management systems, and highly qualified staff positions us among the leading contract research and manufacturing organizations globally.
Cautionary Note
The statements forming part of the Directors' report may contain certain forward looking remarks within the meaning of applicable securities laws and regulations. Many factors could cause the actual results, performances or achievements of the company to be materially different from any future results, performances or achievements that may be expressed or implied by such forward looking statements.
Sources
1 IMS Health, Market Prognosis, December 2011
2 RNCOS Global Pharmaceutical Market Forecast to 2012
3 IMAP Pharmaceuticals and Biotech Industry Global Report — 2011
4. Phillips McDougall Industry Overview 2011, March 2012
5. ICRA Pharmaceuticals Report March 2012
6. ICRA Pharmaceuticals Report March 2012
7. ICRA Pharmaceuticals Report March 2012
8. OPPI and EandY Report, Taking wings, coming of age of the Indian pharmaceutical outsourcing industry 2009
BACKGROUND
Subject was incorporated as a public limited Company on 08 July 1988 having its registered office at 717/718, Maker Chamber V, Nariman Point, Mumbai 21.
The Company is engaged in the manufacturing of various chemical intermediates, specialty chemicals, Active
pharma ingredients and Contracts Research activities.
The Company is operating in the crop protection and pharmaceuticals space.
UNSECURED LOANS
Rs. In Millions
|
Particular |
31.03.2012 (Rs. in Millions) |
31.03.2011 (Rs. in Millions) |
||||||||||||||||
|
Term loans from banks |
50.000 |
0.000 |
||||||||||||||||
|
Deferred sales
tax liability |
4.980 |
7.040 |
||||||||||||||||
|
Loans repayable on demand Inter corporate deposits |
43.50 |
0.000 |
||||||||||||||||
|
From related parties |
160.000 |
0.000 |
||||||||||||||||
|
From others |
0.000 |
100.000 |
||||||||||||||||
|
Total |
258.480 |
107.040 |
||||||||||||||||
|
||||||||||||||||||
UNAUDITED FINANCIAL
RESULTS FOR THE QUARTER AND NINE MONTHS ENDED DECEMBER 31, 2012
Rs. In Millions
|
Particular |
Unaudited |
Quarter |
Nine Months Ended |
|
|
2012 |
2012 |
2012 |
|
Sales / income from operations |
1547.700 |
1535.800 |
4749.300 |
|
Less: Excise duty |
18.500 |
9.800 |
41.600 |
|
Net sales / income
from operations |
1529.200 |
1526.000 |
4707.700 |
|
Total expenditure |
|
|
|
|
a) Cost of materials and utilities consumed |
871.500 |
869.300 |
2704.600 |
|
b) Purchases of stock- in- trade |
- |
- |
- |
|
c) Change in inventories of finished goods and work in progress |
(107.000) |
(25.000) |
(214.800) |
|
d) Employee benefits expense |
167.200 |
165.100 |
491.500 |
|
e) Depreciation and amortisation expenses |
124.400 |
119.600 |
361.800 |
|
f) Other expenses |
158.800 |
132.400 |
451.800 |
|
Total
expenditure |
1214.900 |
1261.400 |
3794.900 |
|
Profit from
operations before other income, interest and impact of forward contracts |
314.300 |
264.600 |
912.800 |
|
Other Income |
2.000 |
51.000 |
56.300 |
|
Profit Before
Interest and impact of forward contracts |
316.300 |
315.600 |
969.100 |
|
Finance cost |
134.000 |
125.800 |
387.400 |
|
Profit from
ordinary activities before tax and impact of forward contracts |
182.300 |
189.800 |
581.700 |
|
- Exchange loss (Refer note no. 3 below) |
55.000 |
167.600 |
376.300 |
|
- Reversal of cash flow hedge reserve |
- |
- |
- |
|
Profit from
ordinary activities before tax |
127.300 |
22.200 |
205.400 |
|
Provision for taxation |
|
|
|
|
- Current taxes |
24.600 |
4.300 |
41.100 |
|
- Minimum Alternatives Tax credit |
(24.600) |
(4.300) |
(41.100) |
|
- Deferred tax |
37.000 |
1.000 |
43.000 |
|
Net Profit after
tax |
90.300 |
21.200 |
162.400 |
|
Paid-up equity share capital |
