Hester Biosciences Ltd — Interim / Quarterly Report 2022

Aug 12, 2021

12.08.2021

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 04.08.2021 intimating the date of the Board Meeting for consideration of the Standalone and Consolidated Unaudited Financial Results for the quarter ended 30.06.2021.

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 ended 30.06.2021, as recommended by Audit Committee.

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 10:45 a.m. (IST) and concluded at 11:03 a.m. (IST)

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

Sincerely, For Hester Biosciences Limited

Rajiv Gandhi CEO & Managing Director

DIN: 00438037

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

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

CIN L99999GJ1987PLC022333

STATEMENT OF UNAUDITED STANDALONE FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2021

					Amount in INR Million
			Quarter Ended		Year Ended
Sr.No.	Particulars	30 June2021	31 March2021	30 June2020	31 March2021
		Unaudited	Audited(Refer note 6)	Unaudited	Audited
	Income
$\mathbf{1}$	Revenue from Operations	585.05	631.58	388.77	2,084.77
$\overline{2}$	Other Income	10.32	1.20	4.18	16.48
3	Total income	595.37	632.78	392.95	2,101.25
$\overline{4}$	Expenses
	(a) Cost of material consumed	74.92	91.32	45.74	241.75
	(b) Purchases of stock-in-trade	65.09	80.31	33.52	252.09
	(c) Change in inventories of finished goods,traded goods and work in progress	32.44	27.50	(5.72)	40.14
	(d) Employee benefits expense	99.00	97.87	74.47	334.50
	(e) Finance cost	3.67	4.72	9.64	39.47
	(f) Depreciation and amortisation expense	22.98	24.46	23.61	96.33
	(g) Other expenses	132.11	128.42	107.59	496.35
	Total expenses	430.21	454.60	288.85	1,500.64
5	Profit before tax and exceptional items	165.16	178.18	104.10	600.61
6	Exceptional items (refer note 3)		(52.78)		(52.78)
$\overline{7}$	Profit before tax	165.16	125.40	104.10	547.83
8	Tax Expense
	Current tax	49.82	49.78	29.06	163.65
	Deferred tax	(7.03)	(12.97)	(1.19)	(14.83)
	Total tax expense	42.79	36.81	27.87	148.82
$\mathsf{Q}$	Profit after tax	122.37	88.59	76.23	399.01
10	Other Comprehensive Income
	Items that will not be reclassified to Profit or Loss
	Remesurement Gain/(Loss) on Defined Benefit Plans	0.72	0.01	(1.34)	2.86
	Income tax impact	(0.18)		0.34	(0.72)
	Total Other Comprehensive Income	0.54	0.01	(1.00)	2.14
11	Total Comprehensive Income for the period	122.91	88.60	75.23	401.15
12	Paid-up equity share capital				85.07
13	Other Equity				2,290.74
14	Earnings Per Share (Face Value of INR 10 each)(Not Annualised) - Basic & Diluted (INR)	14.38	10.41	8.96	46.90

Notes:

• 1 The standalone financial results of Hester Biosciences Limited (the "Company") have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in their respective meetings held on 12 August 2021.
• 2 The Statutory Auditors have carried out limited review of the standalone financial results of the Company for the quarter ended 30 June 2021.
• 3 Exceptional items during the quarter and year ended 31 March 2021 includes Loss on disposal of Patan Farm aggregating to INR 33.21 million and impairment of interest accrued/ loan to subsidiary aggregating to INR 19.57 million.
• 4 Following are the details of segment wise revenue, results, segment assets and liabilities:

Amount in INR Million
		Quarter Ended		Year Ended
Particulars	30 June	31 March	30 June	31 March
	2021	2021	2020	2021
Segment Revenue
a. Poultry Healthcare	439.93	485.49	298.24	1,558.58
b. Animal Healthcare	145.12	146.09	90.53	526.19
Total Revenue from Operations	585.05	631.58	388.77	2,084.77
Segment Results
a. Poultry Healthcare	130.05	120.54	63.83	388.39
b. Animal Healthcare	28.46	27.84	45.73	201.89
Total Segment Results	158.51	148.38	109.56	590.28
a. Finance Costs	3.67	4.72	9.64	39.47
b. Other unallocable expenditure/(income) (Net)	(10.32)	18.26	(4.18)	2.98
Profit before Tax	165.16	125.40	104.10	547.83
Segment Assets
a. Poultry Healthcare	1,771.67	1,822.53	1,779.04	1,822.53
b. Animal Healthcare	237.33	325.89	194.07	325.89
Unallocated Assets	680.72	671.73	838.15	671.73
Total	2,689.72	2,820.15	2,811.26	2,820.15
Segment Liabilities
a. Poultry Healthcare	123.85	143.65	87.91	143.65
b. Animal Healthcare	3.46	39.59	41.05	39.59
Unallocated Liabilities	63.70	261.10	576.24	261.10
Total	191.01	444.34	705.20	444.34

