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Hester Biosciences - Poor Offtake In Poultry, Focus On Animal Business: ICICI Direct

Hester Biosciences - Poor Offtake In Poultry, Focus On Animal Business: ICICI Direct

Hester Biosciences Ltd. an animal healthcare company and the second largest poultry vaccine manufacturer in India. (Source: Company website)
Hester Biosciences Ltd. an animal healthcare company and the second largest poultry vaccine manufacturer in India. (Source: Company website)

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ICICI Direct Report

Hester Biosciences Ltd.'s revenue witnessed a 14% decline YoY to Rs 56 crore on back of 25% YoY de-growth in poultry business to Rs 40 crore being partly offset by 46% YoY growth in animal business to Rs 17 crore.

Ebitda margins declined 1253 basis points YoY to 18%, mainly due to higher other expenditure amid higher spend on market expansion in animal health.

Ebitda declined 48% YoY to Rs 10 crore. Subsequently, profit after tax was down 41% YoY to Rs 8 crore [note: base of Q4 FY21 had Rs 6.8 crore of license fee income].

Hester’s poultry business benefitted from a major disease outbreak in Q4 FY21 while this quarter poultry farm economics also turned adverse due to rise in feed costs and decline in end-product prices.

Animal business benefited from new product launches and geographical expansions.

Click on the attachment to read the full report:

ICICI Direct Hester Company Update.pdf

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