Hester Biosciences has posted standalone net profit growth of 26.7 per cent during the fourth quarter ended March 2018 to Rs.9.01 crore from Rs.7.11 crore in the corresponding period of last year mainly due to lower tax provision. Its tax provision declined to Rs.0.43 crore from Rs.2.26 crore. The company's net sales improved only by 5.3 per cent to Rs.37.48 crore from Rs.35.60 crore and EBIDTA declined slightly to Rs.11.47 crore from Rs.11.79 crore. With improvement in net profit, EPS improved to Rs.10.59 from Rs.8.32 in the last period.
Hester scrip declined sharply by over 3 per cent to Rs.1,568.65 from previous day's close of Rs.1,623.45 on BSE. The scrip touched to yearly peak level at Rs.1,949.80 during December 2017 as against its yearly low at Rs.810 in May 2017. The board of directors has recommended final equity dividend of 60 per cent for the year 2017-18. Earlier, the company paid equity dividend of 40 per cent.
During the fourth quarter, Hester registered two new products in Egypt and also completed the drug authorities audit from 2 African counties. It received manufacturing licence in India for two diagnostics kits.
For the full year ended March 2018, Hester's consolidated net sales increased by 8.8 per cent to Rs.136.41 crore from Rs.125.40 crore in the previous year and its net profit improved marginally by 1.2 per cent to Rs.23.07 crore from Rs.22.79 crore. Tax provision increased by 60.1 per cent to Rs.13.05 crore from Rs.8.15 crore. The sales of poultry division grew by 5.4 per cent and that of large animal divisions improved by 16.8 per cent.
The suffered heavy net loss of Rs.7.36 crore in Nepal as compared to Rs.2.20 crore in the previous year. Accumulated loss in Nepal reached at Rs.9.61 crore. And its total debt amounted to Rs.16.02 crore. Worldwide PPR tenders were far less than anticipated, thereby directly impacting its performance.
Hester acquired 55 per cent stake of Texas Lifesciences Pvt Ltd, based in Mehsana, Gujarat engaged in manufacturing pharma formulations, tablets, capsules, powder and oral liquid for human and veterinary markets during June 2017 with main objective of quality of the range of animal health products marketed by the company. The sourcing of all Hester health products is being systematically transferred to Texas. Its total revenue for 2017-18 reached at Rs.1.47 crore with 45 per cent of the revenue being derived out of sales to Hester. The company registered small net profit of Rs.0.04 crore.
The company is now planning to set up an animal vaccine manufacturing unit viz Hester Biosciences Africa Ltd, a wholly owned subsidiary, in Tanzania to tap opportunities in Africa. It is investing US$ 18 million and expects to commission the project by January 2020. The project with capacity of 1.5 billion doses of vaccines, would mainly manufacture vaccines against Africa-specific diseases, besides having the capability as well as the capacity to manufacture a bigger range of vaccines against other commonly occurring animal diseases. It is also planning to set up a strong distribution network in Africa.