Hester Biosciences Ltd — Interim / Quarterly Report 2021

Oct 31, 2020

31.10.2020

To, BSE Limited Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001

To, National Stock Exchange of India Limited Exchange Plaza, Bandra - Kurla Complex, Bandra (E), Mumbai - 400 051

Scrip Code: 524669

Symbol: HESTERBIO

Respected Sir / Madam:

Subject: Outcome of Board Meeting

This is with reference to our letter dated 23.10.2020 intimating the date of the Board Meeting for consideration of the Standalone and Consolidated Unaudited Financial Results for the quarter and half year ended on 30.092020.

Pursuant to the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we would like to inform you that Board of Directors, in their Meeting held today, have approved the Standalone and Consolidated Unaudited Financial Results for the quarter and half year ended on 30.09.2020.

We attach herewith:

• 1. The approved Standalone and Consolidated Unaudited Financial Results and Limited Review Reports.
• 1. Press Release issued in this regard

We would be publishing the extract of results in the newspaper as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The Board Meeting commenced at 10:30 a.m. and concluded at 11:05 a.m.

You are requested to take the above information on your record.

Sincerely, For Hester Biosciences Limited

Rajiv Gandhi CEO & Managing Director DIN: 00438037

HESTER

I.

Hester Biosciences Limited Head Office Pushpak, 1st Floor Panchvati Circle Motilal Hirabhai Road Ahmedabad 380006 Gujarat, India Phone +9179 26445106

Plant Address

Village Merda-Ardraj Taluka Kadi District Mehsana Gujarat 382721, India Phone +9179 26445105 Email mail@hester.in Toll Free 1800 233 7937 www.hester.in

	UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER/HALF YEAR ENDED ON 30 SEPTEMBER 2020
							In Million INR
Sr.	Particulars		Quarter Ended			Half Year Ended	Year Ended
			30-09-2020 30-06-2020 30-09-2019		30-09-2020 30-09-2019		31-03-2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	1 Net Sales/ Income from Operations	536.23	388.77	413.69	925.01	837.96	1,694.25
$\overline{2}$	Other Income	4.75	4.18	6.54	8.94	19.72	29.27
3	Total Revenue (1+2)	540.98	392.96	420.23	933.94	857.68	1,723.52
$\overline{4}$	Total Expenses	401.11	288.86	325.61	689.96	616.52	1,311.24
	(a) Cost of material consumed	38.96	31.86	48.91	70.83	102.68	211.31
	(b) Purchases of stock-in-trade	54.04	33.52	50.74	87.56	81.36	171.89
	(c) Change in inventories	52.60	(5.72)	(43.23)	46.88	(68.68)	(155.74)
	(d) Employee benefits expenses	75.79	74.47	92.07	150.26	170.44	371.57
	(e) Finance cost	15.73	9.64	6.06	25.37	18.48	50.34
	(f) Depreciation and amortisation expenses	23.91	23.61	23.25	47.51	46.52	93.85
	(g) Other expenses	140.08	121.47	147.81	261.55	265.72	568.03
	5 Profit before tax (3-4)	139.88	104.10	94.62	243.98	241.16	412.29
	6 Tax Expense	38.61	27.86	7.68	66.47	56.24	100.05
	Current tax	38.25	29.06	20.08	67.30	68.49	118.05
	Deffered tax	0.36	(1.19)	(12.40)	(0.83)	(12.25)	(18.00)
$\overline{7}$	Profit for the period (5-6)	101.27	76.24	86.94	177.51	184.92	312.24
	8 Other Comprehensive Income	2.42	(1.00)	(2.30)	1.42	(2.90)	(4.01)
	A (i) Items that will not be reclassified to Profit	3.24	(1.34)	(3.04)	1.90	(3.88)	(5.36)
	or Loss
	(ii) Income Tax realting to items that will not	(0.82)	0.34	0.74	(0.48)	0.98	1.35
	be reclassified to profit or loss
	B (i) Items that will be reclassified to Profit or Loss	$\mathcal{L}_{\mathcal{A}}$	÷.	$\mathbf{r}$		$\mathcal{L}_{\mathcal{A}}$	$\overline{\phantom{a}}$
	(ii) Income Tax realting to items that will bereclassified to profit or loss	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\sim$
	9 Total Comprehensive Income for the period $(7+8)$	103.69	75.25	84.64	178.93	182.02	308.23
	10 Paid-up equity share capital (face value of INR 10)	85.07	85.07	85.07	85.07	85.07	85.07
	11 Reserve as shown in the Audited Balance Sheet of the		$\overline{\phantom{a}}$	÷		÷	1,945.73
	previous vear
	12 Earnings Per Share (of INR 10 each)	11.90	8.96	10.22	20.87	21.74	36.70
	(Not Annualised) - Basic & Diluted
	REPORT ON SEGMENT REVENUE, RESULTS, ASSETS AND LIABILITIES						In Million INR
Sr.	Particulars		Quarter Ended			Half Year Ended	Year Ended
			30-09-2020 30-06-2020 30-09-2019		30-09-2020 30-09-2019		31-03-2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
	1 Segment Revenue
	a. Poultry Healthcare	343.43	298.24	268.65	641.68	602.16	1,203.46
	b. Animal Healthcare	140.35	68.95	90.88	209.30	146.49	308.37
	c. Others	52.45	21.58	54.16	74.03	89.31	182.42
	Total Income from Operations (Net)	536.23	388.77	413.69	925.01	837.96	1,694.25
	2 Segment Results
	(Profit before Finance Cost and Taxes)
	a. Poultry Healthcareb. Animal Healthcare	55.76	63.84	47.65	119.60	174.02	300.70
	c. Others	47.3952.46	28.3321.57	13.8439.19	75.7274.03	29.7755.85	38.39123.54
					269.35
	Total Segment Resultsa. Finance Costs	155.6115.73	113.749.64	100.68	25.37	259.64	462.6350.34
				6.06		18.48
	b. Exceptional Items	$\blacksquare$
	c. Other unallocable expenditure/(income) [Net]Profit before Tax	139.88	104.10	94.62		241.16
					243.98		412.29
	3 Segment Assets
	a. Poultry Healthcare	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	٠	2,081.73	1,926.85	2,148.31
	b. Animal Healthcare	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	211.95	337.21	144.77
	Unallocated Assets				468.25	394.54	457.57
	Total	$\blacksquare$	$\blacksquare$	$\blacksquare$	2,761.93	2,658.60	2,750.65
4	Segment Liabilities
	a. Poultry Healthcare	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	489.03	417.55	603.14
	b. Animal Healthcare				36.78	247.83	33.82
	Unallocated Liabilities	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	82.53	88.64	82.89
	Total	$\blacksquare$	$\blacksquare$		608.34	754.02	719.84