164.400 |
164.400 |
164.400 |
|
Reserves excluding revaluation reserves |
|
|
|
|
Earnings per share
( face value Rs. 10/-) |
|
|
|
|
- Basic |
5.49 |
1.29 |
9.88 |
|
- Diluted |
5.49 |
1.29 |
9.88 |
|
- Cash |
13.06 |
8.57 |
31.88 |
|
A. PARTICULARS OF
HOLDINGS |
|
|
|
|
Public shareholding |
|
|
|
|
- No of shares |
5,125,963 |
5,125,963 |
5,125,963 |
|
- Percentage of shareholding |
31.18% |
31.18% |
31.18% |
|
Promoters and promoter group shareholding |
|
|
|
|
a) Pledged / Encumbered |
|
|
|
|
- No of shares |
- |
- |
- |
|
- Percentage of shares (as a % of the total shareholding of promoters and promoter group) |
- |
- |
- |
|
- Percentage of shares (as a % of the total share capital of the company) |
- |
- |
- |
|
b) Non-encumbered |
|
|
|
|
- No of shares |
11,314,137 |
11,314,137 |
11,314,137 |
|
- Percentage of shares (as a % of the total shareholding of promoters and promoter group) |
100.00% |
100.00% |
100.00% |
|
- Percentage of shares (as a % of the total share capital of the company) |
68.82% |
68.82% |
68.82% |
|
|
|
|
|
|
B) INVESTOR COMPLAINTS |
|
|
|
|
Pending at the beginning of the quarter |
1 |
|
|
|
Received during the quarter |
1 |
|
|
|
Disposed of during the quarter |
1 |
|
|
|
Remaining unresolved at the end of the quarter |
1 |
|
|
1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting on February 6, 2013
2. The Scheme of Arrangement for merger of Acoris Research Limited (ARL) with
the Company was sanctioned by Hon'ble High Court of Bombay vide its order dated
March 30, 2012. Accordingly, ARL was merged with the Company from the Appointed
Date April 1, 2012. Accordingly, effective April 1, 2012 all assets/liabilities
of ARL is taken over by the company at the book value and the difference of
Rs.285.000 Millions between the assets/liabilities is adjusted in Securities
Premium Account. In view of the aforesaid merger, the figures for the current
quarter including EPS are strictly not comparable with those of the
corresponding period of the previous year.
3. The Company has entered into forward/options contracts to hedge its exposure
to fluctuations in foreign exchange for approx 30% of future exports. These
covers have been staggered upto the period March 31, 2013, as the major
percentage of the Company's turnover is realized from exports. The Company is
of the opinion that the result of these transactions represent unrealised
losses that are notional in nature. The management is of the opinion that the
fluctuation in currency movements against hedged contracts gets compensated by
realization of a higher value of sales realizations and therefore, the actual
profit/loss against such outstanding contracts crystallizes only on maturity of
such forward contracts. The gain/ loss on these transactions will be recognised
as and when they fall due. The mark to market valuation loss is Rs.210.400 Millions
as on December 31, 2012 (corresponding previous period as on December 31, 2011
Rs.753.400 Millions).Further, due to extant volatility in foreign currency
rates the exchange difference of Rs. 32.100 Millions as on December 31,2012
(corresponding previous period as on December 31, 2011 Rs. 135.400 Millions) on
outstanding short term working capital loans, will be accounted at the rate
prevailing on the date of payment .
FIXED ASSETS
·
·
Leasehold land
·
Building
·
Plant
and Machinery
·
Electrical installation
·
Office
Equipments
·
Furniture
and Fixtures
·
Vehicles
·
Ships
AS PER WEBSITE DETAILS
PRESS RELEASE:
Mumbai, February 6, 2013: Hikal
Limited, the preferred long-term outsourcing partner for leading global
life sciences companies, today announced its financial results for the
third quarter ended 31st December,2012.
