Hester Biosciences Q4FY21 Results: Consolidated profit rises 111.9% to Rs 10 crore

Hester Biosciences on Tuesday, June 8, 2021, reported a 111.97 per cent Year-on-Year (YoY) rise in the consolidated profit of Rs 10.09 crore for the quarter ended March 31, 2021. It had posted a profit of Rs 4.76 crore in the corresponding quarter of the previous financial year. Sequentially, the profit stood at Rs 12.86 crore in the previous quarter ended December 31, 2021.

The animal and poultry vaccines manufacturing company Hester's revenue from operations grew 47.11 per cent to Rs 64.17 crore in the reported quarter compared to Rs 43.62 crore posted last year. Sequentially, the revenue stood at Rs 56.89 crore in the previous quarter ended December 31, 2021.

The company has reported EPS of Rs 11.87 for the quarter ended March 31, 2021, as compared to Rs 15.13 for the quarter ended December 31, 2020. EPS stood at Rs 5.60 in the quarter ended March 31, 2020. The company has reported EPS of Rs 40.79 for the 12 months period ended March 31, 2021, as compared to Rs 36.44 for the 12 months period ended March 31, 2020.

The Board of Directors has recommended a dividend of Rs 10 per equity share for the financial year 2020-21 (FY21), subject to the approval of the shareholders in the ensuing Annual General Meeting. This dividend recommendation is in line with the company's dividend policy to distribute a minimum of 18 per cent of the PAT

The company said that the financial year was in line with the financial forecasts and the budgets. During FY21, domestic sales have registered a growth of 55 per cent in Q4 FY21 and 29 per cent in FY21. There was a steep rise in local demand, mainly for poultry vaccines and health products. Bird-flu incidences in the poultry led towards heavy usage of preventive and curative medication which led to an increase in the demand.

Export sales have registered a growth of 3 per cent in Q4 FY21 and a de-growth of 4 per cent in FY21. The main reason for the exports remaining flat in the year was a more or less stand-still in airlines cargo movement due to COVID-19. While quarter to quarter gross margins have always been oscillating within a band, the overall year's EBIDTA margins have improved.

The firm said, it is rationalising of product mix continued during the year, besides adding newer products. Marketing and administrative expenses continued to show a downward trend, thereby ensuring a healthier bottom line.

In its outlook, the company said, the registration process continues for the Classical Swine Fewer vaccine, Lumpy skin disease vaccine and Sheep Pox vaccine. We hope to commence the commercial production and marketing for all three vaccines by December 2021. Meanwhile, the recently launched Herbal products division is expected to give substantial results in increasing the top-line this financial year.

The overall poultry and animal health business of Hester is slated to grow at a faster rate than what it has been growing in the last few years. This growth will be due to an increase in the product range as well as due to adding geographical territories.

Besides, the board has also approved the resignation of Mr. Chetas Patel from the post of Chief Financial Officer (KMP) of the Company with effect from the close of the office hours on June 9, 2021. It also approved the appointment of Mr. Nikhil Jhanwar as a Chief Financial Officer (KMP) of the Company with effect from June 9, 2021. Mr Jhanwar is a chartered accountant and holds a degree of Bachelor of Commerce from Mumbai University. Nikhil has more than 16 years of experience, particularly in the fields of auditing, accounting advice, taxation. Nikhil was earlier working with S R B C & CO LLP.

The board also approved the re-appointment of Ernst & Young LLP as an Internal Auditor of the Company for the financial year 2021-22.