Hester Biosciences dips post September quarter results

The stock dipped 7% to Rs 716, falling 9% from intra-day high on BSE.

Hester Biosciences has dipped 7% to Rs 716, falling 9% from intra-day high on BSE, after the company reported 39% year on year (YoY) growth in net profit at Rs 59.69 crore for the quarter ended September 30, 2016 (Q2FY17). The company had posted a profit of Rs 42.97 crore in September 2015 quarter and of Rs 59.99 crore in June 2016 quarter.

Net sales grew 23% at Rs 296 crore on YoY basis. On sequential basis, net sales declined 1.7% from Rs 301 crore in previous quarter.

“Domestic sales grew by 24% while exports grew by 16%. We are short on our export targets, which we hope to recover in H2, more so with Nepal exporting vaccines to Africa,” Hester Biosciences said in a press release.

Nepal plant is slated to commence commercial production on 15 November 2016.  We hope to launch our animal diagnostics division in the fourth quarter, thereby becoming one the few animal health companies worldwide, covering preventive, curative, growth promoting products as well as diagnostics, it added.

The board has declared an interim dividend of 30%, i.e. Rs 3 per equity share on the face value of Rs 10 per share, for the financial year 2016-17.

At 12:16 pm, the stock was down 3.3% at Rs 742, after hitting high of Rs 789 before the announcement of Q2 results. A combined 66,160 shares changed hands on the counter on BSE and NSE so far.