Hester Biosciences Limited Q2 and H1 FY22 Results

New Delhi, November 06, 2021: Hester Biosciences Limited, today announced the financial results of Q2 and H1 of FY 2021-22. The company achieved an improved operational and financial performance in the period as compared to the corresponding period last yearThe market and economic recovery has supported well for the growth of the poultry and large animal health industry and is expected to continue growing in the coming period. The company is constantly investing in geographical market expansion and in manpower to achieve the budgeted top-line.

Financial Highlights (Standalone)                                                                                                      (INR Crore)

Particulars	Q2			H1
	FY22	FY21	Growth	FY22	FY21	Growth
Revenue from operations	56.59	53.62	6%	115.10	92.50	24%
Net Profit	11.73	10.13	16%	24.01	17.75	35%
EPS (In INR) (not annualised)	13.84	11.90	16%	28.22	20.87	35%

 

The results of Q2 &H1 FY22 have been in line with the financial forecasts and the budgets

·         Sales for Q2 FY22 and Q1 FY22 grew by 6% and 50% with overall H1 FY22 being higher by 24% as compared to corresponding periods.

·         Overall, the sales of vaccines have registered a growth of 13% in Q2 FY22 and 26% in H1 FY22, and the sales of Health Products have registered a growth of 31% in Q2 FY22 and 53% in H1FY22.

·         Domestic sales have registered a growth of 21% in Q2 FY22 and 38% in H1FY22. There is marginal decrease in export sales in Q2 and H1 FY22. Export orders are affected due to restricted cargo movements globally.

Division-wise Revenue Contribution

(INR Crore)

Particulars	Q2			H1
	FY22	FY21	Growth	FY22	FY21	Growth
Poultry Healthcare	41.38	34.34	20%	85.84	64.17	34%
Animal Healthcare	15.21	14.03	8%	25.61	20.93	22%
License fees &services	–	5.25	(100%)	3.65	7.40	(51%)
TOTAL	56.59	53.62	6%	115.10	92.50	24%

Profitability Analysis

Particular	Q2FY22	Q2FY21	Up/(Down)	H1FY22	H1FY21	Up/(Down)
Gross Profit Margin	61.43%	59.38%	2.05%	60.19%	61.65%	(1.46%)
EBITDA Margin	30.28%	32.59%	(2.31%)	30.66%	33.29%	(2.63%)
Net Profit Margin	20.80%	18.89%	1.91%	20.86%	19.19%	1.67%

·         There has been an increase in the bottom line. This has mainly been the result of focusing on the manufacturing expenses and effective fund management.

·         There have been fluctuations on the gross margins and EBIDTA due to the rationalisation of the product mix and an increased contribution of health products to the overall product portfolio.

Balance Sheet Analysis

Particular	Q2FY22	Q2FY21	Up/(Down)	H1FY22	H1FY21	Up/(Down)
Return on Equity	18.62%	18.81%	(0.19%)	18.99%	16.48%	2.51%
Return on Assets	15.66%	14.67%	0.99%	15.97%	12.85%	3.12%

 

 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 project is progressing well as per the timeline to manufacture up to 7 million doses per month, equivalent Drug Substance for Bharat Biotech.

Other developments

1.     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 byQ1FY23.

2.     The newly introduced range of herbal products is performing well and has started contributing in the topline.

3.     The company is foreseeing the poultry and animal health business to grow at a faster rate than earlier due to introductions of new products, constant improvements in product mix and horizontal expansion of markets.

4.     Capacity enhancement projects are under execution. This comprises of two projects:

1.     Creation of additional infrastructure for bulk antigen production for animal vaccines, completion expected in Q4FY22

2.     Creation of a state-of-the-art fill-finish line for animal vaccines, completion expected in Q3FY23

This expansion will double our existing capacity of 4.8 billion doses a yearfor veterinary vaccines.

5.     The company is working on towards introducing a Pet Healthcare Division.

Appointment of additional Directors on the Board of Hester Biosciences Limited

The board of the company has been expanded by taking in two additional directors.

1.     Priya Gandhi, Executive Director

2.     Ameet Desai, Independent Director

 Profile of Priya Gandhi

Priya Gandhi joined Hester Biosciences in the year 2016 and has worked since then from being an officer to a Deputy Director, before being inducted in the board. She is currently part of the team which is involved in designing Hester’s strategic direction besides being involved in day-to-day business operations. This entails coordinating across all organisational functions, implementing policies as well as ensuring that business objectives and the company philosophy tricklesall the way down in the organisation. In addition, she also directs the company’s communication and brand management.

She has played an active role in setting up the manufacturing plant and the business activities in Hester Africa. Priya Gandhi has done her Under-Graduation from Srishti School of Art, Design and Post-Graduation in Management for Family Business from Indian School of Business (ISB), Hyderabad. Outside work, Priya Gandhi is a trained classical dancer (in Bharatanatyam). After earning a formal education in the form in 2006, she continues to practice it and give performances since then. Priya Gandhi is the daughter of Rajiv Gandhi & Nina Gandhi and belongs to the promoter group.

Corporate Comm India (CCI Newswire)