Hester Biosciences Ltd reports 46% rise in the Net Profit at Rs. 12.16 crore in Q3FY22

Ahmedabad: 31 January 2023: Leading Animal Healthcare company, Hester Biosciences Ltd reported net profit of Rs. 12.16 crore for Q3FY23, rise of 46% from Rs. 8.33 crore reported in the corresponding period last year. Revenue from operation for the quarter ended December 2022 were up 35% to Rs. 74.94 crore as against revenue of Rs. 55.69 crore in the corresponding quarter last year. Operating Profit during the quarter reported growth of 18% at Rs. 17.79 crore. EPS for the December 2022 quarter was Rs. 14.29 per share.

Animal Healthcare Division

The increase in Q3 sales of Animal Healthcare division is largely attributed to:

a. The increased demand for Goat Pox Vaccine to control the outbreak of Lumpy Skin Disease (LSD) in cattle.

b. The continued growth in sales of health products resulting from the earlier investments in expansion of sales force, territorial expansion and new product introductions.

Poultry Healthcare Division

The Poultry Healthcare division experienced a degrowth of 22% in sales of Q3:

a. Poultry vaccines sales have degrown by 28% as the poultry industry continues to be under pressure due to high feed costs and low product realisations leading to significantly lower new bird placements and poor collection cycles.

b. The degrowth of vaccine sales was partly offset by the continued growth of the poultry health products sales.

Divisional & Product Relevance

The Company has been strategically working on reducing the relevance of any one division or and one product line, whether it is vaccines or health products. From a relevance of 100% of Poultry Healthcare Division, The Company has got the relevance of the division down to a little over 50% in the financial year, till date.

Going further

The Company\'s focus on the various segments would be as follows:

Vaccines:

1. GoI has commenced its PPR disease national immunization program in sheep & goat. Hester being the supplier under the tender, the first supply of PPR vaccine was executed in January 2023. The total order value under the tender agreement is INR 40.68 crore which is to be fully executed by March 2024 in a phased manner as decided by GoI.

2. With LSD as a new challenge in the cattle industry, we would be focusing on LSD awareness programs as well as would promote the annual immunisation against LSD through our Goat Pox vaccine.

3. Indian Veterinary Research Institute (IVRI) has developed vaccines against LSD in cattle and an Avian Influenza in poultry. Hester has entered into agreements to acquire both the technologies.

4. With a view to drive growth in its core veterinary vaccines category, Hester has strengthened its R&D team and lab facilities to work on the development of certain conventional as well as new-age vaccines.

Health Products:

1. The large market for Health Products for poultry as well as large animals is complementary to the vaccine market, given that these target the same customer segments in both the divisions. The company will continue to grow the health products business by increasing the field force, improving the productivity of the field force, and introducing new product to meet the unmet as well as the emerging market needs in both the divisions.

User :- Gopal Modi

Email :-gopal@coldcococonsultancy.com