Hester Biosciences Reports Q3 and 9M FY25 Financial Results

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Standalone Profit Declines 31% in Q3, Grows 13% in 9M; Consolidated Profit Soars 184% in Q3, Up 85% for 9M

Ahmedabad, January 30, 2025 – Hester Biosciences Limited has reported its unaudited standalone and consolidated financial results for the quarter (Q3 FY25) and nine-month period (9M FY25) ended December 31, 2024.

Key Financial Highlights (Standalone)

ParticularsQ3 FY25Q3 FY24Change (%)9M FY259M FY24Change (%)
Revenue from Operations₹628.26 Mn₹655.05 Mn-4%₹2,097.94 Mn₹2,122.83 Mn-1%
Gross Profit Margin68%67%+1%68%64%+4%
EBITDA₹103.17 Mn₹125.48 Mn-18%₹409.48 Mn₹379.85 Mn+8%
EBITDA Margin16%19%-3%20%18%+2%
Profit After Tax (PAT)₹44.39 Mn₹64.75 Mn-31%₹222.07 Mn₹197.28 Mn+13%
PAT Margin7%10%-3%11%9%+2%
Earnings Per Share (EPS)₹5.22₹7.61-31%₹26.10₹23.19+13%

Key Financial Highlights (Consolidated)

ParticularsQ3 FY25Q3 FY24Change (%)9M FY259M FY24Change (%)
Revenue from Operations₹632.18 Mn₹669.83 Mn-6%₹2,291.77 Mn₹2,252.91 Mn+2%
Gross Profit Margin₹435.93 Mn₹463.44 Mn-6%₹1,615.96 Mn₹1,498.92 Mn+8%
EBITDA₹138.45 Mn₹123.53 Mn+12%₹555.35 Mn₹483.54 Mn+15%
EBITDA Margin22%18%+4%24%21%+3%
Profit After Tax (PAT)₹114.08 Mn₹40.20 Mn+184%₹272.85 Mn₹147.71 Mn+85%
PAT Margin18%6%+12%12%7%+5%
Earnings Per Share (EPS)₹13.41₹4.73+184%₹32.07₹17.36+85%

Segment-Wise Performance

Animal Healthcare Division

  • Q3 FY25 revenue declined 24% YoY, while 9M FY25 revenue grew 4%.
  • Factors impacting Q3 decline:
    • Seasonal changes, including early monsoon withdrawal.
    • Lower milk prices reducing farmer spending on cattle healthcare.
    • Ban on Nimesulide, leading to product recall; alternative in development.

Poultry Healthcare Division

  • Q3 revenue grew 12%, while 9M revenue expanded 22%.
  • Strong demand for vaccines (+20% in Q3, +27% in 9M), driven by Newcastle Disease and Marek’s Disease awareness.
  • New feed supplements and disinfectants launched in Q3.

Petcare Division

  • Rapid growth with 105% increase in Q3 and 38% in 9M.
  • Growth driven by:
    • Strong brand promotion and seasonal demand in antibiotics and grooming.
    • New pet food range launched, boosting market presence.

International Subsidiaries' Performance

  • Hester Nepal: 9M profit at ₹18.69 Mn vs. ₹20.21 Mn YoY; continues export growth.
  • Hester Africa: Net loss reduced to ₹5.65 Mn (vs. ₹134.87 Mn in FY24), supported by foreign exchange gains of ₹78.27 Mn due to Tanzanian Shilling appreciation.

Strategic Outlook

  1. Launch of Avian Influenza Vaccine: Expected in 2025, strengthening the Poultry division.
  2. Petcare Expansion: Ongoing investment to solidify market share.
  3. International Growth: Targeting African market expansion through tenders and direct sales.

Management Commentary

Rajiv Gandhi, CEO & Managing Director, Hester Biosciences, stated:
"Despite headwinds in Q3, our long-term growth trajectory remains intact, driven by our diversified portfolio. The upcoming Avian Influenza vaccine and Petcare segment expansion are expected to further strengthen our position. We remain committed to improving profitability while delivering innovative healthcare solutions for the animal industry."

Conclusion

While Q3 FY25 showed declines in standalone revenue and profitability, the 9M FY25 results remain positive, with consolidated net profit surging 85% YoY. The company remains optimistic about future growth, supported by new product launches, international expansion, and a focus on bottom-line improvement.
 
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