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Veterinary medicine maker Hester Biosciences Ltd has reported a 57 per cent increase in net profit and a 32 per cent rise in net sales in the first quarter ended June 30, 2018, as compared to the corresponding quarter last fiscal.
The Ahmedabad-based firm’s net sales in the first quarter this year were ₹38.26 crore (₹29.04 crore), its net profit was ₹9.68 crore (₹6.15 crore), according to a company statement here. The company’s Board has declared an interim dividend of 20 per cent (₹2 per share) for the current financial year.
The top-line growth can be attributed to the commissioning of the expanded capacity and shifting the focus on high value products, said Rajiv Gandhi, CEO and Managing Director. The main drivers for the improvement were reduction in the costs of goods sold, better inventory management, rationalising the product mix and better credit control. Hester’s Nepal plant, which received manufacturing and marketing authorisation for four additional animal vaccines, has started generating revenues leading to a positive EBIDTA level, he said. The animal vaccine manufacturing project in Tanzania, Africa, has also been finalised. Its first commercial batch is slated to be released in 2020. This plant would be the first of its kind in Africa to address many prevailing diseases in the continent. It is designed to generate a top-line of $30 million at full capacity.
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