Company records 28 per cent rise in revenue from operations to Rs. 158.31 crore in H1FY24.
Hester Biosciences Limited, one of India’s leading animal health company, manufacturing vaccines and health products has reported consolidated net profit of Rs. 10.75 crore in H1FY24 ended September 2023 as against net profit of Rs. 10.16 crore in H1FY23, growth of 6 per cent. Company reported revenue from operations of Rs. 158.31 crore for the H1FY24, growth of 28 per cent Y-o-Y as compared to revenue of Rs. 123.85 crore in H1FY23. EBITDA during H1FY24 ended September was reported at Rs. 27.58 crore, 37per cent growth Y-o-Y from Rs. 20.18 crore in H1FY23.
Consolidated results include operations of subsidiaries from Nepal and Tanzania. Hester Nepal had a turnover of Rs 0.73 Crore in Q2 FY24, primarily from domestic sales of vaccines with overall Net Loss of Rs. 0.71 Crore. The overall impact of exports and international tenders has also been felt at Nepal, but we are neutralising that impact by focusing on domestic business which is showing a lot of potential.
Animal Healthcare Division
1. In Q2 FY24, the Animal Healthcare division experienced a 16 per cent decline in sales mainly due to the uneven sales of Goat Pox Vaccine. There was an unprecedented surge in demand for the Goat Pox Vaccine (GPV) in Q1 FY23 in response to an outbreak of Lumpy Skin Disease (LSD) in cattle.
2. It is important to note that, GPV sales got distributed across both quarters of H1 FY24, in contrast to the previous year where the GPV sales were concentrated in Q2. The overall sales of GPV for H1 FY24 have maintained consistency with figures from H1 FY23.
Poultry Healthcare Division
In Q2 FY24, the Poultry Healthcare division saw a 4 per cent decrease in overall sales.
1. Domestic vaccine sales experienced a growth of 6 per cent, marking a significant turnaround after six consecutive quarters of decline, attributable to improved sales operations and better farm economics.
2. In contrast, there was a substantial 43 per cent reduction in export sales. This decline in exports was attributed to foreign exchange constraints in African countries, thereby reducing their purchasing ability, which led to the degrowth.
Petcare Division
The Petcare division, launched last year, has demonstrated impressive performance in Q2 FY24, achieving sales of Rs 0.94 Crore, growing 98 per cent as compared to Q2 FY23. This achievement is attributed to a consistent trend in the Petcare segment, driven by successful expansion and increased market penetration into new territories.
Overall gross profit margin was maintained at 69 per cent in Q2 FY24. EBITDA and PAT de-grew by 24 per cent and 34 per cent, respectively in Q2 FY24 due to various factors:
Further rationalization of product mix.
ii. Withdrawal of 2 products in Animal Healthcare division due to change in drug regulations.
iii. The overall focus to increase the sales of health products in both the divisions to address a wider market.
Product segment updates:
Vaccines sales:
1. All states in India have initiated an immunization program targeting Lumpy Skin Disease through the Goat Pox Vaccine. The distribution of supplies of GPV has commenced, and we anticipate selling between 3 to 3.5 Crore doses over the course of the next two quarters.
2. In Q1 FY24, Hester initiated the distribution of PPR vaccines as part of the National Immunization program. The contract entails the supply of 30 Crore doses of PPR vaccine, with completion expected by October 2024.