5 The Code on Social Security, 2020 ("Code") relating to employees benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Group will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

6 The figures for the last quarter are the balancing figures between the audited figures in respect of the full year ending 31 March 2021 and the unaudited published year-to-date figures upto 31 December 2020, being the date of the end of the third quarter, which were subjected to limited review.

For and on behalf of the Board of Directors

CEO & Managing Director DIN: 00438037 Rajiv Gandhi

Place: Ahmedabad Date: 12 August 2021

Chandulal M. Shah & Co. CHARTERED ACCOUNTANTS

A/6, 6th Floor, Wing-A, Safal Profltaire, Opp. Prahladnagar Garden, Corporate Road, Prahladnagar, Ahmedabad-380015. Tel. : 079-2960 1085 • (M) 90330 34430 • E-mall : 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 Regulatlon 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

To,

The Board of Directors of Hester Biosciences limited

• l. We have reviewed the accompanying statement of unaudited financial results of Hester Biosciences Limited for the quarter ended on June 30, 2021 ("the 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").
• 1. This 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 principles laid down in Indian Accounting Standard 34 "Interim Financial Reporting" ("Ind AS 34"), prescribed u/s 133 of the Companies Act, 2013, and other accounting principles generally accepted in India and in accordance with Regulation 33 of the Listing Regulations. Our responsibility is to issue a Report on the Statement based on our review.
• 1. 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.
• 1. 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 Listing Regulations including the manner in which it is to be disclosed or that it contains any material misstatement.

For Chandulal M. Shah & Co. Chartered Accountants FRN No. 101698W

Arpit D. Shah Partner M. No. 135188 UDIN: Vl.3 ~~AA.AAOU3117

Place: Ahmedabad Date : August 12, 2021

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

Plant Address Taluka Kadi District Mehsana Gujarat 382721, India

Email mail@hester.in Village Merda-Ardraj www.hester.in

CIN L99999GJ1987PLC022333

	STATEMENT OF UNAUDITED CONSOLIDATED FINANCIAL RESULTS FOR THE QUARTER ENDED 30 JUNE 2021
					Amount in INR Million
			Quarter Ended		Year Ended
Sr.No.	Particulars	30 June2021	31 March2021	30 June2020	31 March2021
		Unaudited	Audited(Refer note 6)	Unaudited	Audited
	Income
1	Revenue from Operations	601.86	641.75	398.53	2,143.32
2	Other Income	23.48	24.76	6.94	46.84
3	Total Income	625.34	666.51	405.47	2,190.16
4	Expenses
	(a) Cost of Materials Consumed	121.89	142.47	60.63	386.59
	(b) Purchase of Stock-in-Trade	25.25	22.39	9.98	79.67
	(c) Change in inventories of finished goods, tradedgoods and work in progress	31.45	11.69	(7.12)	35.97
	(d) Employee Benefit Expense	112.88	111.45	85.67	389.23
	(e) Finance Cost	8.60	14.35	15.35	66.04
	(f) Depreciation and Amortisation Expense	32.29	36.30	31.76	133.14
	(g) Other Expenses	139.70	155.98	130.36	565.28
	Total Expenses	472.06	494.63	326.63	1,655.92
5	Profit Before Tax and Exceptional Items	153.28	171.88	78.84	534.24
6	Exceptional Items (Refer Note 3)		(33.21)		(33.21)
	Profit before tax	153.28	138.66	78.84	501.03
$\overline{7}$	Tax Expense
	Current tax	50.59	51.86	29.53	169.47
	Deferred tax	(7.50)	(14.17)	(1.19)	(15.42)
	Total Tax Expense	43.09	37.69	28.34	154.05
8	Profit After Tax	110.19	100.97	50.50	346.98
9	Other Comprehensive Income
	Items that will not be reclassified to Profit or Loss
	Remeasurement Gain/(Loss) on Defined Benefit Plans	0.72	0.01	(1.34)	2.86
	Income Tax Impact	(0.18)	(0.00)	0.34	(0.72)
	Items that will be reclassified to Profit or Loss
	Foreign Currency Translation Reserve	2.35	(17.59)	0.75	(17.94)
	Income Tax Impact
	Total Other Comprehensive Income	2.89	(17.58)	(0.25)	(15.80)
10	Total Comprehensive Income for the period $(7+8)$
		113.07	83.39	50.25	331.18
11	Profit for the period attributable to:
	(i) Owners of the Company	124.90	96.89	57.15	344.30
	(ii) Non Controlling Interest	(14.71)	4.08	(6.65)	2.68
12	Other Comprehensive Income for the peiodattributable to:
	(i) Owners of the Company	2.89	(3.50)	(0.25)	(15.80)
	(ii) Non Controlling Interest		(14.08)
13	Total Comprehensive Income for the peiodattributable to:
	(i) Owners of the Company	127.79	93.39	56.90	328.50
	(ii) Non Controlling Interest	(14.71)	(10.00)	(6.65)	2.68
14	Paid-up equity share capital	85.07	85.07	85.07	85.07
1516	Other EquityEarnings Per Share (Face Value of INR 10 each)	12.95	11.87	5.94	2,198.0140.79