Plant Address

Village Merda-Ardraj Taluka Kadi District Mehsana Gujarat 382721, India Phone +9179 26445105 Email mail@hester.in Toll Free 1800 233 7937 www.hester.in

	UNAUDITED STANDALONE STATEMENT OF ASSETS AND LIABILITIES
				In Million INR
		As at	As at	As at
Sr.	Particulars	30-09-2020	30-09-2019	31-03-2020
		Unaudited	Unaudited	Audited
ı	Assets
Α	Non-current Assets
	(a) Property, plant and equipment	929.22	984.76	960.81
	(b) Intangible Assets	8.74	4.39	8.74
	(c) Capital Work in progress	5.98	8.50	3.93
	(d) Biological Assets other than bearer plants	3.40	2.35	2.90
	(e) Financial Assets
	(i) Investment	414.96	282.19	406.71
	(ii) Loans	53.30	48.66	50.86
	(iii) Other Financial Assets	53.05	36.86	52.37
	(f) Other non-current assets	46.59	49.46	49.34
	Total Non-Current Assets	1,515.24	1,417.17	1,535.66
В	Current Assets	573.19	554.83	604.32
	(a) Inventories
	(b) Financial Assets	516.23	391.79	447.61
	(i) Trade Receivables(ii) Cash & Cash Equivelants	11.99	148.01	47.44
	(iii) Other Bank Balances		4.03	4.46
	(iv) Others		5.83	0.97
	(c) Other Current Assets	5.68	131.81	4.43
	(d) Current Tax Assets	139.60	5.13	105.77
	Total Current Assets	1,246.69	1,241.44	1,214.99
	Total Assets	2,761.93	2,658.60	2,750.65
Ш	Equities & Liabilities
C	Equity
	(a) Equity Share capital	85.07	85.07	85.07
	(b) Other Equity	2,068.52	1,819.51	1,945.73
	Total Equity	2,153.59	1,904.58	2,030.80
	Liabilities
	D Non-current liabilities
	(a) Financial Liabilities
	(i) Borrowings	62.42	102.26	74.45
	(ii) Other financial liabilities	3.03	1.20	1.53
	(b) Deferred tax liabilities (Net)	82.54	88.64	82.89
	(c) Other non-current liabilities
	Total Non-Current Liabilities	147.98	192.11	158.87
E.	Current Liabilities
	(a) Financial Liabilities
	(i) Borrowings	139.78	361.33	318.01
	(ii) Trade Payables	110.29	83.92	121.99
	(iii) Other financial liabilities	138.03	84.70	98.22
	(b) Provisions			0.01
	(c) Other current liabilities	48.76	31.97	22.75
	(d) Current Tax Liabilities (Net)	23.50
	Total Current Liabilities	460.36	561.92	560.98
	Total Liabilities	608.34	754.02	719.84
	Total Equity & Liabilities	2,761.93	2,658.60	2,750.65

Plant Address Village Merda-Ardraj Taluka Kadi District Mehsana Gujarat 382721, India Phone +9179 26445105 Email mail@hester.in Toll Free 1800 233 7937 www.hester.in

