MIRA INFORM REPORT
|
Report No. : |
337543 |
|
Report Date : |
21.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
HIKAL LIMITED |
|
|
|
|
Registered
Office : |
717/718, Maker
Chambers V, 7th Floor, Nariman Point, Mumbai – 400021, Maharashtra |
|
Tel. No.: |
91-22-22301801 |
|
|
|
|
Country : |
India |
|
|
|
|
Financials (as
on) : |
31.03.2015 |
|
|
|
|
Date of
Incorporation : |
08.07.1988 |
|
|
|
|
Com. Reg. No.: |
11–048028 |
|
|
|
|
Capital
Investment / Paid-up Capital : |
Rs. 164.400 Million |
|
|
|
|
CIN No.: [Company Identification
No.] |
L24200MH1988PTC048028 |
|
|
|
|
TIN No.: |
Not Available |
|
|
|
|
IEC No.: |
Not Available |
|
|
|
|
TAN No.: [Tax Deduction &
Collection Account No.] |
MUMH07537F /
BRDH00497A |
|
|
|
|
PAN No.: [Permanent Account No.] |
AAACH0383A |
|
|
|
|
Legal Form : |
A Public Limited Liability Company.
The Company’s Shares are Listed on the Stock Exchanges. |
|
|
|
|
Line of Business
: |
The Company is engaged in the manufacturing of various chemical
intermediates, specialty chemicals, active pharma ingredients and contract
research activities. |
|
|
|
|
No. of Employees
: |
1164 (Approximately) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba (50) |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Maximum Credit Limit : |
USD 15000000 |
|
|
|
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Usually Correct |
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|
|
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Litigation : |
Clear |
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Comments : |
Subject is an
established company having satisfactory track. The company
possesses a favorable financial profile marked by adequate networth base
along with modest working capital intensive operations. Management has witnessed
a decent revenue as well as higher profitability and cash accruals leading to
improvement in debt protection metrics during FY 2014. Trade relations are fair. Business is active. Payment terms are
reported as usually correct. The company can be considered 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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
India |
A1 |
A1 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
|
Restricted |
C2 |
|
Off-credit |
D |
EXTERNAL AGENCY RATING
|
Rating Agency Name |
ICRA |
|
Rating |
Long Term Rating = BBB |
|
Rating Explanation |
Moderate degree of safety and moderate
credit risk |
|
Date |
March 2015 |
|
Rating Agency Name |
ICRA |
|
Rating |
Short Term Rating = A2 |
|
Rating Explanation |
Strong degree of safety and low credit risk |
|
Date |
March 2015 |
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
31-03-2013.
INFORMATION DECLINED BY
|
Name : |
Mr. Sham Vinayak Wahalekar |
|
Designation : |
Chief Financial Officer |
|
Contact No.: |
91-22-22301801 |
LOCATIONS
|
Registered
Office / Corporate Office : |
717/718, Maker
Chambers V, 7th Floor, Nariman Point, Mumbai – 400 021,
Maharashtra, India |
|
Tel. No.: |
91-22-22301801 |
|
Fax No.: |
91-22-22833913 |
|
E-Mail : |
|
|
Website : |
|
|
|
|
|
Head Office : |
6, Nawab Building,
327, Dr. D. N. Road, Fort, Mumbai – 400 001, Maharashtra, India. |
|
Tel. No.: |
91-22-22301801 |
|
Fax No.: |
91-22-22833913 |
|
|
|
|
Administrative
Office / Headquartered: |
Great Eastern Chambers,
6th Floor, Sector 11, CBD – Belapur, Navi Mumbai – 400 614, Maharashtra,
India |
|
Tel. No.: |
91-22-27574276 /
27574336 / 27574991 / 30973100 |
|
Fax No.: |
91-22-27574277 |
|
Email : |
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|
|
|
|
Plant Location
: |
Tel No. : 91-2646-302 100
|
|
|
|
|
Overseas
Office |
Located at
|
DIRECTORS
As on 31.03.2015
|
Name : |
Mr. Jai Hiremath |
|
Designation : |
Chairman and Managing Director |
|
|
|
|
Name : |
Mr. Sameer J. Hiremath |
|
Designation : |
President and Joint Managing Director |
|
|
|
|
Name : |
Mr. Kannan Unni |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Baba N. Kalyani |
|
Designation : |
Director |
|
|
|
|
Name : |
Dr. Axel Kleemann |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Wolfgang Welter |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Prakash V. Mehta |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Shivkumar M. Kheny |
|
Designation : |
Director |
|
|
|
|
Name : |
Mrs. Sugandha J. Hiremath |
|
Designation : |
Director |
|
|
|
|
Name : |
Mr. Amit Kalyani |
|
Designation : |
Director |
KEY EXECUTIVES
|
Name : |
Mr. Sham. V. Wahalekar |
|
Designation : |
Company Secretary/ Chief Financial Officer |
|
|
|
|
Name : |
Mr. Manoj Mehrotra |
|
Designation : |
President Pharmaceutical |
|
|
|
|
Name : |
Mr. Kumar Inamdar |
|
Designation : |
President – Crop Protection |
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|
|
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Audit Committee : |
|
|
|
|
|
Managing Committee
: |
|
SHAREHOLDING PATTERN
As on 30.06.2015
|
Category of
Shareholder |
No.