Notes:

• 1 The consolidated financial results of Hester Biosciences Limited (the "Company") and its subsidiaries (together referred as the "Group") have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in their respective meetings held on 12 August 2021.
• 2 The Statutory Auditors have carried out limited review of the consolidated financial results of the Group for the quarter ended 30 June 2021.
• 3 Exceptional items during the quarter and year ended 31 March 2021 includes loss on disposal of Patan farm aggregating to INR 33.21 million.
• 4 Following are the details of segment wise revenue, results, segment assets and liabilities:

Amount in INR Million
		Quarter Ended		Year Ended
Particulars	30 June	31 March	30 June	31 March
	2021	2021	2020	2021
Segment Revenue
a. Poultry Healthcare	447.85	527.00	298.24	1,564.51
b. Animal Healthcare	154.01	114.75	100.29	578.81
Total Income from Operations (Net)	601.86	641.75	398.53	2,143.32
Segment Results
a. Poultry Healthcare	131.04	168.48	63.84	389.11
b. Animal Healthcare	6.82	(12.51)	30.35	180.92
Total Segment Results	137.86	155.97	94.19	570.03
a. Finance Costs	8.60	14.35	15.35	66.04
c. Other unallocable expenditure/(income) (Net)	(24.02)	2.96	-	2.96
Profit before Tax	153.28	138.66	78.84	501.03
Segment Assets
a. Poultry Healthcare	1,381.18	1,891.35	1,402.37	1,891.35
b. Animal Healthcare	1,904.59	1,993.65	1,918.25	1,993.65
Unallocated Assets	680.72	225.49	838.15	225.49
Total	3,966.49	4,110.49	4,158.77	4,110.49
Segment Liabilities
a. Poultry Healthcare	176.32	220.23	100.35	220.23
b. Animal Healthcare	369.29	309.87	697.21	309.87
Unallocated Liabilities	948.29	1,220.81	1,481.48	1,220.81
Total	1,493.90	1,750.91	2,279.04	1,750.91

5 The Code on Social Security, 2020 ("Code") relating to employees benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/ interpretation have not yet been issued. The Group will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

• 6 The figures for the last quarters are the balancing figures between the audited figures in respect of the full year ending 31 March 2021 and the unaudited published year-to-date figures upto 31 December 2020, being the date of the end of the third quarter, which were subjected to limited review.
• 7 Key numbers of the standalone financial results of the Company for the quarter ended 30 June 2021 are as under:

				Amount in INR Million
		Quarter Ended		Year Ended
Particulars	30 June	31 March	30 June	31 March
	2021	2021	2020	2021
Total Income	595.37	632.78	392.95	2,101.25
Profit Before Tax and Exceptional Items	165.16	178.18	104.10	600.61
Profit before tax	165.16	125.40	104.10	547.83
Profit After Tax	122.37	88.59	76.23	399.01
Total Comprehensive Income	122.91	88.60	75.23	401.15

The Standalone Financial Results are available at the Company's website www.hester.in and on the website of the stock exchanges www.bseindia.com and www.nseindia.com.

