Q1 2027 Hester Biosciences Ltd Earnings Call Transcript
Key Points
- Standalone revenue grew 14% and PAT surged 88% year-over-year, with gross margins improving from 69% to 78%.
- Poultry Healthcare Division delivered an excellent quarter with 48% growth, driven by higher institutional business and deeper market penetration.
- EBITDA grew 95%, reflecting stronger operating performance and disciplined execution.
- The Gates Foundation reduced Hester Africa's soft loan from USD 12 million to USD 5 million, waived accrued interest, and made the loan interest-free, easing financial burden.
- Early traction in new poultry health products (feed supplements, disinfectants) supports a holistic disease prevention approach.
- Regulatory dossiers submitted in animal health segment, indicating continued R&D investment and pipeline progress.
- Capacity utilization at approximately 65%, leaving room for growth without significant new capex.
- Consolidated revenue declined 8% due to lower revenues from Nepal and Africa operations.
- Animal Healthcare Division continues to be impacted by timing of government-led immunization programs (PPR, Lumpy Skin Disease), causing volatility.
- Africa operations face geopolitical and economic challenges, leading to unpredictable and volatile performance.
- Management declined to provide directional guidance on Africa or capacity utilization, citing uncertainty.
- Petcare division remains small and not separately reported, with no clear timeline for vaccine launches.
- Cash conversion is weak, with receivables higher, though management downplays concern.
- Dependence on government tenders creates unpredictability in animal health business.
Ladies and gentlemen, good day and welcome to Hester BioSciences Q1 FY27 Earnings Conference Call hosted by ICICI Securities Limited. (Operator Instructions)
From the management side we have with us today Mr. Rajiv Gandhi CEO and Managing Director, Ms. Priya Gandhi Executive Director and Mr. Ashish Desai CFO. I now hand the conference over to Ms. Priya Gandhi. Thank you and over to you ma'am.
Thank you. Good afternoon, everyone. This is Priya Gandhi. Thank you for joining us today to discuss our Q1 FY27 results. As always, we sincerely appreciate your continued engagement and long-term support. At our Annual General Meeting earlier this month, we spoke about the theme of this yearâs report, which is âBuilding with Intent, Growing with Scienceâ. We shared how our focus over the past year has been on strengthening Hesterâs scientific capabilities, manufacturing platform, operational discipline, and long-term competitiveness. And the first quarter of FY27 does give us some encouraging evidence that
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