of Shares |
Percentage
of Holding |
|
(A) Shareholding of Promoter and Promoter Group |
|
|
|
|
|
|
|
|
7863400 |
9.57 |
|
|
48115110 |
58.53 |
|
|
550000 |
0.67 |
|
|
550000 |
0.67 |
|
|
56528510 |
68.77 |
|
|
|
|
|
Total shareholding of Promoter and Promoter Group (A) |
56528510 |
68.77 |
|
(B) Public Shareholding |
|
|
|
|
|
|
|
|
7993113 |
9.72 |
|
|
2010 |
0.00 |
|
|
100500 |
0.12 |
|
|
3878905 |
4.72 |
|
|
11974528 |
14.57 |
|
|
|
|
|
|
710287 |
0.86 |
|
|
|
|
|
|
4988746 |
6.07 |
|
|
725530 |
0.88 |
|
|
7272899 |
8.85 |
|
|
65405 |
0.08 |
|
|
285944 |
0.35 |
|
|
6921550 |
8.42 |
|
|
13697462 |
16.66 |
|
Total Public shareholding (B) |
25671990 |
31.23 |
|
Total (A)+(B) |
82200500 |
100.00 |
|
(C) Shares held by Custodians and against which Depository Receipts
have been issued |
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
|
0 |
0.00 |
|
Total (A)+(B)+(C) |
82200500 |
0.00 |
BUSINESS DETAILS
|
Line of Business : |
The Company is engaged in the manufacturing of various
chemical intermediates, specialty chemicals, active pharma ingredients and contract
research activities. |
|
|
|
|
Brand Names : |
Not Available |
|
|
|
|
Agencies Held : |
Not Available |
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Exports : |
Not Divulged |
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Imports : |
Not Divulged |
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Terms : |
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Selling : |
Not Divulged |
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Purchasing : |
Not Divulged |
PRODUCTION STATUS – NOT AVAILABLE
GENERAL INFORMATION
|
Suppliers : |
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Customers : |
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No. of Employees : |
1164 (Approximately) |
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Bankers : |
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Facilities : |
|
|
Auditors : |
|
|
Name : |
BSR and Company Chartered Accountants |
|
Address: |
1st Floor,
Lodha Excelue, Apollo Mills Compound, N M Joshi Marg, Mahalaxmi, Mumbai –
400011, Maharashtra, India |
|
Tel No.: |
91-22-39896000 |
|
Fax No.: |
91-22-30902511 |
|
|
|
|
|
|
|
Legal Advisor : |
Malvi Ranchoddas
and Company |
|
|
|
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Memberships : |
-- |
|
|
|
|
Collaborators : |
-- |
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|
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|
Subsidiary
Companies : |
|
|
|
|
|
Enterprises over
which key management personnel and their relatives exercise significant influence
: |
|
CAPITAL STRUCTURE
As on 31.03.2015
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
125000000 |
Equity Share |
Rs.2/- each |
Rs.250.000
Million |
|
5000000 |
Cumulative
Redeemable Preference shares |
Rs.10/- each |
Rs.500.000
Million |
|
|
Total |
|
Rs.750.000
Million |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
|
|
|
|
|
82200500 |
Equity Shares |
Rs.2/- each |
Rs.164.400
Million |
Note:
The company has altered the memorandum and Articles of association by passing special resolution of the shareholders through postal ballot / e – voting on 16 February 2015 and subdivided its 16,440,100 equity shares of Rs. 10 each into 82,200,500 equity shares of Rs. 2 each. The number of equity shares of the Authorised, Issued and subscribed and paid – up capital has been sub-dividend accordingly.
Reconciliation of the shares outstanding at
the beginning and at the end of the reporting period
|
Equity Shares |
Number
in Million |
Rs. In Million |
|
At the beginning of the year |
16.440 |
164.400 |
|
Increase in number of equity shares on account of sub division |
65.760 |
0.000 |
|
Outstanding at the end of the year |
82.200 |
164.400 |
Terms/rights
attached to equity shares
The company has only one class of equity shares having a par value of Rs.2/- 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 shareholders in the ensuing Annual General Meeting.
During the year ended March 31, 2015 the amount of per share dividend recognized as distributions to equity shareholders was Rs.1 on face value of Rs.2 /-.
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.