For and on behalf of the Board of Directors

Rajiv Gandhi CEO & Managing Director DIN: 00438037

Place: Ahmedabad Date: 12 August 2021

Chandulal M. Shah & Co. CHARTERED ACCOUNTANTS

A/6, 6th Floor, Wing-A, Safal Profitaire, Opp. Prahladnagar Garden, Corporate Road, Prahladnagar, Ahmedabad-380015. 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 Consolidated financial results of Hester Biosciences limited pursuant to the Regulation 33 of the SEBI (listing Obligations and Disclosure Requirements) Regulations, 2015, as amended

Review Report To The Board of Directors of Hester Biosciences limited

• 1. We have 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 on June 30, 2021 ("the 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").
• 1. This 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 principles laid down in Indian Accounting Standard 34 "Interim Fina ncial Reporting" ("Ind AS 34"), prescribed u/s 133 of the Companies Act, 2013 as amend ed. 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.
• 1. 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 modera te 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.

The statement includes the results of the following subsidiaries:

Sr. No. Name of the Company

• 1 Texas Lifesciences Private Limited
• 2 Hester Biosciences Nepal Private Limited
• 3 Hester Biosciences Africa Limited
• 4 Hester Biosciences Kenya Limited
• 5 Hester Biosciences Tanzania Limited (Stepdown subsidiary)
• 1. 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.

1. The co solidated unaudited financial result includes the interim financial statements, fina ncial information & finan ial re ults of 4 substdiarl and 1 stepdown subsidiary which have not be n revi w d/oudW d by th ir a it r , who e interim financial statements. financial information & financial r ult r fl ct total r v nue of Rs. 83.60 million, total net profit/ (loss) oft r ta f Rs. (10. ) milli n and total comprehen ive income/(loss) of Rs. ( .7 ) million for th qu rter n d on Jun 0, 2021. a co i ere in the consoli oted una it d financial r ult . Th e financial stat m nts nd other financial information ha e been rtified by the management. All ubsidiari s, except (Sr. o. 1) ore located t ide India ho e financial r ults have b en prepared in accordance with accounting in i les enerall accepted in their respective countrie ('local GAAP'). The Parent's manag 1 ent ha converted the financial results of such sub idi ries from loc I GAAP to a counting principles generally accepted in India. We have reviewed these conversion a 'ju tment made by the Parent's management. Our conclusion, in so f r as it relates to the amounts and disclosures included in respect of these subsidiaries, i based on management certification and the conversion adjustments prepared by the ma agement of the Holding Company and reviewed by us.

Our conclusion on the statement is not modified in respect of the above matters.

For Chandulol M. Shah & Co. Chartered Accountants FRN No. 1016 8W

iA-

Arpi D. S ah Partner M. No. 135188 UDIN: ti 13.(1 ~'e'AAf:\Al) /1551

Place: Ahmedabad Date : August 12, 2021

Page 1 of 4

Press Release

12 August 2021

Hester Biosciences Limited Q1 FY22 Results

Q1 FY22 Sales have gone up by 50%, Net Profit has gone up by 60% as compared to Q1 FY21

Hester Biosciences Limited (referred as the "Company" from here), today announced the financial results for the first quarter of FY 2021-22. The Company achieved an improved operational and financial performance in Q1 FY22 as compared to the corresponding quarter of FY21.

The market and economic recovery has supported well for the growth of the poultry and animal industry and is expected to continue in the coming period.

The company is constantly investing in the geographical market expansion and marketing manpower to achieve the budgeted topline.

				(INR Million)
		Q1
Particulars	FY22	FY21	Growth	FY21
Revenue from operations	585.05	388.77	50%	2,084.77
Net Profit	122.37	76.24	60%	399.01
EPS (In INR) (not annualised)	14.38	8.96	60%	46.90

Financial Highlights (Standalone)

The results of Q1 FY22 have been in line with the financial forecasts and the budgets

During Q1 FY22, the overall topline grew by 50%, compared to Q1 FY21 which was affected by a nationwide lockdown during the initial period of the pandemic.

• Overall, the sales of Vaccines have registered a growth of 41% in Q1 FY22, and the sale of Health Products have registered a growth of 94% in Q1 FY22.
• Domestic sales have registered a growth of 61% in Q1 FY22. The opening up of the domestic market has resulted in the higher demand of the products.
• Export sales have registered a marginal de-growth of 8% in Q1 FY22. Export orders are affected due to restricted cargo movements globally.

Division-wise Revenue Contribution in Q1FY22

		(INR Million)
		Q1
Particulars	FY22	FY21	Growth	FY21
Poultry Healthcare	481.04	299.13	61%	1,558.63
Animal Healthcare	104.01	89.65	16%	526.14
TOTAL	585.05	388.78	50%	2,084.77

Page 2 of 4

Profitability Analysis

Particular	Q1FY22	Q1FY21	FY21
Gross Profit Margin	58.99%	64.79%	61.95%
EBITDA Margin	31.02%	34.25%	34.53%
Net Profit Margin	20.92%	16.79%	19.14%

Rationalising product mix and increasing the contribution of Health Products in overall sales has resulted in fluctuations in the Gross margins and EBIDTA margins. However, controlling the manufacturing expenses and proper utilisation of the funds has led to an increase in the bottom line by 60% in Q1 FY22 as compared to Q1 FY21.

