Animal healthcare player Hester Biosciences Ltd posted net profit of Rs 6.15 crore for the quarter ended June 2017, showing 2.55 per cent growth over ₹5.99 crore reported in the same quarter last year.
The company reported net sales of ₹ 29.04 crore for the first quarter as compared to ₹ 30.71 crore in the corresponding quarter last year, indicating about 5 per cent drop on year-on-year basis.
The company attributed the drop in sales to restricted invoicing in June due to new tax regime under Goods and Services Tax (GST), low chick replacement in the poultry industry and product shortages joined by the tightened credit control.
However, company's export sales grew by 11.27 per cent, which was also lower than expectations.
"The business performance seems low in terms of topline but we are confident of adhering to our forecasts for this financial year. Domestic large animal vaccines sale is expected to take a leap. Exports will also see a boost in the coming quarters due to additional product registrations received as well as by the on-going process of creating a stronger penetration, particularly in Africa. We also expect bigger international tender orders in this financial year," a company statement said.
The company shares dropped by over 6 per cent on Friday to close at ₹ 1,055.30 on the NSE.