Details of
shareholders holding more than 5% shares in the company
|
Name of
Shareholder |
Number
of Shares |
% holding |
|
Kalyani Investment Company Limited |
25.780 |
31.36 |
|
Shri Badrinath Investment Private Limited |
13.28 |
16.15 |
|
International Finance Corporation |
6.80 |
8.27 |
|
Reliance Capital Trustee Company Limited |
6.58 |
8.00 |
|
Shree Rameshwara Investment Private Limited |
6.54 |
7.96 |
|
Sugandha J Hiremath |
6.54 |
7.84 |
FINANCIAL DATA
[all figures are
in Rupees Million]
ABRIDGED
BALANCE SHEET
|
SOURCES
OF FUNDS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
|
|
|
|
I.
EQUITY AND LIABILITIES |
|
|
|
|
(1)Shareholders' Funds |
|
|
|
|
(a) Share Capital |
164.400 |
164.400 |
164.400 |
|
(b) Reserves & Surplus |
5170.340 |
4894.650 |
4348.080 |
|
(c) Money received against
share warrants |
0.000 |
0.000 |
0.000 |
|
|
|
|
|
|
(2) Share Application money
pending allotment |
0.000 |
0.000 |
0.000 |
|
Total
Shareholders’ Funds (1) + (2) |
5334.740 |
5059.050 |
4512.480 |
|
|
|
|
|
|
(3) Non-Current Liabilities |
|
|
|
|
(a) long-term borrowings |
2014.430 |
2548.220 |
2196.270 |
|
(b) Deferred tax liabilities
(Net) |
285.110 |
324.900 |
86.250 |
|
(c) Other long term
liabilities |
0.000 |
0.000 |
0.000 |
|
(d) long-term provisions |
117.120 |
109.200 |
96.620 |
|
Total
Non-current Liabilities (3) |
2416.660 |
2982.320 |
2379.140 |
|
|
|
|
|
|
(4) Current Liabilities |
|
|
|
|
(a) Short term borrowings |
2310.110 |
2155.480 |
2602.830 |
|
(b) Trade payables |
1371.250 |
1310.850 |
1128.410 |
|
(c) Other current liabilities |
1315.190 |
1001.910 |
1236.280 |
|
(d) Short-term provisions |
181.310 |
197.900 |
60.440 |
|
Total
Current Liabilities (4) |
5177.860 |
4666.140 |
5027.960 |
|
|
|
|
|
|
TOTAL |
12929.260 |
12707.510 |
11919.580 |
|
|
|
|
|
|
II.
ASSETS |
|
|
|
|
(1) Non-current assets |
|
|
|
|
(a) Fixed Assets |
|
|
|
|
(i) Tangible assets |
6393.520 |
6441.410 |
6607.570 |
|
(ii) Intangible Assets |
0.000 |
0.000 |
0.000 |
|
(iii) Capital work-in-progress |
616.610 |
611.670 |
485.430 |
|
(iv) Intangible assets under
development |
0.000 |
0.000 |
0.000 |
|
(b) Non-current Investments |
31.270 |
31.270 |
31.270 |
|
(c) Deferred tax assets (net) |
0.000 |
0.000 |
0.000 |
|
(d) Long-term Loan and Advances |
879.410 |
677.190 |
704.160 |
|
(e) Other Non-current assets |
0.000 |
0.000 |
0.000 |
|
Total
Non-Current Assets |
7920.810 |
7761.540 |
7828.430 |
|
|
|
|
|
|
(2) Current assets |
|
|
|
|
(a) Current investments |
0.000 |
0.000 |
0.000 |
|
(b) Inventories |
3139.540 |
3112.930 |
2570.330 |
|
(c) Trade receivables |
1279.710 |
887.370 |
846.290 |
|
(d) Cash and cash equivalents |
136.920 |
276.880 |
154.050 |
|
(e) Short-term loans and
advances |
409.160 |
657.390 |
514.410 |
|
(f) Other current assets |
43.120 |
11.400 |
6.070 |
|
Total
Current Assets |
5008.450 |
4945.970 |
4091.150 |
|
|
|
|
|
|
TOTAL |
12929.260 |
12707.510 |
11919.580 |
PROFIT
& LOSS ACCOUNT
|
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
|
SALES |
|
|
|
|
|
Income |
8718.520 |
8292.110 |
6604.170 |
|
|
Other Income |
15.770 |
340.550 |
63.080 |
|
|
TOTAL
(A) |
8734.290 |
8632.660 |
6667.250 |
|
|
|
|
|
|
|
Less |
EXPENSES |
|
|
|
|
|
Cost of Materials Consumed |
4318.860 |
3878.100 |
2725.980 |
|
|
Changes in inventories of
finished goods, work-in-progress and Stock-in-Trade |
(48.680) |
(119.840) |
(115.480) |
|
|
Employees benefits expense |
892.040 |
790.190 |
701.760 |
|
|
Other expenses |
1731.260 |
1870.860 |
1447.980 |
|
|
Exceptional Items |
0.000 |
0.000 |
484.330 |
|
|
TOTAL
(B) |
6893.480 |
6419.310 |
5244.570 |
|
|
|
|
|
|
|
Less |
PROFIT/
(LOSS) BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION (C) |
1840.810 |
2213.350 |
1422.680 |
|
|
|
|
|
|
|
Less |
FINANCIAL
EXPENSES (D) |
600.470 |
680.040 |
598.780 |
|
|
|
|
|
|
|
|
PROFIT
/ (LOSS) BEFORE TAX, DEPRECIATION AND AMORTISATION (C-D) (E) |
1240.340 |
1533.310 |
823.900 |
