Hikal drops after MPCB orders closure of Taloja unit

Hikal skid 5.42% to Rs 395 after Maharashtra Pollution Control Board (MPCB) on 22 April 2022 ordered the company to shut its manufacturing unit in MIDC Taloja, Raigad, within 15 days.

The Taloja unit contributes approx. Rs 260 crore amounting to around 15% of the turnover of the company for the FY 2020-21. The company said it is taking appropriate legal measures as advised by counsels before the Pollution Board as well as Courts to remedy the situation and seek reliefs against the closure directions.

On 16 February 2022, Hikal had informed the exchanges about the receipt of a notice from the Maharashtra Pollution Control Board (MPCB) for closure of the firm's manufacturing unit located at MIDC Taloja, Raigad. The closure notice was issued in view of certain alleged non-compliances of the conditional consent to operate and the recent Surat issue.

Later, the Bombay High Court had set aside the impugned order of closure issued by MPCB. The writ petition filed by the company was also disposed by the Bombay High Court. The MPCB had been directed by the High Court to grant fresh personal hearing to the company in the matter.

Hikal is engaged in the manufacturing of various chemical intermediates, specialty chemicals, active pharmaceutical ingredients (APIs) and contract research activities.

The company's consolidated net profit rose 12.21% to Rs 45.20 crore on a 9.66% increase in sales to Rs 506.62 crore in Q3 FY22 over Q3 FY21.

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