8 June 2021: Leading animal healthcare company, Hester Biosciences Ltd reported a standalone net profit of Rs. 8.86 crore for the Quarter ended March 2021 as against net profit of Rs. 5 crore in the corresponding period last year – growth of 77%. Net sales for the Q4FY21 was reported at Rs. 63.16 crore, growth of 52% as compared to net sales of Rs. 41.43 crore in the corresponding period last year. EPS for Q4FY21 was reported at Rs. 10.41 per share. Company is able to maintain healthy margins; EBITDA Margin was reported at 32.62% and Net Profit margin at 14.03% in Q4FY21. The Board of directors has recommended a dividend of INR 10.00 per equity share (100%) for FY21, subject to the approval of the shareholders. This dividend recommendation is in line with the company’s dividend policy to distribute a minimum of 18% of the PAT.
Business Overview of Hester India for FY21
1. The year FY21 has been in line with the financial forecasts and the budgets.During FY21, the overall topline grew by 23% compared to the topline of FY20.
a. Domestic sales have registered a growth of 55% in Q4FY21 and 29% in FY21. There was a steep rise in local demand, mainly for the poultry vaccines and health products. Bird-flu incidences in the poultry led towards heavy usage of preventive and curative medication which led an increase in the demand.
b. Export sales have registered a marginal growth of 3% in Q4FY21 and a marginal degrowth of 4% in FY21. The main reason for the exports remaining flat in the year was a more or less stand-still in airlines cargo movement due to covid
2. While quarter to quarter gross margins have always been oscillating within a band, the overall year’s EBIDTA margins have improved.
1. Rationalising of product mix continued during the year, besides adding newer products.
2. Marketing and administrative expenses continued to show a downward trend, thereby ensuring a healthier bottom line.
Dividend for the year FY21
The Board of directors has recommended a dividend of INR 10.00 per equity share (100%) for FY21, subject to the approval of the shareholders. This dividend recommendation is in line with the company’s dividend policy to distribute a minimum of 18% of the PAT.
1. Registration process continues for the Classical Swine Fewer vaccine, Lumpy skin disease vaccine and Sheep Pox vaccine. We hope to commence the commercial production and marketing for all the three vaccines by December 2021.
2. The recently launched Herbal products division is expected to give substantial results in increasing the top-line this financial year.
The over-all poultry and animal health business of Hester is slated to grow at a faster rate than what it has been growing in the last few years. This growth will be due to increase the product range as well as due to adding geographical territories.
Status on Hester’s initiatives in developing Covid-19 vaccine
Collaboration with IIT Guwahati
· On 15 April 2020, Hester signed an agreement with IITG to develop a vaccine against Covid-19.
· IITG is working towards developing the recombinant vaccine candidate, based on which, Hester shall take the project further from developing the master seed up to commercially manufacturing the vaccine.
MOU with Bharat Biotech
· On 27 May 2021, an MOU was signed between Bharat biotech and Gujarat Covid Vaccine Consortium (GCVC) of which Hester is a part.
· The MOU was towards contract manufacturing of the Drug Substance for Covaxin, for Bharat Biotech.
· Hester shall provide the complete infrastructure at its Gujarat plant for the manufacturing of the Drug Substance.
· The project is progressing as per the timeline.
User :- Gopal Modi