|
|
|
|
|
|
|
Less/
Add |
DEPRECIATION/
AMORTISATION (F) |
641.780 |
550.230 |
490.620 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
BEFORE TAX (E-F) (G) |
598.560 |
983.080 |
333.280 |
|
|
|
|
|
|
|
Less |
TAX (H) |
193.470 |
342.270 |
78.240 |
|
|
|
|
|
|
|
|
PROFIT/ (LOSS)
AFTER TAX (G-H) (I) |
405.090 |
640.810 |
255.040 |
|
|
|
|
|
|
|
Add |
PREVIOUS
YEARS’ BALANCE BROUGHT FORWARD |
2577.380 |
2123.120 |
1946.170 |
|
|
|
|
|
|
|
Less |
APPROPRIATIONS |
|
|
|
|
|
Interim Dividend on Equity
Shares |
41.100 |
32.880 |
0.000 |
|
|
Proposed Dividend on Equity
Shares |
41.100 |
41.100 |
41.100 |
|
|
Tax on proposed dividend |
16.730 |
12.570 |
6.990 |
|
|
Transfer to General Reserve |
50.000 |
100.000 |
30.000 |
|
|
Impact of depreciation
pursuant to adoption of useful lives |
46.160 |
0.000 |
0.000 |
|
|
Deferred tax on above |
(15.690) |
0.000 |
0.000 |
|
|
Balance
Carried to the B/S |
2803.070 |
2577.380 |
2123.120 |
|
|
|
|
|
|
|
|
EARNINGS
IN FOREIGN CURRENCY |
|
|
|
|
|
FOB value of export |
6890.040 |
7056.900 |
5818.080 |
|
|
TOTAL
EARNINGS |
6890.040 |
7056.900 |
5818.080 |
|
|
|
|
|
|
|
|
IMPORTS |
|
|
|
|
|
Raw Materials |
2439.210 |
2302.350 |
1925.550 |
|
|
Capital Goods |
33.450 |
13.710 |
14.310 |
|
|
Stores & Spares |
13.200 |
22.400 |
7.460 |
|
|
TOTAL
IMPORTS |
2485.860 |
2338.460 |
1947.320 |
|
|
|
|
|
|
|
|
Earnings
/ (Loss) Per Share (Rs.) |
4.93 |
7.80 |
15.52 |
CURRENT MATURITIES
OF LONG TERM DEBT DETAILS
|
Particulars |
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Current Maturities of Long term borrowings |
113.753 |
737.240 |
1128.410 |
|
Cash generated from operations |
NA |
NA |
NA |
|
Net cash flows from (used in) operations |
NA |
NA |
NA |
QUARTERLY
RESULTS
|
PARTICULARS |
|
|
30.06.2015 1st
Quarter |
|
Audited
/ UnAudited |
|
|
|
|
|
|
|
|
|
Net Sales |
|
|
1914.800 |
|
Total Expenditure |
|
|
1612.700 |
|
PBIDT (Excl OI) |
|
|
302.100 |
|
Other Income |
|
|
4.500 |
|
Operating Profit |
|
|
306.600 |
|
Interest |
|
|
116.200 |
|
Exceptional Items |
|
|
NA |
|
PBDT |
|
|
190.40 |
|
Depreciation |
|
|
163.600 |
|
Profit Before Tax |
|
|
26.800 |
|
Tax |
|
|
8.500 |
|
Provisions and contingencies |
|
|
NA |
|
Profit After Tax |
|
|
18.300 |
|
Extraordinary Items |
|
|
NA |
|
Prior Period Expenses |
|
|
NA |
|
Other Adjustments |
|
|
NA |
|
Net Profit |
|
|
18.30 |
KEY
RATIOS
|
PARTICULARS |
|
31.03.2015 |
31.03.2014 |
31.03.2013 |
|
Net Profit Margin (PAT/Sales) |
(%) |
4.65 |
7.73 |
3.86 |
|
|
|
|
|
|
|
Operating Profit Margin (PBDIT/Sales) |
(%) |
21.11 |
26.69 |
21.54 |
|
|
|
|
|
|
|
Return on Total Assets (PBT/Total Assets} |
(%) |
4.87 |
8.15 |
2.92 |
|
|
|
|
|
|
|
Return on Investment (ROI) (PBT/Networth) |
|
0.11 |
0.19 |
0.07 |
|
|
|
|
|
|
|
Debt Equity Ratio (Total Debt /Networth) |
|
0.83 |
1.08 |
1.31 |
|
|
|
|
|
|
|
Current Ratio (Current Asset/Current Liability) |
|
0.97 |
1.06 |
0.81 |
STOCK
PRICES
|
Face Value |
Rs.2/- |
|
Market Value |
Rs.118/- |
FINANCIAL ANALYSIS
[all figures are
in Rupees Million]
DEBT EQUITY RATIO
|
Particular |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Share Capital |
164.400 |
164.400 |
164.400 |
|
Reserves & Surplus |
4348.080 |
4894.650 |
5170.340 |
|
Money received against share warrants |
0.000 |
0.000 |
0.000 |
|
Share Application money pending allotment |
0.000 |
0.000 |
0.000 |
|
Net
worth |
4512.480 |
5059.050 |
5334.740 |
|
|
|
|
|
|
long-term borrowings |
2196.270 |
2548.220 |
2014.430 |
|
Short term borrowings |
2602.830 |
2155.480 |
2310.110 |
|
Current maturities of
long-term debts |
1128.410 |
737.240 |
113.753 |
|
Total
borrowings |
5927.510 |
5440.940 |
4438.293 |
|
Debt/Equity
ratio |
1.314 |
1.075 |
0.832 |
YEAR-ON-YEAR GROWTH
|
Year
on Year Growth |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
6604.170 |
8292.110 |
8718.520 |
|
|
|
25.559 |
5.142 |
NET PROFIT MARGIN
|
Net
Profit Margin |
31.03.2013 |
31.03.2014 |
31.03.2015 |
|
|
(Rs.
