Hester Biosciences reports net profit of Rs 3.56 crore in Q1FY23

Hester Biosciences has reported consolidated net profit of Rs 3.56 crore and revenue from operations of Rs 50.70 crore for Q1FY23. Further, health products’ sales constituted 34 per cent of the total sales in Q1 FY23, versus 20 per cent in Q1 FY22, a statement from the company notified.

In addition to it, the statement said that Hester Tanzania has just started commercial operations and revenues are expected to start in Q2. Hester Nepal has registered 16 per cent growth in domestic revenues; however, there were no tender sales in the current quarter due to delay in tendering by FAO and other multilateral institutions.

The recent outbreak of Lumpy Skin Disease (LSD) in certain parts of the country since July 2022 is expected to result in additional sales in Q2 FY23, the statement added.

It also said that the company launched a new division for pet care during Q1 with 10 products. Activities related to market development, field force establishment and product pipeline are ongoing. Pet care division will emerge as a steady long-term growth driver, given the increasing adoption of pets in the country.

Further, according to the statement, the company, in consortium with Gujarat Biotechnology Research Centre (GBRC), Government of Gujarat (GoG), has entered into a term sheet agreement with Bharat Biotech to manufacture the drug substance for Covaxin under the Mission COVID Suraksha Scheme of the government of India. The project is to manufacture drug substance equivalent of up to seven million doses per month. The construction of BSL-3 facility is nearing mechanical completion. Planning and preparation for commissioning is ongoing. The facility is expected to be ready for commercial operation in Q3FY23.

Bulk antigen production capacity expansion project is completed and trial runs are ongoing. Expansion of fill-finish line capacity is expected to be completed by Q4FY23. Vaccine sales declined by 30 per cent in Q1 FY23 compared to the corresponding quarter, the statement mentioned.

Sales of health products grew by 42 per cent on back of a strong momentum gained from new product introductions and territorial expansion, the statement concluded.