Financial highlights for the Quarter and Nine Months (9M)
ended 31st December 2012
• Net sales for the quarter stood at Rs.
1529.000 Millions as compared to Rs. 1855.000 Millions in the
corresponding quarter of the previous year
• The EBIDTA for this quarter decreased
marginally to Rs. 441.000 Millions as compared to Rs. 462.000 Millions
in the corresponding quarter of the previous year
• PBT stood at Rs. 127.300 Millions versus
Rs. 126.600 Millions
• PAT for the quarter was at Rs. 90.000 Millions
versus Rs. 130.000 Millions
• Agro sales at Rs. 639.000 Millions as
compared to Rs. 550.000 Millions in the corresponding quarter of the
previous year, a increase of 16%
• Pharma sales at Rs. 891.000 Millions as
compared to Rs. 1304.000 Millions in the corresponding quarter of
the previous year
• 9M Net Sales were at Rs. 4708.000 Millions
versus Rs. 4729.000 Millions
• 9M EBIDTA stood at 1331.000 Millions
versus to Rs. 1188.000 Millions, with an increase of 12% compared to
the corresponding period of the previous year.
• 9M PBT was at Rs. 206.000 Millions versus
Rs. 403.000 Millions last year
• 9M PAT at Rs. 163.000 Millions versus Rs.
390.000 Millions in the last year
• 9M Agro sales increased by 28.5% to Rs.
2062.000 Millions as compared to Rs. 1605.000 Millions last year.
• 9M Pharma sales stood at Rs. 2646.000 Millions
as compared to Rs. 3124.000 Millions
Commenting on the results, Jai Hiremath, Chairman
and Managing Director, Hikal Limited. said, “Our Agrochemical division
continues to grow on back of increased off-take by our customers.
Our Pharmaceutical division has been affected by destocking of inventory
by our customers most of which has been pushed into the fourth quarter of
this financial year. Even though our EBITDA margins have increased quarter
on quarter of this financial year, the net profit is lower due to foreign
exchange losses. The forecast from our customers for the rest of the
financial year remains positive. Our operational margins are healthy and
we expect to continue the growth well into next financial year.”
About Hikal
Hikal is a reliable long-term outsourcing partner to companies in
the Pharmaceuticals, Crop protection Products, and Specialty Chemicals
industry. The company has been supplying key active ingredients (AI), API’s and
intermediates, manufactured using stringent global quality standards, for its
customers in the United States, Europe and Japan. Hikal’s advanced
manufacturing facilities have been inspected and approved by leading global
players in Crop protection and Pharmaceutical sectors. The crop protection
facilities are located at Taloja and Mahad (Maharashtra). Hikal’s manufacturing
activities are supported by state-of-the-art research centres and pilot plant
facilities located at Bangalore and Taloja respectively. The API and
pharmaceutical intermediates manufacturing facilities are situated in Jigani
(Bangalore) and Panoli (Gujarat), respectively. Hikal also has a
state-of-the-art research facility, Acoris Research located at the
International Biotech Park, Pune.
CMT REPORT [Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No
available information exist that suggest that subject or any of its principals
have been formally charged or convicted by a competent governmental authority
for any financial crime or under any formal investigation by a competent
government authority for any violation of anti-corruption laws or international
anti-money laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.53.74 |
|
|
1 |
Rs.83.54 |
|
Euro |
1 |
Rs.70.72 |
INFORMATION DETAILS
|
Information
Gathered by : |
PLK |
|
|
|
|
Report Prepared
by : |
RAJ |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
5 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILIRY |
1~10 |
6 |
|
--LIQUIDITY |
1~10 |
5 |
|
--LEVERAGE |
1~10 |
5 |
|
--RESERVES |
1~10 |
6 |
|
--CREDIT LINES |
1~10 |
6 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
NO |
|
--AFFILIATION |
YES/NO |
NO |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
--DEFAULTER |
|
|
|
--RBI |
YES/NO |
NO |
|
--EPF |
YES/NO |
NO |
|
TOTAL |
|
50 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively
below average. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
- |
NB |
New Business |
- |
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.