Hester Biosciences Limited, one of India’s leading animal health company, manufacturing vaccines and health products has reported consolidated net profit of Rs. 6.71 crore in Q1FY24 ended June 2023 as against net profit of Rs. 3.56 crore in Q1FY23, growth of 88%. Company reported revenue from operations of Rs. 87.85 crore for the Q1FY24, growth of 73% Y-o-Y as compared to revenue of Rs. 50.70 crore in Q1FY23. Operating profit during Q1FY24 ended June 2023 was reported at Rs. 14.36 crore, 93% growth Y-o-Y from Rs. 7.43 crore in Q1FY23. EPS for Q1FY24 was reported at Rs. 7.89 per share.
Consolidated results include operations of subsidiaries from Nepal and Tanzania. Hester Nepal had a turnover ofRs. 6.54Crore primarily from exports of vaccines with overall Net Profit ofRs. 3.67 Crore during Q1 FY24.Hester Africa has registered export sales of Rs. 1.76 Crore. The Animal Healthcare division grew by 93%. The increase in domestic sales of this division is attributed to: A boost in demand for Goat Pox Vaccine (GPV) consequent to the Government advisory to carry out the annual preventive vaccination program for Lumpy Skin Disease (LSD) in cattle as well as towards the sale of PPR vaccine towards the National PPR Immunization program of GoI. The continued growth in sales of health products resulting from the earlier investments in expansion of sales force, territorial expansion and new product introductions. The Poultry Healthcare division experienced de-growth of 13% in sales of Q1. Domestic sales continued to be hit due to by the recession in the poultry industry, though it is now showing an upward trend. Petcare division which was launched last year, has registered promising sales of Rs. 0.80 Crore in Q1 FY24. Petcare products have been well received in the market as reflected by a steady upward trend in month-on-month sales. During the period, the Company has exported other pharmaceutical products aggregating to Rs. 26.79 Crore. Overall gross profit margin of Q1FY24 reduced by 7% due to the change in product mix. Health products and other pharmaceutical products contributed 56% of total sales in Q1 FY24, as compared to 34% in Q1 FY23. Health products have a lower margin. EBITDA for Q1FY24 has improved by 24% over Q1FY23 due to healthy growth in overall sales. Immunization program against Lumpy Skin disease has been embarked on by all states. Supplies have started, we hope to sell 50 to 60 million doses in this immunisation program in the next three quarters. Hester has commenced the supply of PPR vaccines under the National Immunization program.
The contract is for supply of 300 million doses of PPR vaccine, to be completed by October 2024. With the current change in the drug regulations banning Ketoprofen for animal use, two of our health products; Curx injection &Isomuvet have been impacted. The total sales of these two products were Rs. 5Crore in FY23. While we shall continue with our brands, "we are redefining the formulations for both these products". "We have introduced three new health products in the Poultry Healthcare Division.
The sales are going as per forecast". The Fill-finish facility (Drug Product) has been completed and is currently under regulatory approval process. This expansion, along with the already completed expansion of Bulk Antigen (Drug Substance) production capacity, will double the production capacity in vaccines. Having received the regulatory approval for the BSL-3 facility we are in the process of re-purposing the facility to some other human or veterinary vaccine. The facility is suitable for manufacturing the bulk antigen (Drug Substance) for many vaccines. "We are currently evaluating the market. We also await the approval from BIRAC for re-purposing the facility". Source: Pressrelease
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