INDIAN NEWS & TIMES

Wednesday, November 22, 2017

1428906254-1812

    • Net Sales for Q2FY18 is recorded at INR 38.48 Cr as compared to INR 30.17 Cr for the previous corresponding period, thereby registering a growth of 27.53%.
    • Net Profit for Q2FY18 is recorded at INR 8.86 Cr as compared to INR 5.99 Cr for the previous corresponding period, thereby registering a growth of 47.85%.
    • Earnings Per Share for the Q2FY18 stands at INRN 10.41 as compared to INR 7.04 for Q2FY17.

H1 Highlights

  • Net Sales for H1FY18 is recorded at INR 67.52 Cr as compared to INR 60.89 Cr for the previous corresponding period, thereby registering a growth of 10.89%.
  • Net Profit for H1FY18 is recorded at INR 15.04 Cr as compared to INR 12.01 Cr for the previous corresponding period, thereby registering a growth of 25.27%.
  • Earnings Per Share for H1FY18 stands at INR 17.68 as against INR 14.12 for H1FY17.

Business Overview

  • The sales in the Poultry divisions grew at 12.21% while in the Large Animal divisions it grew at 173.90% in Q2FY18.
  • Domestic sales grew by 37.03% while exports decreased by 15.84% in Q2FY18. While the growth is domestic market sales is attributed to deeper market penetration as well as in being awarded tender businesses in the large animal segment, the drop in exports is mainly due to:

o   Slower pace of international tenders

o   Diversion of large animal vaccines to execute domestic tender business

  • We are in the process of planning towards unexpected tender businesses thereby creating an internal system by which we would not have to divert product supplies, but have enough stocks for execution of all orders.
  • The pursuit for improving the bottom line continues which is evident in the results. Increased sales of large animal vaccines as well as the on-going process towards rationalising the product mix are the main drivers, besides working towards improved efficiencies in the over all operations.
  • The diagnostics division has been launched and the contribution to sales is expected from Q4FY18.
  • Nepal plant registered a turnover of INR 1.32 Cr for Q2FY18 and INR 1.94 Cr for H1FY18. There is a net loss of INR 1.90 Cr for H1FY18. The operations have been moving slower than forecasts due to unforeseen internal circumstances towards standardising the production and QC activities. We hope to over come all these hurdles by the end of this financial year.
  • Hester’s wholly owned subsidiary Hester Biosciences Africa Limited is currently undertaking a market survey towards setting up an animal vaccine manufacturing unit in Tanzania, for Africa specific animal diseases. The current timeline for the project is being maintained.