On Friday, the market-leading company in India’s poultry vaccine industry saw a significant 8.5% surge to ₹1,815.50 per share following a 19% year-on-year increase in net profit.
At 1:45 p.m., Hester Biosciences Ltd shares were trading at ₹1,715 per share, up 3.34 % on the National Stock Exchange from the previous close price. The company has a market capitalization of ₹1,459 crore.
In the quarter ending March 2024 (Q4FY24), Hester Biosciences Ltd reported a standalone net profit of ₹7.4 crores, reflecting a 19% increase from the ₹6.2 crores recorded in Q4FY23. Furthermore, the company witnessed a notable surge in total revenue from operations for the same quarter, reaching ₹74 crores, marking a 20% rise compared to the previous year’s corresponding quarter’s revenue of ₹61 crores.
In the fiscal year 2023-24, the company’s consolidated net profit declined by 16%, reaching ₹27 crores from ₹32 crores in FY22-23. Likewise, the total revenue for the fiscal year increased by 12%, reaching ₹259 crores compared to ₹289 crores in the preceding fiscal year, as stated in the company’s filing.
In Q4 FY24, Hester Biosciences saw a notable increase in its gross profit margin, rising by 1% compared to the same period last year. This growth was driven by the surge in vaccine sales, which rose from 60% to 75% of total sales in Q4 FY24. Consequently, EBITDA increased by 14%, aligning with the overall sales growth and resulting in a substantial 19% increase in PAT for the quarter.
Furthermore, the company has reduced its total borrowings by ₹307.58 million (19%) over the year. Cash generated from operations also saw a significant boost, increasing by ₹94.50 million (28%) during the same period.
Hester Nepal achieved a turnover of ₹55.13 million in Q4 FY24 and ₹135.70 million in FY24, with a net profit of ₹33.86 million in Q4 FY24 and ₹54.07 million in FY24. Notably, the company secured export orders against government tenders.
Similarly, Hester Africa maintained export sales totaling ₹7.93 million in Q4 FY24, primarily in LSD and CBPP vaccines, with total sales reaching ₹52.32 million for FY24. Despite this, the company incurred losses of ₹48.08 million in Q4 and ₹182.95 million in FY24, attributed mainly to unmet sales targets and various costs including exchange rate fluctuations and depreciation.
Established in 1997, Hester Biosciences Limited is a leading animal health company in India, specializing in vaccine and health product manufacturing. It holds a dominant position in the global market, particularly as the largest supplier of PPR vaccine with approximately 75% market share.
Additionally, it commands over 70% of the Goat Pox vaccine market in India, crucial for immunizing cattle against Lumpy Skin disease.
The company has proposed a dividend of ₹6 per equity share of ₹10 each (60%) for the financial year 2023-24, subject to approval at the Annual General Meeting.
Hester Biosciences Ltd shares have experienced an 8% gain in the last six months, with a 4% decline over the past 12 months.
Written by Omkar Chitnis
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
