Hester Biosciences Ltd

- There is no current plan, desire, or thought of selling any existing facilities to raise funds. - The company is managing existing expenditures for ongoing projects without additional major capital expenditure except potentially for creating a pilot R&D plant; timing and decision on this are yet to be finalized. - No mention of new fundraising through debt or equity was made in the call. - The management is focusing on optimizing current operations and infrastructure to support growth with existing resources. - The balance sheet is noted to be leveraged, but no explicit plan for fresh equity or debt issuance is indicated.

- Current CAPEX is limited to necessary expenditures to rejig existing facilities to support committed projects and pipeline vaccines, most of which do not require additional capital expenditure. - A significant potential CAPEX involves creating a pilot R&D plant, with timing and decision still under consideration. - There is no plan to sell any existing antigen-generating or vaccine manufacturing facilities; repurposing of the human vaccine facility (BSL-3 lab) is underway pending government concurrence. - The company is managing other investments within already incurred expenditures and focusing on efficiency. - Recruitment investments are planned mainly for expanding sales infrastructure in African markets once product registrations are completed, but these are operational expenses rather than CAPEX.

- Poultry division is on a recovery path with a positive upswing in vaccine and health product sales expected to continue into FY25. - Management anticipates double-digit growth in the domestic poultry vaccine division but refrains from giving specific percentage guidance publicly. - The new CuRx LA product is expected to neutralize previous sales losses within one year, contributing to growth. - Expansion efforts in African markets are ongoing, with hopes for improved sales once product registrations complete and local teams are hired. - Animal Health division shows a 17% growth in health product sales excluding discontinued brands and is launching line extensions expected to mitigate past sales losses. - Development of new vaccines and introduction of pet product lines indicate plans for diversification and long-term growth. - Overall emphasis on stabilizing and growing existing segments, with readiness to invest selectively in infrastructure like pilot R&D plants if needed.

- The company expects a positive upswing in the Poultry division with sustained growth in vaccines and health products sales going forward. - Management anticipates double-digit growth in the Poultry Healthcare division but refrains from making specific percentage commitments publicly. - New product launches like the modified Newcastle Disease Vaccine and Infectious Bursal Disease vaccine with improved technology are expected to strengthen performance and capture more market share. - The Animal Healthcare division is working to neutralize the negative impact of regulatory changes within one year through product launches and market strategies. - The Pet Care division showed 91% growth over 9 months, indicating a strong growth trajectory despite a slight recent dip. - International markets, especially Africa, are expected to improve as registration activities conclude, enabling sales expansion. - Overall, management is optimistic about growth in revenues, profitability, and operational performance, aiming for improved stability and high growth in the coming quarters.

- In Q3 FY24, Hester Africa had export sales of Rs. 0.73 crores mainly to East African countries. - Over 9 months in FY24, export sales totaled about Rs. 4.5 crores. - The company has faced overall losses (Rs. 3.6 crores in Q3 and Rs. 13 crores in 9 months) due to unmet sales targets and fixed/variable costs. - Registrations for products in African countries are ongoing aggressively. - Once registrations are complete, the company expects to start supplying in several countries. - There is hope for increased purchases from governments if the situation improves. - Challenges include foreign exchange constraints in key African markets (Egypt, Ethiopia, Nigeria). - The company is simultaneously pushing domestic sales in Tanzania. - Focus on private channel sales and creating distributors to overcome tender funding and market constraints. - Overall, increased order fulfillment and supply are expected once registration hurdles are cleared in the next two quarters.