	UNAUDITED STANDALONE CASHFLOW STATEMENT
				In Million INR
		As at	As at	As at
Sr.	Particulars	30-09-2020	30-09-2019	31-03-2020
		Unaudited	Unaudited	Audited
Α.	Cash Flow from Operating Activities
	Net Profit Before Tax as Per Profit & Loss statement	243.98	241.15	412.29
	Adjustments For:
	Depreciation and Amortisation Expense	47.51	46.52	93.85
	Bad Debts Written off		0.61	0.62
	(Profit) / Loss on Sale of Property, Plant & Equipments		$\overline{a}$	(5.31)
	Finance Cost	25.37	18.48	50.34
	Interest & Commission Income	(8.33)	(14.33)	(15.38)
	Unrealised Foreign Exchange Gain			(6.39)
	Remeasurement of Net Defined Benefit Plans	1.90	(3.88)	(5.36)
	Operating Profit / (Loss) Before Changes in
	Working Capital	310.44	288.55	524.66
	Adjustments For:
	Trade Receivables	(68.62)	(65.70)	(115.13)
	Inventories	31.13	(69.87)	(119.36)
	Other Current and Non Current Assets	(33.84)	(6.42)	19.75
	Trade Payables	(11.70)	3.43	41.50
	Other Current Liabilities	27.51	9.14	0.95
	Short-term Provisions	(0.01)	(2.59)	(2.58)
	Loans & Advances	(1.47)	2.77	5.43
	Other Financial Liability	39.82	6.99	20.51
	Other Financial Assets		(22.76)	(5.18)
	Cash Generated From Operations	293.27	143.57	370.56
	Net Income Tax (paid) / refunds	(45.06)	(57.75)	(106.24)
	Net Cash Flow from / (used in) Operating Activities	248.21	85.81	264.32
	(A)
В.	Cash Flow from Investing Activities
	Proceeds from sale of Property, Plant & Equipments	÷,	$\overline{\phantom{a}}$	9.81
	Investment in Subsidiary Companies	(8.25)		(124.52)
	Capital Expenditure on Property, Plant & Equipments	(15.73)	(34.25)	(62.47)
	Interest & Commission Income	8.33	14.33	15.38
	Investment in Bank Deposits	3.78	10.22	(23.30)
	Net Cash Flow from / (used in) Investing Activities	(11.87)	(9.70)	(185.10)
	(B)
C.	Cash Flow from Financing Activities
	Proceeds/(Repayment) of Short-term Borrowings	(178.23)	151.96	108.64
	Interest Paid	(25.37)	(18.48)	(50.34)
	Dividend Paid (Including Dividend Distribution Tax)	(56.15)	(71.79)	(71.79)
	Proceeds/(Repayment) of Long Term Borrowing	(12.03)	(10.71)	(39.22)
	Net Cash Flow from / (used in) Financing Activities	(271.78)	50.98	(52.71)
	(C)
	Net Increase / (Decrease) in Cash and Cash	(35.44)	127.09	26.52
	Equivalents $(A+B+C)$Cash and Cash Equivalents at the beginning of the
	year	47.44	20.92	20.92
	Cash and Cash Equivalents at the end of the year
	[Note No. 12]	11.99	148.01	47.44
	Major Components of Cash & Cash Equivelants
	Cash on Hand	2.72	6.64	1.66
	Balance with Banks - On Current Accounts	9.27	141.37	10.78
	Fixed Deposits having maturity of less than 3 Months	$\overline{\phantom{a}}$		35.00
	Total Cash & Cash Equivelants	11.99	148.01	47.44

Notes:

• 1 The Unaudited Standalone Financial Results for the quarter and half year ended on 30 September 2020 were reviewed by the Audit Committee and then approved by the Board of Directors at their meeting held on 31 October 2020.
• 2 The Unaudited Standalone Financial Results have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015.
• 3 Segment wise reporting in accordance with Ind AS 108 is given separately.
• 4 The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

For and on behalf of the Board of Directors

Place: Ahmedabad Date: 31.10.2020

Rajiv Gandhi CEO & Managing Director DIN: 00438037

Plant Address

Village Merda-Ardraj Taluka Kadi District Mehsana Gujarat 382721, India Phone +9179 26445105 Email mail@hester.in Toll Free 1800 233 7937 www.hester.in

	UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER/HALF YEAR ENDED 30 SEPTEMBER 2020
							In Million INR
Sr.	Particulars		Quarter Ended30-09-2020 30-06-2020 30-09-2019			Half Year Ended30-09-2020 30-09-2019	Year Ended31-03-2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Net Sales/ Income from Operations	534.10	398.53	441.98	932.63	889.56	1,832.68
2	Other Income	2.43	6.94	6.97	9.37	12.72	63.66
3	Total Revenue $(1+2)$	536.53	405.47	448.95	942.00	902.28	1,896.34
4	Total Expenses	429.60	326.63	377.82	756.23	700.94	1,483.09
	(a) Cost of material consumed	60.38	46.75	75.15	107.13	151.19	293.59
	(b) Purchases of stock-in-trade	19.16	9.98	20.93	29.14	27.55	65.16
	(c) Change in inventories	59.75	(7.12)	(40.32)	52.63	(67.23)	(161.68)
	(d) Employee benefits expenses	84.20	85.67	93.55	169.87	179.72	406.51
	(e) Finance cost	21.11	15.35	14.12	36.46	33.11	73.70
	(f) Depreciation and amortisation expenses	32.42	31.76	32.27	64.18	64.54	130.72
	(g) Other expenses	152.58	144.24	182.13	296.82	312.06	675.07
5	Profit before tax (3-4)	106.93	78.84	71.12	185.77	201.34	413.25
6	Tax Expense	40.11	28.34	9.05	68.45	58.41	103.24
	Current tax	39.72	29.53	21.45	69.25	70.66	121.67
	Deffered tax	0.39	(1.19)	(12.40)	(0.81)	(12.25)	(18.43)
$\overline{7}$	Profit for the period (5-6)	66.82	50.50	62.08	117.32	142.93	310.02
8	Other Comprehensive IncomeA (i) Items that will not be reclassified to Profit or Loss	19.50	(0.25)	(6.29)	19.251.90	(5.90)	20.48
	(ii) Income Tax realting to items that will not be	3.24(0.82)	(1.34)0.34	(3.04)0.74	(0.48)	(3.88)0.98	(5.36)1.35
	reclassified to profit or loss
	B (i) Items that will be reclassified to Profit or Loss	17.08	0.75	(3.99)	17.83	(3.00)	24.49
	(ii) Income Tax realting to items that will be		$\sim$	÷,	$\sim$	$\sim$
	reclassified to profit or loss
9	Total Comprehensive Income for the period $(7+8)$	86.32	50.25	55.79	136.57	137.03	330.50
	10 Profit for the period attributable to:
	(i) Owners of the Company	66.82	57.15	65.24	123.97	149.11	291.71
	(ii) Non Controlling Interest	0.00	(6.65)	(3.16)	(6.64)	(6.18)	18.32
	11 Other Comprehensive Income for the peiod
	attributable to:
	(i) Owners of the Company	6.48	(0.25)	(6.30)	6.24	(5.90)$\mathcal{L}$	20.48
	(ii) Non Controlling Interest12 Total Comprehensive Income for the peiod	13.02	$\overline{\phantom{a}}$	$\blacksquare$	13.02		(0.00)
	attributable to:
	(i) Owners of the Company	73.30	56.90	58.94	130.20	143.21	312.19
	(ii) Non Controlling Interest	13.02	(6.65)	(3.16)	6.37	(6.18)	18.32
	13 Paid-up equity share capital (face value of INR 10)	85.07	85.07	85.07	85.07	85.07	85.07
	14 Reserve as shown in the Audited Balance Sheet of the	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\sim$	1,925.65
	previous year
	15 Earnings Per Share (of INR 10 each)	7.86	5.94	7.30	13.79	16.80	36.44
	(Not Annualised) - Basic & Diluted
Sr.	REPORT ON SEGMENT REVENUE, RESULTS, ASSETS AND LIABILITIESParticulars		Quarter Ended			Half Year Ended	In Million INRYear Ended
			30-09-2020 30-06-2020 30-09-2019			30-09-2020 30-09-2019	31-03-2020
		Unaudited	Unaudited	Unaudited	Unaudited	Unaudited	Audited
1	Segment Revenue
	a. Poultry Healthcare	343.44	298.24	268.65	641.68	602.16	1,203.46
	b. Animal Healthcare	138.21	78.71	119.16	216.92	198.09	493.42
	c. Others	52.45	21.58	54.17	74.03	89.31	135.80
	Total Income from Operations (Net)	534.10	398.53	441.98	932.63	889.56	1,832.68
$\overline{2}$	Segment Results
	(Profit before Finance Cost and Taxes)a. Poultry Healthcare	55.76		47.65			300.70
	b. Animal Healthcare	19.83	63.848.77	23.59	119.6028.60	185.1429.77	101.28
	c. Others	52.45	21.58	2.89	74.03	19.54	84.98
	Total Segment Results	128.04	94.19	74.13	222.23	234.45	486.96
	a. Finance Costs	21.11	15.35	3.00	36.46	33.11	73.70
	b. Exceptional Items	ä,	ä,	ä,		$\omega$	$\blacksquare$
	c. Other unallocable expenditure/(income) [Net]	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\blacksquare$	$\sim$	$\sim$	$\sim$
	Profit before Tax	106.93	78.84	71.13	185.77	201.34	413.25
	3 Segment Assets
	a. Poultry Healthcare	÷	$\sim$	$\overline{\phantom{a}}$	2,081.73	1,926.85	2,148.31
	b. Animal Healthcare	$\overline{\phantom{a}}$	$\blacksquare$	$\overline{\phantom{a}}$	211.95	337.21	144.77
	Unallocated Assets	$\omega$	ä,	$\overline{\phantom{a}}$	2,043.74	1,222.28	1,551.69
	Total	$\blacksquare$	$\overline{\phantom{0}}$	$\overline{\phantom{a}}$	4,337.42	3,486.34	3,844.77
4	Segment Liabilities
	a. Poultry Healthcare	$\overline{\phantom{a}}$	۰	$\overline{\phantom{a}}$	557.84	353.86	603.14
	b. Animal Healthcare				36.78	247.83	33.82
	Unallocated Liabilities	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	$\overline{\phantom{a}}$	1,658.02	1,038.60	1,197.09
	Total				2,252.64	1,640.29	1,834.05

Plant Address Village Merda-Ardraj Taluka Kadi District Mehsana Gujarat 382721, India Phone +9179 26445105 Email mail@hester.in Toll Free 1800 233 7937 www.hester.in

