Leading mal healthcare company Hester Biosciences on Friday reported 60 per cent fall in its Q4 FY20 net profit at Rs 50 crore as compared to Rs 124 crore in Q4 FY19.
Net sales dropped by 15 per cent to Rs 414 crore from Rs 488 crore in the same period. Earnings per share came down by 60 per cent to Rs 5.88 from Rs 14.55.
The mal and poultry vaccines manufacturer said it invested in sales and marketing in order to drive an increase in sales by covering larger territories and expanding presence in the market through additional field force.
The investment did not provide commensurate growth, resulting in high costs which impacted the bottom line, the company said in a statement.
Hester's poultry health division showed a de-growth by 5 per cent due to the industry which remained in a recessionary condition throughout the year. Things seemed to improve in January but were subject to a setback from mid-February.
The mal health division registered a growth of 6 per cent but supplies under tenders which were expected to be executed in Q4 have got delayed.
The board of directors has recommended a dividend of Rs 6.60 per equity share (66 per cent) for FY20. This dividend recommendation is in line with the company's policy to distribute a minimum of 18 per cent of profit after tax.
( With inputs from ANI )