Hester Biosciences Ltd — Earnings Release 2020

Jul 31, 2019

Press Release

Page 1 of 2

31 July 2019

Q1FY20 Results: Sales up by 11%

Financial Highlights

	Q1FY20	Q1FY19	Growth	FY19
Net Sales (INR Million)	424.26	382.60	11%	1711.87
Net Profit (INR Million)	97.97	96.84	1%	438.52
EPS (INR)	11.52	11.38	1%	51.55

Revenue Growth in Q1FY20 INR Million - Division

	Q1FY20		Q1FY19
Division	Sales	Contribution	Sales	Contribution	Growth
Poultry Health Care	333.51	79%	327.01	86%	1.99%
Animal Health Care	55.61	13%	36.21	9%	53.58%
Other	35.14	8%	19.37	5%	81.36%
TOTAL	424.26	100%	382.60	100%	10.89%

Business Overview

Hester India

• 1. The Quarter has been satisfactory over all, in terms of achieving targets.
• 1. In Q1FY20, there has also been an impact on the sales of Poultry Health Care Division due to the steep rise in maize prices. The high cost of feed has forced the farmers to divert their liquidity towards financing the higher cost of feed rather than spending on health products.
• 1. In the Animal Health Care Division, we met our targets. The relevance of this division has been increasing which is in line with our objectives.
• 1. There is a marginal increase in the absolute Net Profit in Q1FY20 as against Q1FY19.

Hester Nepal

• 1. There has been a revenue growth of 64% in Q1FY20 as compared to Q1FY19. Supply of PPR vaccine against global tenders has contributed towards majority of this revenue growth.
• 1. Marketing authorisation for 12 vaccines including 5 inactivated vaccines have been received, which will further help boost domestic sales in Nepal.

Texas Lifesciences

• 1. Texas has registered a sales growth of 87.65% in Q1FY20 as against Q1FY19.
• 1. Capacity expansion for animal health products is being planned at Texas, to cater the increasing requirement of Hester as well as additional business.

Hester Africa

The progress of the manufacturing facility is going on as per schedule. We are currently in the construction phase.

Q1FY20 Key Financials

Page 2 of 2

Hester INDIA
Profitability Analysis
Particular	Q1FY20	Q1FY19	Up/(Down)
GP Margin	69.13%	67.09%	2.04%
EBIDTA Margin	39.84%	38.57%	1.27%
NP Margin	23.09%	25.31%	(2.22%)
EPS in INR Non Annualised	11.52	11.38	0.14

Hester NEPAL
Financials in INR Million
Particular	Q1FY20	Q1FY19	Growth
Net Sales	23.93	14.58	64.14%
Net Profit / (Loss)	(11.21)	(4.36)

Texas Lifesciences

Financials in INR Million
Particular	Q1FY20	Q1FY19	Growth
Net Sales	25.91	13.81	87.65%
Net Profit / (Loss)	2.05	(4.08)	150.16%

Rajiv Gandhi Hester Biosciences Limited CEO & Managing Director