	UNAUDITED CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES
				In Million INR
		As at	As at	As at
Sr.	Particulars	30-09-2020	30-09-2019	31-03-2020
		Unaudited	Unaudited	Audited
п	Assets
А	Non-current Assets
	(a) Property, plant and equipment	2,442.5349.20	1,409.93	1,368.56
	(b) Right to use Assets(c) Capital Work in progress	8.74		49.99
	(d) Intangible Assets	5.98	386.674.39	741.513.93
	(e) Biological Assets other than the Bearer Plants
	(f) Financial Assets	3.40	2.35	2.90
	(i) Other Financial Assets	53.05	36.86	52.37
	(g) Other Non-current Assets		49.46	49.34
	Total Non-Current Assets	19.96
в	Current Assets	2,582.86	1,889.66	2,268.59
	(a) Inventories	616.52	579.32	639.67
	(b) Financial Assets
	(i) Trade Receivables	544.62		584.36
		348.15	427.98414.75	230.85
	(ii) Cash & Cash Equivelants(iii) Other Bank Balances		4.03	4.46
	(iv) Others		5.83	0.97
	(c) Current Tax Assets	5.69	3.97	4.34
	(d) Other Current Assets	239.58	160.79	111.53
	Total Current Assets	1,754.56	1,596.67	1,576.18
	Total Assets	4,337.42	3,486.34	3,844.77
Ш	Equities & Liabilities
C	Equity
	(a) Equity Share capital	85.07	85.07	85.07
	(b) Other Equity	1,999.71	1,760.98	1,925.65
	Equity attributable to Owners	2,084.78	1,846.05	2,010.72
	Non Controlling Interest	60.58	30.79	54.21
	Total Equity	2,145.36	1,876.84	2,064.93
	Liabilities
D	Non-current liabilities
	(a) Financial Liabilities
	(i) Borrowings	1,019.36	562.15	764.76
	(ii) Other financial liabilities	3.03	1.20	1.65
	(iii) Lease Liabilities	54.28	$\blacksquare$	51.93
	(b) Deferred tax liabilities (Net)	87.85	94.35	88.17
	(c) Deferred Capital Grant	236.22	85.46	59.93
	Total Non-Current Liabilities	1,400.73	743.16	966.44
E.	Current Liabilities
	(a) Financial Liabilities
	(i) Borrowings	186.51	385.51	325.42
	(ii) Trade Payables	124.00	210.29	186.14
	(iii) Other financial liabilities	173.77	115.39	132.82
	(iv) Lease Liabilities		$\overline{\phantom{a}}$	3.22
	(b) Provisions	0.26		0.16
	(c) Other current liabilities	281.45	155.15	165.64
	(d) Current Tax Liabilities (Net)	25.34
	Total Current Liabilities	791.33	866.34	813.39
	Total Liabilities	2,192.06	1,609.50	1,779.84
	Total Equity & Liabilities	4,337.42	3,486.34	3,844.77

Plant Address Village Merda-Ardraj Taluka Kadi District Mehsana Gujarat 382721, India Phone +9179 26445105

Email mail@hester.in Toll Free 1800 233 7937 www.hester.in

	UNAUDITED CONSOLIDATED CASH FLOW STATEMENT			In Million INR
			As at
Sr.	Particulars	As at	30-09-2019	As at
		30-09-2020		31-03-2020
		Unaudited	Unaudited	Audited
Α.	Cash Flow from Operating Activities
	Net Profit Before Tax as Per Profit & Loss statement	185.77	201.34	413.26
	Adjustments For:
	Depreciation and Amortisation Expense	64.18	64.54	132.30
	Bad Debts Written off		0.61	0.62
	(Profit) / Loss on Sale of Property, Plant & Equipments	L.	L.	(5.31)
	Finance Cost	36.46	21.99	76.66
	Interest & Commission Income	(9.37)	(14.33)	(3.73)
	Unrealised Foreign Exchange Gain	÷,	÷.	(6.39)
	Loss on diposal of investment in subsidiary	$\frac{1}{2}$	÷.	0.74
	Preoperative Expenditure Written Off	$\overline{a}$	L.	7.56
	Remeasurement of Net Defined Benefit Plans	1.90	(3.88)	(5.36)
	Operating Profit / (Loss) Before Changes in	278.94	270.27	610.35
	Working Capital
	Adjustments For:
	Trade Receivables	39.74	(111.66)	(249.93)
	Inventories	23.15	(71.47)	(131.82)
	Other Current and Non Current Assets	(98.67)	(11.94)	25.73
	Trade Payables	(62.14)	122.78	98.63
	Other Current Liabilities	115.82	92.00	96.07
	Short-term Provisions	0.10	(2.59)	(2.43)
	Loans & Advances	0.97	(3.26)	1.61
	Other Financial Liability	42.33	86.73	30.84
	Other Financial Assets	(0.68)	(22.76)	(5.18)
	Cash Generated From Operations	339.55	348.11	473.86
	Net Income Tax (paid) / refunds	(45.26)	(58.35)	(109.36)
	Net Cash Flow from / (used in) Operating Activities	294.30	289.76	364.50
	Exchange rate fluctuation arising on consolidation	17.83	(2.96)	18.42
	Net Cash Flow from / (used in) Operating Activities	312.13	286.81	382.92
	(A)
В.	Cash Flow from Investing Activities
	Proceeds from sale of Property, Plant & Equipments	÷,	÷.	9.81
	Capital Expenditure on Property, Plant & Equipments	(407.15)	(349.17)	(734.98)
	Interest & Commission Income	9.37	14.33	3.73
	Investment in Bank Deposits	4.46	10.22	(23.30)
	Net Cash Flow from / (used in) Investing Activities	(393.32)	(324.62)	(744.73)
	(B)
C.	Cash Flow from Financing Activities
	Proceeds/(Repayment) of Short-term Borrowings	(138.92)	160.53	100.44
	Interest Paid	(36.46)	(21.99)	(76.66)
	Dividend Paid (Including Dividend Distribution Tax)	(56.15)	(71.79)	(71.79)
	Proceeds/(Repayment) of Long Term Borrowing	254.60	(20.66)	181.25
	Repayment of Lease Liabilties	(0.87)	÷.	(1.24)
	Receipt of Capital Grant	176.28	$\sim$	54.19
	Net Cash Flow from / (used in) Financing Activities(C)	198.49	46.09	186.19
	Net Increase / (Decrease) in Cash and CashEquivalents $(A+B+C)$	117.30	8.28	(175.62)
	Cash and Cash Equivalents at the beginning of the	230.85	406.47	406.47
	year
	Cash and Cash Equivalents at the end of the year[Note No. 12]	348.15	414.75	230.85
	Major Components of Cash & Cash Equivelants
	Cash on Hand	2.72	6.99	1.75
	Balance with Banks - On Current Accounts	345.43	406.69	194.10
	Fixed Deposits having maturity of less than 3 Months		1.07	35.00
	Total Cash & Cash Equivelants	348.15	414.75	230.85

