Hikal posts lower net profit at Rs 5.10 cr on account of forex loss

MUMBAI: Hikal, a pharmaceutical and crop protection product manufacturing firm, reported a lower net profit on account of forex loss.

During the three months period (April-June), company's net profit plunged 64.8 per cent to Rs 5.10 crore from Rs 14.50 crore in the corresponding period of previous year as the company provided Rs 15.37 crore for foreign exchange loss as compared to Rs 1.99 crore in the last period.

However, the earnings before interest, depreciation and amortization (EBITDA) rose by 32 per cent to Rs. 45.52 crore from Rs. 34.48 crore.

Jai Hiremath, chairman & managing director, said, “Due to the significant depreciation of the Rupee versus the US dollar, our net profit has decreased on account of the forward contracts and hedges booked in the prior year. 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.”