In Million) |
(Rs.
In Million) |
(Rs.
In Million) |
|
Sales |
6604.170 |
8292.110 |
8718.520 |
|
Profit |
255.040 |
640.810 |
405.090 |
|
|
3.86% |
7.73% |
4.65% |
LOCAL AGENCY FURTHER INFORMATION
|
Sr. No. |
Check list by
info agents |
Available in
Report (Yes/No) |
|
1 |
Year of establishment |
Yes |
|
2 |
Constitution of the entity -Incorporation
details |
Yes |
|
3 |
Locality of the entity |
Yes |
|
4 |
Premises details |
No |
|
5 |
Buyer visit details |
-- |
|
6 |
Contact numbers |
Yes |
|
7 |
Name of the person contacted |
Yes |
|
8 |
Designation of contact person |
Yes |
|
9 |
Promoter’s background |
Yes |
|
10 |
Date of Birth of Proprietor / Partners /
Directors |
Yes |
|
11 |
Pan Card No. of Proprietor / Partners |
No |
|
12 |
Voter Id Card No. of Proprietor / Partners |
No |
|
13 |
Type of business |
Yes |
|
14 |
Line of Business |
Yes |
|
15 |
Export/import details (if applicable) |
No |
|
16 |
No. of employees |
Yes |
|
17 |
Details of sister concerns |
Yes |
|
18 |
Major suppliers |
No |
|
19 |
Major customers |
No |
|
20 |
Banking Details |
Yes |
|
21 |
Banking facility details |
Yes |
|
22 |
Conduct of the banking account |
-- |
|
23 |
Financials, if provided |
Yes |
|
24 |
Capital in the business |
Yes |
|
25 |
Last accounts filed at ROC, if applicable |
Yes |
|
26 |
Turnover of firm for last three years |
Yes |
|
27 |
Reasons for variation <> 20% |
-- |
|
28 |
Estimation for coming financial year |
No |
|
29 |
Profitability for last three years |
Yes |
|
30 |
Major shareholders, if available |
Yes |
|
31 |
External Agency Rating, if available |
Yes |
|
32 |
Litigations that the firm/promoter
involved in |
-- |
|
33 |
Market information |
-- |
|
34 |
Payments terms |
No |
|
35 |
Negative Reporting by Auditors in the
Annual Report |
No |
COMPANY
PERFORMANCE
Hikal's total revenue grew to Rs.8719.000 Million, a 5% increase over the last year. The growth was driven by a 13% Increase in the pharmaceutical division with higher off take of their key products. They expect growth in the pharmaceutical division to continue in the future.
The pharmaceutical division registered a 28% increase in volume year on year. However, fierce competition in their product segments led to price erosion of some of their key products which offset the volume gain they experienced. Pricing for some of their key products is expected to stabilize in the coming year which will help arrest the drop in margins. They will de-risk some of the portfolio with the introduction of new products this year.
In the crop protection division, there was erosion in value as well as value primarily caused by inventory cuts by their major clients. Volume was down by 6% as compared to the previous year. Sales were down by 5%, which partially offset the gain in the pharmaceutical division. The agricultural industry is experiencing a downturn after having several years of high single digit growth. They expect impact to reverse itself in the second half of the current financial year. They are working towards diversifying their product portfolio and customer base which would ease the effects of the global downturn. Their EBITDA margin was down by 2% to Rs.1841.000 Million due to lower pricing for increased volumes as well as increased pricing competition. In this challenging market, they still operate at a healthy EBITDA margin of 21%. They introduced several cost rationalization initiatives in the current year. Cost savings from their co-generation plant, purchasing power at discounted tariffs and process improvements will protect their margins going forward. They have instituted strict working capital norms which will help free up cash reserves and reduce their overall working capital costs.