Notes:

• 1 The Unaudited Consolidated Financial Results for the quarter and half year ended on 30 September 2020 were reviewed by the Audit Committee and then approved by the Board of Directors at their meeting held on 31 October 2020.
• 2 The Unaudited Consolidated Financial Results have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 read with Rule 3 of Companies (Indian Accounting Standards) Rules, 2015.
• 3 Segment wise reporting in accordance with Ind AS 108 is given separately.
• 4 Consolidated Financial Figures include results of following Subsidiary Companies:
  • a) Texas Lifesciences Private Limited
  • b) Hester Biosciences Nepal Private Limited
  • c) Hester Biosciences Africa Limited
  • d) Hester Biosciences Kenya Limited
  • e) Hester Biosciences Tanzania Limited (Step-down Subsidiary)
• 5 The figures for the corresponding previous period have been regrouped/reclassified wherever necessary, to make them comparable.

For and on behalf of the Board of Directors

Place: Ahmedabad Date: 31.10.2020

Rajiv Gandhi CEO & Managing Director DIN: 00438037

Chandulal M. Shah & Co. CHARTERED ACCOUNTANTS

N6, 6th Floor, Wing-A, Safal Profital~e, Opp. Auda Garden, Corporate Road, Prahladnagar, Ahmedabad-380052. Tel. : 079-2960 1085 • (M) 90330 34430 • E-mail : cmshah@cmshah.com • Website : www.cmshah.com

Independent Auditor's review report on Quarterly and Year-to-date Unaudited Standalone financial results of Hester Biosciences Limited pursuant to the Regulation 33 of the SEBI (Listing Obliptlons and Disclosure Requirements) Regulations, 2015, as amended

Review Report To Tile BoCJrd of Directors of Hester Biosciences Limited

Wt! hallt! reviewed the accompanying statement of unaudited nnanclal results of Hester Biosciences Limited (''the company") for the quarter ended 30111 September, 2020 and year-to-date results for the period from l 't April, 2020 to 30111 September, 2020 (''lhe Statement"), attached herewith, being submitted by the company pursuant to the requirements of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended (the "Listing Regulations").

rhis Statement, which 1s the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind A5 34"), prescribed u/s 133 of the Companies Act, 2013 as amended, read with relevant rules Issued thereunder and other accounting principles generally accepted in India. Our responsibility is to issue a Report on the Statement based on our review.

We conducted our review of the Statement in accordance with the Standard on Review Engagements (SRE) 2410 •Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', Issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether Statement is free of material misstatement. A review is limited primarily to inquiries of Company personnel and analytical procedures applied to financial data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared in accordance with applicable accounting standards and other recognized accounting principles and policies has not disclosed the information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in which it is to be disclosed, or that it contains any material misstatement.

We have not audited or reviewed the accompanying financial results and other financial information for the quarter ended June 30, 2020, quarter and half year ended September 30, 2019 and year ended March 31, 2020 which has been solely prepared based on the information compiled by the Management and reviewed/audited by erstwhile auditors.

For, Chandulal M. Shah & Co. Chartered Accountants FRN. 101698W ~ D. Shah

Arpit Partner Membership No. 135188 UDIN ~613.CJ tCfAAAAE.£~~,,

Place: Ahmedabad Date: 31/10/ 2020

Chandulal M. Shah & Co. CHARTERED ACCOUNTANTS

N6, 6th Floor, Wing-A, Safal Profltalre, Opp. Auda Garden, Corporate Road, Prahladnagar1 Ahmedabad-380052. Tel. : 079-2960 1085 • (M) 90330 34430 • E-mall : cmshah@cmshah.com • Website : www.cmshah.com

Independent Auditor's review report on Quarterly end Year-to-date Unaudited Consolidated tlnanclol results of Hester Biosdencos Limited pursuant to the Regulation 33 of the SEBI (listing Obllgatlons and Disclosure Requirements) Regulations, 2015, as amended

Rl'vlew Report To The BoJrd of Directors of Hester Biosciences Limited

W • hdv~ reviewed the accompanying statement of unaudited consolidated financial results of Hester Biosciences limited !"the Holding company") and its subsidiaries (the Holding and its subsidiaries together referred to as "the Group'') for the quarter ended 30lh September, 2020 and V"ar-to-date results for the period from 1'1 April, 2020 to 301 h September, 2020 ("the Statement"), attached herewith, being submitted by the company pursuant to the requirements of Regulation 33 o f thP. SEBI (Listing Obligations and Dlsclosure Requirements) Regulatlons, 2015, as amended (the "Listing Regulations").

