Hester Biosciences announces Q3 and 9M FY22 results

Hester Biosciences has announced the financial results of Q3 and 9M of FY 2021-22. The company achieved an improved operational and financial performance in the period as compared to the corresponding period last year, according to a company statement.

The statement notified that the company is constantly investing in geographical market expansion and manpower to achieve the budgeted top-line along with expanding the existing production capacity, a part of which, will be ready from the next quarter.

It also informed that the revenue during the corresponding previous quarter (Q3 FY21) included a one-time licence fee and services of Rs 3.31 crores against which there is no income in the current year. This has an impact of six per cent on margins during that period.

Further, it mentioned that the sales of vaccines have remained the same in Q3 FY22, but have registered a growth of 16 per cent in 9M FY22. Last year, around Q2, Q3 and Q4, there were major disease outbreaks in the poultry industry which led to a spurt in the demand for poultry vaccines. While the company’s vaccines kept the poultry industry immunised from the disease in the last financial year, the overall poultry health situation has been better this year, thereby registering a normal growth. The sales of health products have registered a growth of 42 per cent in Q3 FY22 and 49 per cent in 9M FY22.

The statement also noted that on the account of COVID restrictions during Q3, there was a reduction in the expenses for travelling and conveyance, which has contributed for better margins in that period. There has been an increase in the bottom-line for the period of nine months. This has mainly been the result of focussing on the manufacturing expenses and effective fund management.

In addition, the statement said that the manufacturing plant at Hester Africa has started the production of vaccines against PPR and CBPP. This project will enable Hester to become a leading player in Africa and contribute towards the social as well as economic growth of Tanzania and of the African continent, besides adding to the top-line and bottom-line of Hester.

With the increase in the healthcare business, Texas Lifesciences is showing a constant growth in top-line as well as bottom-line, and the company is expecting the same to continue for the rest of the year. Hester Nepal has seen a turnaround with the execution of export orders. Further, we are expecting to achieve a higher turnover once the FAO tender for the PPR vaccine worldwide comes through. This is expected to come by the end of Q4FY22, the statement further mentioned.

Besides, it said that the development of vaccines against Classical Swine Fever (CSF), Lumpy Skin Disease (LSD) and Sheep Pox is going as per the timeline and the commercial production is expected to start by Q1FY23. The company is all set to launch the modified Inactivated Coryza vaccine (an advanced version of the conventional Coryza vaccine from the existing poultry vaccine portfolio) by the end of Q4 FY22. The PPR national tender has been awarded to the company by the Department of Animal Husbandry and Dairying (DAHD) for the eradication of the PPR disease nationally. Under this programme, the company will supply the PPR vaccine throughout the country for two years. This will come into implementation by Q4 FY22, giving a significant growth in FY23. The tendered supplies would be for 20 crore doses in two years.

In order to grow and expand the animal healthcare division further, the company is in the process of expanding the existing product portfolio, wherein a range of therapeutic products will be introduced by the end of Q4. The company is in the final stage of launching the pet division, in terms of identifying the geographies and products. The aim is to commercialise the division by the end of Q4 FY22. The company has started the process of recruitment for the pet division. The increase of the bulk antigen production capacity for animal vaccines, will be completed before the end of Q4FY22. Creation of the fill-finish line for animal vaccines, will be completed by Q3FY23, the statement added.

Regarding the development of the COVID-19 vaccines, the company, along with Gujarat Biotechnology Research Centre (GBRC), Government of Gujarat (GoG), has entered into a licensing agreement with Bharat Biotech to manufacture the Drug Substance for Covaxin. Hester is currently building the BSL-3 facility suitable for manufacturing the Drug Substance for Covaxin. The construction is going to be completed by Q4FY22. The project is progressing well as per the timeline to manufacture up to 70 lakh doses per month, equivalent Drug Substance for Bharat Biotech. The impact on the top-line could be up to over a 100 per cent growth, with this project going on-stream, concluded the statement.