Depreciation was higher at Rs.642.000 Million from Rs.550.000 Million last year due to capitalization of additional assets in the pharmaceutical and R&D divisions. Significant investments were made to debottleneck and increase capacities of some of their manufacturing plants.
During the year, gross fixed assets increased by Rs.640.000 million due to an increase in capital assets (buildings, plants and equipment) in the pharmaceutical division and R&D. They invested a significant amount of money to set up their new development and launch plant and a co-generation plant at Jigani. Bangalore. They also invested in several debottlenecking initiatives across their sites.
Their financing cost was lower at Rs.600.000 million vs. Rs.680.000 million last year due to a reduction in the outstanding long term debt. Their total debt outstanding as on March 31, 2015 was Rs.5471.000 million, slightly up from Rs.5458.000 million on March 31 2014. Their debt/equity ratio has improved to 0.81 vs. 0.93 last year. They expect to further improve their financial leverage with repayments scheduled this year. They are actively working on strengthening their balance sheet.
The tax expense decreased from Rs.342.000 million to Rs.193.000 million this year due to tax on exceptional income last year (one time sale of ESOP shares as per SEBI rules).
Their operational net profit after tax was down by 4% YOY at Rs.405.000 million.
Hikal has undertaken several measures to ensure sustainability in the short as well as long term. They filed two DMFs for which products are expected to be commercialized during the year. They plan to file five to six DMFs every year for products that have significant commercial potential. It will increase their product portfolio and reduce their dependence on several legacy products. It will also help us phase out saturated products with declining margins. In crop protection. They aspire to grow their proprietary products to safeguard their division from volatile demand for some of their key contract manufactured molecules.
This year they refined their business strategy. They strengthened their business development teams for crop protection as well as the pharmaceutical divisions. Their primary objective is to develop a robust· and diversified product pipeline mix of commercialized products. They recruited talent for R&D and set up new labs in allied but new business areas such as steroids. They debottlenecked their scale up facilities last year with the addition of a development and launch plant in Jigani which will enable a larger throughput of products from development into commercialization.
In a challenging environment. They increased their revenues and achieved a healthy EBITDA margin of 21 %. They are well positioned to reap the benefits of their capital investments and benefit from their product pipeline. The Board of Directors has recommended a dividend of 50% as against 45% last year.
BACKGROUND
The Company was incorporated as a public limited Company on July 8, 1988 having its registered office at 717/718, Maker Chamber V, Nariman Point, Mumbai 400 021. The Company is engaged in the manufacturing of various chemical intermediates, specialty chemicals, active pharma ingredients and contract research activities.
The Company is operating in the crop protection and pharmaceuticals space.
UNSECURED LOAN:
|
Particulars |
31.03.2015 Rs.
In Million |
31.03.2014 Rs.
In Million |
|
LONG TERM
BORROWINGS |
|
|
|
Deferred sales tax liability |
0.000 |
2.660 |
|
SHORT TERM
BORROWINGS |
|
|
|
Inter corporate deposits |
|
|
|
From related parties |
0.000 |
36.450 |
|
From others |
215.000 |
135.000 |
|
Total |
215.000 |
174.110 |
STATEMENT OF
UNAUDITED RESULTS FOR THE QUARTER ENDED 30 JUNE, 2015
(Rs. In Million)
|
Particulars
|
Quarter Ended ( Unaudited) |
|
|
30.06.2015 |
|
|
|
|
Income
from operations |
|
|
Sales / income from operations |
1937.800 |
|
Less: Excise duty |
23.000 |
|
Net sales / income from operations |
1960.800 |
|
Total expenditure |
|
|
a) Cost of
materials and utilities consumed |
1035.900 |
|
b) Purchases of stock-
in- trade |
0.000 |
|
c) Change in
inventories of finished goods and work in progress |
75.700 |
|
d) Employee
benefits expense |
253.000 |
|
e) Depreciation and
amortisation expenses |
163.600 |
|
f) Other expenses |
186.900 |
|
Total expenditure |
1715.100 |
|
Profit from operations before
other income, interest and impact of forward contracts |
199.700 |
|
Other Income |
4.500 |
|
Profit Before Interest and
impact of forward contracts |
204.200 |
|
Finance cost |
|
|
Profit from ordinary
activities before tax and impact of forward contracts |
116.200 |
|
- Exchange loss |
61.200 |
|
Profit from ordinary
activities before tax |
26.800 |
|
Provision for taxation |
|
|
- Current taxes |
8.900 |
|
- Deferred tax |
(0.400) |
|
Net Profit after tax |
18.300 |
|
Paid-up equity share capital |
164.400 |
|
Reserves excluding revaluation
reserves |
|
|
Earnings per share ( face
value Rs. 10/-) |
|
|
-
Basic |
0.22 |
|
- Diluted |
0.22 |
|
- Cash |
2.21 |
|
Public shareholding |
|
|
- No
of shares |
25671990 |
|
-
Percentage of shareholding |
31.23% |
|
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 |
56528510 |
|
- Percentage of shares (as a %
of the total shareholding of promoters and promoter group |
100.00% |
|
- Percentage of shares (as a %
of the total share capital of the company) |
68.77% |
|
B.
