- 25 Apr 2022
- ICICIdirect Research
Hikal receives Taloja facility closure noticeHIKAL - 263 Change: -19.00 (-6.75 %)
News: Hikal has received a notice from the Maharashtra Pollution Control Board for the closure of the company’s manufacturing unit located at MIDC Taloja, within 15 days of the receipt of the said direction. The Company is taking appropriate legal measures and seeks relief from closure notice.
Views: Hikal had received closure notice for Taloja unit in February,2022 for which, Bombay high court granted reprieve to Hikal against closure notice from MPCB. Post personal hearing with MPCB on 1st March, 2022, Hikal has received the plant closure directive for the Taloja unit which had contributed ~ Rs 260 crores (15% of the turnover in FY21). Although prolonged out and out shut down is unlikely (Hikal has successfully defended claims in the past also) this would act as an overhang till Q4 earnings call.