Hester Biosciences Q2 and H1 FY22 Net Profit Up by 16% and 35%

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.

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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)

Revenue from operations56.5953.626%115.1092.5024%
Net Profit11.7310.1316%24.0117.7535%
EPS (In INR) (not annualised)13.8411.9016%28.2220.8735%

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)

Poultry Healthcare41.3834.3420%85.8464.1734%
Animal Healthcare15.2114.038%25.6120.9322%
License fees &services5.25(100%)3.657.40(51%)


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Profitability Analysis

Gross Profit Margin61.43%59.38%2.05%60.19%61.65%(1.46%)
EBITDA Margin30.28%32.59%(2.31%)30.66%33.29%(2.63%)
Net Profit Margin20.80%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

Return on Equity18.62%18.81%(0.19%)18.99%16.48%2.51%
Return on Assets15.66%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:
  5. Creation of additional infrastructure for bulk antigen production for animal vaccines, completion expected in Q4FY22
  6. 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.

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

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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