I Im Statement, which is the responsibility of the Company's Management and approved by the Board of Directors, has been prepared in accordance with the recognition and measurement plinciples laid down In Indian Accounting Standard 34 "Interim Financial Reporting'' ("Ind AS 34"), prescribed u/s 133 of the Companies Act, 2013 as amended, read with relevant rules issued thereunder and other accounting principles generally accepted in India. Our responsibility is to issue a Report on the Statement based on our review.

We conducted our review of the Statement in accordance with the Standard on Review fngagements (SRE) 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity'', Issued by the Institute of Chartered Accountants of India. This Standard requires that we plan and perform the review to obtain moderate assurance as to whether Statement Is free of material misstatement. A review Is llmlted primarily to Inquiries of Company person nel and analytical procedures applied to financfal data and thus provides less assurance than an audit. We have not performed an audit and accordingly, we do not express an audit opinion.

The statement Includes the results of the following subsidiaries:

• Sr. No. Name of the Company
• l Texas Lifosciences Privilte Limited
• 2 Hester Biosciences Nepal Private Limited
• 3 Hester Biosciences Africa Limited
• 4 Hesler Biosciences Kenya Limited
• s Hester Oiosclences Tanzania Llmltod (Stcpdown ~ubsidiary)

Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement, prepared tn accordance with applicable- accounting standards and other recognized dCCOUnting principles and policies hd~ not disdo!ied tht! information required to be disclosed in t'erms of Regulation 33 of the SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015 including the manner in whkh it is to be disclosed, or th;:it it contains any materi<:1I misstatement.

The consolidated unaudited financial results includes the interim financial statements, financial information & financial results of 4 subsidiaries and 1 stepdown subsidiary which have not been f l! ·e ved/audited by their auditors. whose interim financial statements, financial information & financial results reflect total assets of Rs. 2,162.61 Mn as at 30lh September, 2020 and total revenue of Rs. 61.27 Mn and Rs.. 95.78 Mn, total net loss after tax of Rs. 22.64 Mn and Rs. 49.45 Mn and total comprehensive toss of Rs. 50.20 Mn and Rs. 49.45 Mn for the quarter ended 30lh September. 2020 and for the period from pt April, 2020 to 30th September, 2020, respectively, and net cash Inflows of Rs. 152. 75 Mn for the period from pt April, 2020 to 301 h September, 2020, as considered in the consolidated unaudited financial results.. These financial statements and , other financial information have been certified by the management. All subsidiaries, except (Sr. No 1) are located outside India whose financial resu lts have been prepared in accordance with accounting principles generally accepted m their respective countries ('local GAAP'). The Parent's management has converted the financial results of such subsidiaries from toe.al GAAP to accounting principles generally accepted in India. We have not reviewed these conversion adjustments made by the Parent's management

Our condusion on the statement is not modified in respect of the above matter.

We have not audited or reviewed the accompanylne consolidated financial results and other financ al ' nformation for the quarter ended June 30, 2020. quarter and half year ended September 30, 2019 and year ended Marth 31, 2020 which has been solely prepared based on the infom1ation compiled by the Management and reviewed/audited by erstwhile auditors.

For, Chandulal M. Shah & Co. Chartered Accountants FRN. 101698W

~ D. Shah

Arpit Partner Membership No. 135188 UDIN :- .Zo\35'1WABAAE&113~

Place: Ahmedabad Date: 10/2020

Page 1 of 4

Press Release

31 October 2020

Q2FY21 Sales up by 30%, H1FY21 Sales up by 10%

Q2FY21 Net Profit up by 16%, H1FY21 Net Profit down by 4%

Expect to launch the first Lumpy Skin Disease Vaccine in India in 6 months

Financial Highlights

						INR in Million
Particulars		Q2			H1
	FY21	FY20	Growth	FY21	FY20	Growth
Net Sales	536.23	413.69	30%	925.01	837.96	10%
Net Profit	101.26	86.94	16%	177.51	184.87	(4%)
EPS (In INR)	11.90	10.22	16%	20.87	21.73	(4%)

Division-wise sales in INR Million

		Q2		H1
Particulars	FY21	FY20	Growth	FY21	FY20	Growth
Poultry Healthcare	343.43	268.65	28%	641.68	602.16	7%
Animal Healthcare	140.34	99.77	41%	209.30	166.22	26%
Other	52.47	45.27	16%	74.03	69.58	6%
TOTAL	536.24	413.69	30%	925.01	837.96	10%

Profitability Analysis

Particular	Q2FY21	Q2FY20	H1FY21	H1FY20	FY20
GP Margin	59.38%	65.87%	61.65%	67.38%	66.97%
EBIDTA Margin	32.59%	28.38%	33.29%	34.18%	31.12%
NP Margin	18.88%	21.02%	19.19%	22.06%	18.43%
EPS in INR Non-Annualised	11.90	10.22	20.87	21.73	36.70

Balance Sheet Analysis

Particular	Q2FY21	Q2FY20	Up/(Down)	H1FY21	H1FY20	Up/(Down)
ROE	18.81%	18.26%	0.55%	16.48%	19.41%	(2.93%)
ROCE	24.43%	16.47%	7.96%	21.09%	20.98%	0.10%
ROI	14.67%	13.08%	1.59%	12.85%	13.91%	(1.05%)

Page 2 of 4

Business Overview of Hester India

We have seen an inspiring growth in top-line in Q2FY21. Overall the sales grew by:

• 30% in comparison to Q2FY20
• 10% in comparison to H1FY20
• 38% in comparison to Q1FY21

Analysing the performance through various parameters:

