Recommends dividend of Rs. 6 per equity share of Rs. 10 each (60%) for the financial year 2023-24

Ahmedabad: 10 May 2024: Hester Biosciences Limited, one of India’s leading animal health company, manufacturing vaccines and health products has reported consolidated revenue from operations of Rs. 79.26 crore for the Q4FY24, growth of 18% Y-o-Y from revenue of Rs. 67.30 crore in Q4FY23. Operating profit during the quarter ended March 2024 was reported at Rs. 16.40 crore, 37% growth Y-o-Y from Rs. 11.97 crore in Q4FY23. Net Profit of the company for Q4FY24 was up 12% to Rs. 6.40 crore as compared to the net profit of Rs. 5.71 crore in Q4 FY23. Company has recommended dividend of Rs. 6 per equity share of Rs. 10 each (60%) for the financial year 2023-24, subject to approval of members at the ensuing Annual General Meeting.

Consolidated Financial Highlights

(Rs. Crore)

Consolidated results include operations of subsidiaries from Nepal and Tanzania

Animal Healthcare Division

In Q4 FY24, the Animal Healthcare division experienced a growth which is attributed to:

1. Consistent sales of the Goat Pox vaccine, supporting the preventive vaccination program against the Lumpy Skin Disease in Cattle, and continued supplies of the PPR vaccine for Sheep and Goat for the Government of India’s National Immunisation Programs.
2. Along with vaccines, health product sales experienced a growth as well. It is worth noting, this growth is achieved even after the discontinuation of two products, CurX Injection and iSumovet, totalling to a loss of sales in response to new drug regulations prohibiting the use of Ketoprofen for animal treatment. This growth reflects the division's resilience and ability to adapt and pick the momentum back, despite of challenges which are not under our control.

Poultry Healthcare Division

In Q4 FY24, the Poultry Healthcare division achieved a commendable growth of 22%.

1. This growth trajectory has been consistent throughout the year, with each quarter surpassing the previous in terms of sales performance. Hence, from an annual perspective, the division has demonstrated improved sales compared to the previous years.
2. This turnaround can be attributed to - recouping of the Poultry Industry, the introduction of diverse products to meet the evolving needs of poultry farmers and further capitalising that existing market opportunities.

Petcare Division

In Q4 FY24, the Petcare division experienced a marginal sales dip of ?0.18 crore compared to the previous quarter. However, considering the cumulative performance for FY24, the division achieved a growth of 49%, reaching sales of ?2.64 crore. This growth reflects the culmination of substantial efforts in building a robust foundation, implementing best practices, and delivering high-quality products.

Way Forward

Animal Healthcare

• Anticipating double digit growth in the dairy sector, we aim to capitalise on this trend by expanding our product offerings.
• The small ruminant marketing will also be seeing a growth and we shall be expanding our presence further in this segment.
• We will be introducing 6 new specialised products to meet the evolving needs of the growing market and address the customer needs as well as expand our product portfolio.

Poultry Healthcare

• With the poultry industry stabilising, we foresee growth opportunities driven by increasing demand for poultry products.
• With our focus on innovation, we have acquired technology to develop a modified version of the Infectious Bursal Disease (IBD) vaccine, enhancing protection and safety for chickens.
• We are expanding our poultry division’s product basket by introducing feed supplements, aiming to enrich our offerings and strengthen our market position.

Petcare

• We anticipate reaping the benefits of our critical backend activities in the upcoming year.
• With an expected rise in the pet adoption, we are prepared to capture the market share and meet the evolving needs of pet owners.
• We will introduce new products in therapeutic, supplement and prescription pet food diet segments; distinguishing ourselves and our offerings in the market.

Profitability Analysis

1. Overall gross profit margin in Q4 FY24 increased by 1% compared to Q4 FY23, primarily due to the increase in the proportion of vaccines from 60% to 75% in Q4 FY24.
2. In Q4 FY24, EBITDA increased by 14% in alignment with a growth in sales, resulting in a 19% increase in PAT for the quarter.
3. The total borrowings of the Company has reduced by ?30.76 Crore (19%) during the year.
4. The cash generated from operations has increased by ?9.45 Crore (28%) during the year

Standalone Financial Highlights

Revenues

                                                                                                            (Rs. Crore)

* includes exports of other pharmaceutical products

Forward looking remarks – Hester India, Hester Nepal & Hester Africa

Hester India

We are repurposing and transitioning our BSL 3 facility (which was built to manufacture the drug substance of the COVID-19 vaccine), towards commercial production of veterinary vaccines, thereby further enhancing our manufacturing capacity.

Hester Nepal

Hester Nepal aims to increase the poultry vaccine manufacturing, to cater to the domestic, as well as export needs of Middle and Central Asian countries. This will improve our operational efficiency and reduce dependency on the India plant.

Hester Africa

Hester Africa is geared up to meet the anticipated government orders in the coming financial year, primarily serving East and Central African countries. With our focus on strengthening our presence in the African veterinary sphere by manufacturing animal vaccines against African centric animal diseases, we are set to contribute towards the socio-economic needs of the continent.

In conclusion, we remain dedicated to navigating challenges with a keen focus on attention to detail and the implementation of long-term strategies to ensure sustained growth and success.