Investor Complaints |
30.06.2015 |
|
Pending at the beginning of the quarter |
1 |
|
Receiving during the quarter |
Nil |
|
Disposed of during the quarter |
1 |
|
Remaining unreserved at the end of the quarter |
Nil |
Note:
1. The above results were reviewed by the Audit Committee and approved by the Board of Directors at their meeting on 29 July,2015
2. The results for the quarter ended on 30 June 2015 have been subjected to a "Limited Review" by the statutory auditors of the Company. The limited review report does not contain any qualification. The limited review report will be filed with the Stock Exchanges and will also be available on company's web site-www.hikal.com.
3. The figures for the quarter ended 31 March 2015 are the balancing figures between audited figures in respect of the full financial year and published year to date figures up to the end of the third quarter of the relevant financial year. Also the figures up to the end of the third quarter had only been reviewed and not subjected to audit.
4. On 16 February, 2015, The nominal value of equity share of Rs 10/- each were subdivided into five equity shares of Rs 2/-each. Accordingly the earning per share (EPS) for the previous period/year has been restated in accordance with AS-20 "Earning Per Share" issued by the Institute of Chartered Accountants of India.
5. During the June 2015 quarter, exchange loss of Rs. 61.200 Million (June 30, 2014: Rs.5.300 Million) on foreign currency working capital loans includes unrealised exchange loss of Rs 53.700 Million (June 30, 2014 : Rs .8.700 Million)
6. The figures for the previous period/year have been regrouped/reclassified wherever necessary.
SEGMENT WISE REVENUE,
RESULTS AND CAPITAL EMPLOYED FOR THE QUARTER ENDED 30TH JUNE 2015
|
Particulars |
Quarter Ended ( Unaudited) |
|
|
30.06.2015 |
|
Segment revenue |
|
|
Pharmaceuticals |
1282.000 |
|
Crop Protection products |
632.800 |
|
|
1914.800 |
|
Less: Inter segment
revue |
0.000 |
|
|
1914.800 |
|
Segment results |
|
|
Profit before interest and tax |
|
|
Pharmaceuticals |
164.400 |
|
Crop Protection products |
78.000 |
|
|
242.400 |
|
Less: |
|
|
Finance cost |
177.400 |
|
Other un – allocable expenditure |
39.700 |
|
Add: Other un-allocable Income |
1.500 |
|
|
|
|
Profit before tax |
26.800 |
|
|
|
|
Capital employed |
|
|
Pharmaceuticals |
7438.300 |
|
Crop Protection products |
2738.700 |
|
Unallocated capital |
(4823.900) |
|
|
|
|
Total |
5353.100 |
CONTINGENT
LIABILITIES:
(Rs. in million)
|
PARTICULARS |
31.03.2015 |
31.03.2014 |
|
|
|
|
|
Bills Discounted with banks |
694.650 |
1124.23 |
|
Estimated amount of contracts remaining to
be executed on capital accounts and not provided for (net of advances) |
92.87 |
72.30 |
|
Disputed demands by excise authorities |
40.13 |
0.000 |
|
Disputed demands by Income Tax Authorities |
37.02 |
37.02 |
|
Bank guarantee issued |
49.40 |
48.90 |
|
Note: During the previous year ended 31st March 2014, the company at its extra ordinary general meeting held on May 17, 2013 decided to cancel / rescind the ESOP scheme. Consequently Rs. 330.560 Million in the trust was received by the company and accounted as other income in previous year. |
||
INDEX OF CHARGE:
|
S.NO. |
CHARGE ID |
DATE OF CHARGE
CREATION/MODIFICATION |
CHARGE AMOUNT SECURED
|
CHARGE HOLDER |
ADDRESS |
SERVICE REQUEST
NUMBER (SRN) |
|
1 |
10557450 |
17/03/2015 * |
750,000,000.00 |
STANDARD CHARTERED BANK |
112, SERENITY, 3RD FLOOR, EAST WING,, KORAMANGALA |
C50136928 |
|
2 |
10532057 |
21/10/2014 * |
480,000,000.00 |
INTERNATIONAL FINANCE CORPORATION |
2121 PENNSYLVANIA N.W., WASHINGTON D.C. 20433, WA |
C34422733 |
|
3 |
10518631 |
26/08/2014 |
400,000,000.00 |
THE RATNAKAR BANK LIMITED |
SHAHUPURI,KOLHAPUR,, KOLHAPUR, MAHARASHTRA - 41600 |
C19630920 |
|
4 |
10512641 |
31/07/2014 |
600,000,000.00 |
STANDARD CHARTERED BANK |
112, SERENITY, 3RD FLOOR, EAST WING,, KORAMANGALA |
C14868863 |
|
5 |
10460074 |
30/10/2013 |
200,000,000.00 |
ICICI BANK LIMITED |
ICICI BANK TOWERS, BANDRA KURLA COMPLEX,, MUMBAI, |
B89482756 |
|
6 |
10458011 |
25/10/2013 |
250,000,000.00 |
KOTAK MAHINDRA BANK LIMITED |
36-38A, NARIMAN BHAVAN, 227,D,, NARIMAN POINT,, M |
B88695663 |
|
7 |
10381047 |
09/12/2014 * |
150,000,000.00 |
ADITYA BIRLA FINANCE LIMITED |
INDIAN RAYON COMPOUND,, VERAVAL, GUJARAT - 362266, |
C53610671 |
|
8 |
10345467 |
21/03/2013 * |
300,000,000.00 |
ICICI BANK LIMITED |