• 1. Poultry Healthcare Division has registered growth of 28% in Q2FY21 and 7% in H1FY21 in comparison to the corresponding period last year. The Animal Healthcare Division has registered growth of 41% in Q2FY21 and 26% in H1FY21. In Q2FY21, we have seen the demand for milk and eggs going up, which directly positively impacted our sales.
• 1. Overall, vaccine sales (poultry and animal divisions) have registered growth of 26% in Q2FY21 and 8% in H1FY21 as compared to the corresponding period last year. The health product sales have registered growth of 51% in Q2FY21 and 22% in H1FY21 as compared to the corresponding period last year.
• 1. Geographically, domestic sales have registered growth of 30% in Q2FY21 and 8% in H1FY21 and the export sales have increased by 36% in Q2FY21 and 25% in H1FY21.
• 1. The National Animal Disease Control Program of the Government of India for Brucella is extended and expected to be implemented by January 2021. This was supposed to have been started from February 2020. This delay is commencement has led to a delay in our sales of the Brucella vaccine which we hope to commence from Q4.
• 1. The territorial expansion within India, done in last few months, has started contributing significantly for both, Poultry as well as Animal Healthcare Division.
• 1. In line with our mandate to reduce dependency on any product, division or geography, we have strategically increased the sales of the health products. Though these products may have a lower gross margin, it will ultimately improve the top line and the bottom line due to higher efficiencies achieved from our sales team.

Going further:

• 1. We expect to grow in the market by expanding our reach, improving our product performances and adding new products and offering new solutions in our portfolio.
• 1. In line with global health practices to move away from antibiotics, Hester has decided to focus on herbal products. Most new products would be natural or herbal in nature for our Poultry as well as Animal division.
• 1. Lumpy Skin Disease (LSD) in cattle is an emerging disease in India which is of economic importance for cattle farmers. Hester is currently working towards developing a vaccine against LSD. We have already received the test license for evaluation of safety & efficacy of the vaccine. We have plans to commercially launch the vaccine within six months. Hester is the only company in India who has an LSD vaccine under development. The vaccine has a good export potential as well. LSD is endemic in most African and Middle Eastern countries. In 2015 and 2016 the disease spread to south-east Europe, the Balkans and the Caucasus. Since 2019, the disease was reported in India as well as in some Asian countries. As there is no treatment for the disease, prevention by vaccination is the only effective means to control the disease.
• 1. Our developmental activities are ongoing for the human Covid-19 vaccine with IIT Guwahati. Animal trials are expected to begin in December 2020. Discussions are on with various human vaccines manufacturing companies to take the vaccine development and trial activities further.
• 1. In view of the various opportunities, including those of Brucella and LSD vaccines, Hester is planning to expand it production capabilities, the details of which would be finalised in the coming days.

HESTER

Page 3 of 4

Business Overview of Hester Nepal

• 1. Revenue for Q2FY21 was recorded at INR 5.49 Mn as against INR 15.15 Mn in Q2FY20.
• 1. Revenue for H1FY21 was recorded at INR 7.12 Mn as against INR 36.67 Mn in H1FY20.

The unavailability of international flights out of Kathmandu due to COVID for most of H1 and the absence of tenders being floated by FAO in the last two quarters has negatively impacted our sales. Efforts are now being put to target domestic Nepalese market, which was also impacted due to COVID. Though tangible results have yet to be seen, the business looks promising in the coming quarters. FAO tenders are also expected to start from Q3.

Financials in INR Million

Particular	Q2FY21	Q2FY20	H1FY21	H1FY20	FY20
Net Sales	5.49	15.15	7.12	36.67	161.80
Net Profit / (Loss)	(5.12)	(13.34)	(25.95)	(24.54)	39.39

Business Overview of Texas Lifesciences

• 1. Revenue for Q2FY21 was recorded at INR 38.06 Mn as against INR 33.82 Mn in Q2FY20.
• 1. Revenue for H1FY21 was recorded at INR 61.28 Mn as against INR 59.73 Mn in H1FY20.

With Hester's increasing focus on health products and Texas Lifesciences manufacturing these products, we foresee a good increase in the top line. Registration of Texas products have started in various African countries.

Financials in INR Million

Particular	Q2FY21	Q2FY20	H1FY21	H1FY20	FY20
Net Sales	38.06	33.82	61.28	59.73	128.03
Net Profit / (Loss)	3.79	3.36	5.26	5.29	10.17

Business Overview of Hester Tanzania

• 1. Revenue for Q2FY21 was recorded at INR 8.64 Mn as against INR 8.83 Mn in Q2FY20.
• 1. Revenue for H1FY21 was recorded at INR 15.57 Mn as against INR 11.99 Mn in H1FY20.

During the period Q2FY21 which was impacted due to COVID, we have focused on creating the infrastructure to penetrate into the market in days to come. Resources have been spent towards creating a distribution and marketing network in Tanzania.

Financials in INR Million

Particular	Q2FY21	Q2FY20	H1FY21	H1FY20	FY20
Net Sales	8.64	8.83	15.57	11.99	27.03
Net Profit / (Loss)	(12.17)	4.88	(8.39)	5.13	(2.68)

Page 4 of 4

Business Overview of Hester Africa

The project has got delayed marginally due to inability of contractors being able to reach Tanzania for installation work. The movement has now begun, and we hope to begin commercial production by mid Q4FY21.

Rajiv Gandhi Hester Biosciences Limited CEO Managing Director