Hikal Q1 Review - Stellar Numbers But Upside Priced In: ICICI Direct

A lab technician prepares samples. (Photographer: Paul O'Driscoll/Bloomberg News)

Hikal Q1 Review - Stellar Numbers But Upside Priced In: ICICI Direct

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BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Direct Report

Hikal Ltd.'s Q1 FY22 revenues grew a robust 29.5% YoY to Rs 456.8 crore on the back of strong growth across both segments.

Pharma posted 28.3% YoY growth to Rs 274 crore whereas crop protection grew 31.3% YoY to Rs 182.7 crore.

Ebitda margins expanded 697 basis points YoY, 44 bps QoQ to 21% amid lower staff expenses stemming from better operational leverage.

Subsequently, Ebitda grew 82.3% YoY to Rs 95.8 crore. Profit after tax grew 236% YoY to Rs 50.5 crore.

Q1 performance was above our estimates across all fronts.

Q1 margin performance showcases Hikal's focus on high margin products and backward integration.

Click on the attachment to read the full report:

ICICI Direct Hikal Q1FY22 Result Update.pdf

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