ICICI BANK TOWERS, BANDRA KURLA COMPLEX BANDRA EA |
B72588262 |
|
9 |
10340869 |
21/03/2013 * |
300,000,000.00 |
EXPORT IMPORT BANK OF INDIA |
CENTRE ONE BUILDING, WORLD TRADE CENTRE COMPLEX,, |
B72125412 |
|
10 |
10338703 |
27/02/2012 |
150,000,000.00 |
YES BANK LIMITED |
9TH FLOOR, NEHRU CENTRE, DISCOVERY OF INDIA,, DR. |
B33491242 |
* Date of charge modification
FIXED ASSETS:
·
Land
·
Building
·
Plant and Machinery
·
Computer
·
Vehicles
·
Furniture and Fixture
PRESS RELEASES
Q1 FY15-16 Earnings
Release
Mumbai, July 29, 2015: Hikal Limited, a preferred long-term partner for leading global life sciences companies, announced its financial results for the first quarter ended 30th June 2015.
• Net sales up 1% to Rs. 1910.000 Million as compared to Rs. 1900.000 Million in the corresponding period of the previous year.
• Pharmaceutical sales up 6% to Rs. 1280.000 Million as compared to Rs. 1210.000 Million in the corresponding period of the previous year.
• Crop protection sales down 9% to Rs. 630.000 Million as compared to Rs. 690.000 Million in the corresponding period of the previous year.
• EBITDA was Rs. 360.000 Million, similar to corresponding period of the previous year.
• Net Profit was Rs. 20.000 Million after provision for exchange loss of Rs. 60.000 Million on foreign currency working capital loans. The net profit was Rs. 60.000 Million in the corresponding period of the previous year.
Commenting on the results, Jai Hiremath, Chairman and Managing Director, Hikal Limited. said, “Our sales revenue for the first quarter was similar as compared to the previous year. Our crop protection business declined in revenues due to severe de-stocking by our customers. Our pharmaceutical division sales were up by 6% on year-on-year basis due to higher sales volumes. We expect pharmaceutical division to improve in the quarters to come. We have maintained our margins through increased volumes supported by operational efficiencies. Our finance costs went down by 15% as a result of a positive re-rating by our credit rating agency. We had an unrealized notional foreign exchange loss on working capital to the tune of Rs 60.000 Million. Profit before tax adjusting for exchange losses and other income has shown a growth of 7%. We expect revenues and profitability to improve over the next few quarters.”
About Hikal:
Hikal is a reliable long-term partner to companies in the Pharmaceuticals, Crop Protection, and Specialty Chemicals industry. The company is in the business of supplying research services, active ingredients and intermediates, manufactured using stringent global quality standards, for its global customers. Hikal’s advanced manufacturing facilities have been inspected and approved by leading multinational companies in the Crop protection and Pharmaceutical sectors. The Crop protection facilities are located at Taloja and Mahad (Maharashtra). Hikal’s RandD facilities are located at Pune. The Pharmaceutical manufacturing facilities are situated in Jigani (Bangalore) and Panoli (Gujarat).
Safe harbor Statement:
Statements in this document relating to future status,
events, or circumstances, including but not limited to statements about plans
and objectives, the progress and results of research and development, potential
product characteristics and uses, product sales potential and target dates for
product launch are forward-looking statements based on estimates and the
anticipated effects of future events on current and developing circumstances
Such statements are subject to numerous risks and uncertainties and are not
necessarily predictive of future results. Actual results may differ materially
from those anticipated in the forward-looking statements. The company assumes
no obligation to update forward-looking statements to reflect actual results,
changed assumptions or other factors.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.65.24 |
|
UK Pound |
1 |
Rs.102.21 |
|
Euro |
1 |
Rs.72.57 |
INFORMATION DETAILS
|
Information
Gathered by : |
PPT |
|
|
|
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
KVT |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
6 |
|
PAID-UP CAPITAL |
1~10 |
5 |
|
OPERATING SCALE |
1~10 |
6 |
|
FINANCIAL
CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
6 |
|
--PROFITABILITY |
1~10 |
5 |
|
--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 |
YES |
|
--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.