Sales up by 9% and 23% for Q3 and 9M FY22, respectively
Hester Biosciences Limited announced the financial results of Q3 and 9M of FY 2021-22. The company achieved an improved operational and financial performance in the period as compared to the corresponding period last year.
The company is constantly investing in geographical market expansion and manpower to achieve the budgeted top-line along with expanding the existing production capacity, a part of which, will be ready from the next quarter.
Financial Highlights (Standalone) (INR Crore)
| Particulars | Q3 | 9M | ||||
| FY22 | FY21 | Growth | FY22 | FY21 | Growth | |
| Revenue from operations | 54.00 | 52.82 | 2% | 169.10 | 145.32 | 16% |
| Net Profit | 10.56 | 13.29 | (21%) | 34.57 | 31.04 | 11% |
| EPS (In INR) (not annualised) | 12.41 | 15.62 | (21%) | 40.64 | 36.49 | 11% |
- Domestic sales have registered a growth of 3% in Q3 FY22, and 24% in 9M FY22.
- Exports have increased by 88% in Q3 FY22 and 14% in 9M FY22.
- Overall, the sales grew by 2% in Q3 FY22, and 16% in 9M FY22, as compared to the corresponding period(s).
Division-wise Revenue Contribution
(INR Crore)
| Particulars | Q3 | 9M | ||||
| FY22 | FY21 | Growth | FY22 | FY21 | Growth | |
| Poultry Healthcare | 41.65 | 39.61 | 5% | 127.49 | 103.78 | 23% |
| Animal Healthcare | 12.35 | 9.90 | 25% | 37.96 | 30.83 | 23% |
| Product Sales | 54.00 | 49.51 | 9% | 165.45 | 134.60 | 23% |
| License fees &services | – | 3.31 | – | 3.65 | 10.72 | (66%) |
| TOTAL | 54.00 | 52.82 | 2% | 169.10 | 145.32 | 16% |
- The revenue during the corresponding previous quarter (Q3 FY21) included a one-time license fee and services of INR 3.31Crore against which there is no income in the current year. This has an impact of 6% on margins during that period.
Product-wise Revenue Contribution (INR Crore)
| Particulars | Q3 | 9M | ||||
| FY22 | FY21 | Growth | FY22 | FY21 | Growth | |
| Vaccines | 38.63 | 38.68 | 0% | 127.49 | 103.78 | 16% |
| Health Products | 15.37 | 10.82 | 42% | 37.96 | 30.83 | 49% |
| Total Sales | 54.00 | 49.51 | 9% | 165.45 | 134.60 | 23% |
- Overall, the sales of vaccines have remained the same in Q3 FY22, but have registered a growth of 16% in 9M FY22. Last year around Q2, Q3 and Q4, there were major disease outbreaks in the poultry industry which led to a spurt in the demand for poultry vaccines. While our vaccines kept the poultry industry immunised from the disease in the last financial year, the over-all poultry health situation has been better this year, thereby registering a normal growth.
- The sales of health products have registered a growth of 42% in Q3 FY22 and 49% in 9M FY22.
Profitability Analysis
| Particular | Q3FY22 | Q3FY21 | Up/(Down) | 9MFY22 | 9MFY21 | Up/(Down) |
| Gross Profit Margin | 57.62% | 68.22% | (10.60%) | 59.37% | 64.04% | (4.67%) |
| EBITDA Margin | 28.21% | 38.97% | (10.77%) | 29.87% | 35.35% | (5.48%) |
| Net Profit Margin | 19.55% | 25.16% | (5.61%) | 20.44% | 21.36% | (0.92%) |
- On the account of COVID restrictions during Q3,there was a reduction in the expenses for traveling and conveyance, which has contributed for better margins in that period.
- There has been an increase in the bottom-line for the period of nine months. This has mainly been the result of focusing on the manufacturing expenses and effective fund management.
Balance Sheet Analysis
| Particular | Q3FY22 | Q3FY21 | Up/(Down) | 9MFY22 | 9MFY21 | Up/(Down) |
| Return on Equity | 16.03% | 20.18% | (4.15%) | 17.50% | 18.05% | (0.55%) |
| Return on Assets | 11.99% | 15.10% | (3.10%) | 13.09% | 14.41% | (1.32%) |
Subsidiaries Results Analysis
- The manufacturing plant at Hester Africa has started the production of vaccines against PPR and CBPP. This project will enable Hester to become a leading player in Africa and contribute significantly towards the social as well as economic growth of Tanzania and of the African continent, besides adding to the top-line and bottom-line of Hester.
- With the increase in the healthcare business, Texas Lifesciences is showing a constant growth in top-line as well as bottom-line, and we are expecting the same to continue for the rest of the year.
- Hester Nepal has seen a turnaround with the execution of export orders. Further, we are expecting to achieve a higher turnover once the FAO tender for the PPR vaccine worldwide comes through. This is expected to come by the end of Q4FY22.
Other developments
- The development of vaccines against Classical Swine Fever (CSF), Lumpy Skin Disease (LSD) and Sheep Pox is going as per the timeline and the commercial production is expected to start by Q1FY23.
- The company is all set to launch the modified Inactivated Coryza Vaccine (an advanced version of the conventional Coryza Vaccine from the existing poultry vaccine portfolio) by the end of Q4 FY22.
- The PPR national tender has been awarded to the company by the Department of Animal Husbandry and Dairying (DAHD) for the eradication of the PPR disease nationally. Under this program, the company will supply the PPR vaccine throughout the country for two years. This will come into implementation by Q4 FY22, giving a significant growth in FY23. The tendered supplies would be for 20crore doses in two years.
- In order to grow and expand the Animal Healthcare division further, the company is in the process of expanding the existing product portfolio, wherein a range of therapeutic products will be introduced by the end of Q4.
- The company is in the final stage of launching the pet division, in terms of identifying the geographies and products. The aim is to commercialise the division by the end of Q4 FY22. The company has started the process of recruitment for the pet division.
- The capacity enhancement projects mentioned earlier are well executed within the declared the timeline:
- The increase of the bulk antigen production capacity for animal vaccines, will be completed before the end of Q4FY22.
- Creation of the fill-finish line for animal vaccines, will be completed by Q3FY23.
Status on Hester’s initiatives in developing Covid-19 vaccine
- The company, along with Gujarat Biotechnology Research Centre (GBRC), Government of Gujarat (GoG), has entered into a licensing agreement with Bharat Biotech to manufacture the Drug Substance for Covaxin.
- The company is currently building the BSL-3 facility suitable for manufacturing the Drug Substance for Covaxin. The construction is going to be completed by Q4FY22.
- The project is progressing well as per the timeline to manufacture up to 70 lakh doses per month, equivalent Drug Substance for Bharat Biotech.
- The impact on the top-line could be up to over a 100% growth, with this project going on-stream.
Corporate Comm India (CCI Newswire)
