Despite a 45% growth in its crop protection segment, Hikal's first quarter net profit fell 66% on forex losses

Mumbai: Chemicals and pharmaceuticals maker Hikal on Friday said its net profit fell 66% at Rs5 crore in the first quarter ended June 2012 due to exchange loss on matured forward/option contracts, reports PTI.

It had a net profit of Rs15 crore in the same period of the previous year.

Net sales increased 16% to Rs165 crore in the quarter as compared to Rs133 crore in the corresponding quarter of the previous fiscal, a company release said.

Sales in crop protection segment were up 45% to Rs69 crore from Rs48 crore in the corresponding quarter of the previous year. Pharmaceutical sales remained largely flat at Rs96 crore, it said.

The EBIDTA for the three months ended June 30 showed a growth of 31% to Rs46 crore from Rs35 crore in the same quarter of the previous year.

Jai Hiremath, Chairman and Managing Director, Hikal, said, "Our crop protection business has grown significantly on the back of increased demand from our customers. Our EBITDA for this quarter has increased considerably by 31%."

Due to significant depreciation of the rupee against the US dollar, our net profit dropped on account of forward contracts and hedges booked in the prior year, he said.

"The effect of these hedges will decrease substantially during the second half of the year. The forecast from our customers for the remaining year is encouraging and we expect to sustain our growth."

Hikal supplies key active ingredients (AI) and intermediates to its customers in US, Europe and Japan. The firm's crop protection facilities are located at Taloja and Mahad in Maharashtra. Its API (active pharma ingredient) and pharmaceutical intermediates manufacturing units are situated in Jigani in Bangalore and Panoli in Gujarat.