Rhutu Mantri
Rhutu Mantri

@RhutuMantri

12 Tweets 8 reads Jul 26, 2021
Hester Biosciences FY21 Annual Report Takeaways ๐Ÿ”
'Hester is the only Company in ๐Ÿ‡ฎ๐Ÿ‡ณ that has a Lumpy Skin Disease (LSD) vaccine under development.'
Hit the 'retweet' & help us educate more investors.
A Thread ๐Ÿงต๐Ÿ‘‡
1/ About the company
One of the fastest-growing poultry & animal healthcare companies globally (10yr sales growth: of 18%)
Widening portfolio through R&D investments
Have been investments aggressively in capacity augmentation (gross block cagr of 16% from FY16-21)
2/ Numbers that matter
Rev up 23%
35% EBITDA margin
Pat up 28%
Strong cashflows
Consol Debt of about 100crs
2nd largest poultry vaccine manufacturer in ๐Ÿ‡ฎ๐Ÿ‡ณ
Present in 30+ countries
899 Cr doses annual capacity
3/ Innovation
- New category of herbal products for poultry & animals
- First vaccine to be launched for Lumpy skin disease in ๐Ÿ‡ฎ๐Ÿ‡ณ
The total set of products:
Poultry- 18 live & 30 inactivated vaccines
Animal- 3 live vaccines
4/ Business updates
- One of Africa's largest vaccine capacities going online by Dec 2021: Spent 100+ crs
- Launched 13 new herbal products for poultry, cattle, ๐Ÿ‘, ๐Ÿ& swine
- Increased transmissibility of diseases from animals to humans: Govts spending more on animal vaccines
5/ Subsidiaries, manufacturing & distribution capability
- Ability for last-mile delivery in ๐Ÿ‡ฎ๐Ÿ‡ณ,๐Ÿ‡ณ๐Ÿ‡ต(Nepal) &๐ŸŒ (Africa)
- Economies of scale: Asiaโ€™s largest single-location animal biological manufacturing facility
- Products complying with WHO, GMP, GLP & ISO 9001:2015 standards
6/ From the desk of the CEO (Mr. Rajiv)
- Business: Poultry (up 25%) outperformed Animal (up 19%) & India (up 29%) outperformed exports (down 4% due to supply chain issues)
- Incremental R&D going in large animals & developing the drug substance for Bharat Biotech's COVAXIN
7/ The global & the Indian Animal Healthcare business
- Driven by protein demand, increased incidence of Zootonic & food-borne diseases, adoption of pet health insurance in the west
- Potential for India (domestic market: $1B+) to become an export hub for APIs & formulations
8/ Outlook for the business
- Has plans to get into newer territories & with newer products in the pipeline: broaden the breadth & depth of the supply chain
- Technological collaborations with the govt & other private institutions
- Looking to monopolize in few vaccines.
9/ Risks & how they plan to mitigate it.
A company with the potential to scale multifold as new capacities come up (implementation risks) with a promoter who has a fire in the belly.
Nevertheless, Need to track the numerous risks this business entails.
End of Thread.
Here's a glossary for all the complex abbreviations mentioned above ๐Ÿ‘‡
Ask us any questions that arise about Hester's business in the comments section.
Hester Bioscienceโ€™s Q4FY21 results coverage ๐Ÿ‘‡

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