Balance Sheet Analysis

Particular	Q1FY22	Q1FY21	Up/(Down)	FY21
ROE	19.59%	12.39%	7.20%	16.79%
ROCE	24.70%	17.30%	7.40%	25.90%
ROI	18.20%	9.58%	8.62%	14.15%

Status on Hester's initiatives in developing Covid-19 vaccine

1. Arrangement with Bharat Biotech

• The Company, along with Gujarat Biotechnology Research Centre, Department of Science & Technology, Government of Gujarat, has entered into a term sheet dated June 28, 2021 towards the licensing agreement with Bharat Biotech International Limited (BBIL) to manufacture the Drug Substance for Covaxin.
• Under the arrangement, the Company will build the BSL-3 facility suitable for manufacturing the drug substance for Covaxin.
• The project is progressing as per the timeline.
• 1. Collaboration with IIT Guwahati
  • On 15 April 2020, Hester signed an agreement with IITG to develop a vaccine against Covid-19.
  • IITG is working towards developing the recombinant vaccine candidate, based on which, Hester shall take the project further from developing the master seed up to commercially manufacturing the vaccine.

Other developments

• 1. The development of Classical Swine Fever Vaccine, Lumpy Skin Disease Vaccine and Sheep Pox Vaccine is going as per the timeline and the commercial production is expected by the end of Q3FY22.
• 1. The newly introduced range of herbal products is performing well and has started contributing on the topline.
• 1. 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.
• 1. Various capacity expansion plans for live and inactivated vaccines in poultry and animal healthcare are underway at the Kadi plant and the commercial production is expected in the next financial year.

Page 3 of 4

Business Overview of subsidiary entities:

Texas Lifesciences

			(INR Million)
Particular	Q1FY22	Q1FY21	FY21
Net Sales	49.48	23.22	180.01
Net Profit / (Loss)	1.60	1.42	13.46

Texas Lifesciences is showing a constant growth in the topline and the expansion plans in the healthcare products business augment this growth.

We are in the process of expanding the capacity at Texas Lifesciences.

Hester Nepal

		(INR Million)
Q1FY22	Q1FY21	FY21
4.01	1.63	47.51
(6.84)	(20.83)	(9.73)

Though there is slight increase in the sales of the subsidiary, however, the volume of FAO tenders is yet to come to its normalcy, which is expected in the near future.

Hester Tanzania

(INR Million)
Particular	Q1FY22	Q1FY21	FY21
Net Sales	14.45	6.93	40.88
Net Profit / (Loss)	2.00	3.78	(3.88)

The company has achieved topline and bottom line as budgeted in the current period and the investment made in the marketing expansion activities, earlier this year has started giving positive results in terms of profits.

Hester Africa

• 1. Hester Africa manufacturing plant is located in Kibaha Coast region of Dar es Salaam, Tanzania. The plant will manufacture animal vaccines to cater to the diseases specific to the continent of Africa.
• 1. The construction of the plant was completed in February, 2021 and the validation process of the drug authorities is under progress.
• 1. The commercial production is expected to start in Q3 FY22 and its benefits will be visible from FY 2022-23 as we capitalise on its large capacity to serve the African markets, which has one of the largest domestic livestock and large animal population.
• 1. Built at a total cost of USD 18 million, this plant will help us become a leading player in Africa and contribute significantly to our overall top line.
• 1. We recently welcomed Dr. Furaha Mramba as the CEO of Hester Biosciences Africa Limited. Dr. Furaha comes with a rich experience that includes heading the Tanzania Veterinary Laboratory Agency (TVLA) for years in the past. She holds a PhD and Master's in Medical Entomology and a Bachelor's in Zoology & Botany.

Page 4 of 4

About Hester Biosciences

Hester Biosciences is a leading animal healthcare company engaged in manufacturing and marketing of animal vaccines and healthcare products. The Company operates with a singular focus of improving health of animals, monitoring and preventing diseases in them, thereby enabling better health for human beings.

The Company is progressing by innovation and building capacities to unlock untapped potential and also aims to play a bigger role in strengthening the livestock industry in India and contributing to the nation's development.

For more information, please visit www.hester.in