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Hester Biosciences Ltd
Earnings Call Analysis
Summary
Q1-2025
Hester Biosciences reported a strong Q1 FY '25, with standalone sales rising 36% quarter-on-quarter, despite a 9% overall dip due to last year's one-time sales. The Animal Healthcare division saw a 41% growth, while the Poultry and Pet Care divisions grew by 35% and 29%, respectively. Hester's profit increased by 30%, driven by a focus on high-margin products and operational efficiency. Hester Nepal had a turnover of INR 6.3 crores, and Hester Africa turned EBITDA positive with INR 37 lakhs. The company is optimistic about continued growth, especially in the dairy sector and new vaccine launches, despite challenges in Africa and fluctuating margins.
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Ladies and gentlemen, good day, and welcome to the Hester Biosciences Limited Q1 FY '25 Earnings Conference Call hosted by ICICI Securities Limited.
[Operator Instructions]
Please note that this conference is being recorded. I now hand the conference over to Ms. Asha Shetty from ICICI Securities Limited. Thank you, and over to you, ma'am.
Thank you, Neha. good afternoon, everyone. On behalf of ICICI Securities, I welcome you all on the Q1 FY '25 Earnings Conference Call of Hester Biosciences. And I thank the Hester Biosciences management team for giving us this opportunity to host this call. Today on this call, we have with us Mr. Rajiv Gandhi, CEO and Managing Director; Ms. Priya Gandhi, Executive Director; and Mr. Nikhil Jhanwar, CFO.
I will now hand over the call to the Hester management team for their opening remarks. Thank you.
Thank you. Good afternoon, everyone. This is Priya Gandhi, Executive Director of Hester. I'm happy to have you all here for our quarterly update, but I'll walk you all through the performance of the first quarter of FY '25. I hope you all have had a chance to look at our results, which just got published a while ago.
This quarter has been about, I think, a strong foundation for the financial year in terms of divisional performances as well as our profitability. We have aligned our efforts to capitalize on emerging market opportunities and drive sustainable growth across all divisions. On the divisional performance on a stand-alone basis, sales have increased by 36% quarter-on-quarter. However, if you see the overall sales shows a 9% decrease due to a onetime pharmaceutical product sales last year in Q1. But excluding that, our sales have risen.
Coming to the Animal Healthcare division. In Q1, our Animal Healthcare division experienced a growth of 41%. This growth was driven by both paid as well as tender market. The domestic dairy sector, positive trend characterized by higher consumption of milk and milk products, boosted sales of some of our mineral supplements and intra-mammary products.
Our focus on 5 key product brands in the same market has resulted in an 8% growth for these products. Additionally, we are also focused on trade demand and actively participated in the tender market, focusing on PPR sheep and goat and Goat Pox vaccine to immunize cattle against the lumpy skin disease.
Looking ahead, we aim to leverage on the anticipated growth in the dairy sector [ having ] offerings to meet the evolving market needs. Speaking of the Poultry Healthcare division, our Poultry Healthcare division achieved a growth of 35% in Q1. This quarter, we focused on our core strength, which is vaccine. The recovery of the poultry industry helped us regain momentum and that aside, our efforts to strengthen technical services in the field, including robust monitoring of vaccine administration and introducing a variant of the Newcastle disease vaccine contributed to this growth. About the Pet Care division, the Pet Care division saw a growth of 29% with the sales crossing INR 1 crore in the first quarter, significantly outpacing the market growth of 9%.
While our base is relatively low, the percent growth is nonetheless promising. This growth was driven by increased penetration among vet clinics, leading to more prescription of Hester products. Our focus on the prescriptive segment in the Pet Care address unmet need with product in categories of parasiticide, anti-inflammatory and anti-infective contributing to the overall growth. Also a new launch of the skincare tonic, which we introduced in Q1, proved popular amongst pet owners addressing seasonal skin conditions effectively.
Coming on to the financial performance of Hester India. I'm pleased to say that our profit has increased by 30%. Both EBITDA and PAT also grown, driven by a focus on high-margin products, strong divisional performance and improved operational efficiency.
Moving on to the consolidated results. Divisional sales have increased by 34%, although the overall performance shows a dip due to the onetime sales in the last quarter. About Hester Nepal, Hester Nepal achieved a turnover of INR 6.3 crores in Q1 compared to INR 6.5 crores in Q1 FY '24 with a net profit of INR 2.7 crores in this quarter versus INR 3.6 crores in the corresponding quarter last year.
Hester Nepal has executed export orders against the government tenders and met domestic poultry vaccine needs. This quarter, it has also generated positive cash flows where we have fully paid all bank term loans. Speaking of Hester Africa. Hester Africa registered a turnover of INR 2.8 crores in Q1 compared to INR 1.7 crores in the corresponding quarter. EBITDA turned around from a negative INR 95 lakhs to positive INR 37 lakhs. However, the quarter ended with an overall loss of INR 4.9 crores, primarily due to the depreciation and unrealized foreign exchange fluctuation.
Hester Africa is rigorously engaging in international tenders and cultivating feed demand across multiple African countries. Overall awareness and demand for the vaccine has been on a rising trajectory. Looking forward, we've set a tone for the year by introducing new initiatives and discontinuing less benefit in Q1. Our focus is on leveraging segments within each division to their full potential.
We're optimistic about the Pet division having received great feedback on our products and packaging. In the poultry division, we look forward to government's support in launching the Avian influenza vaccine set to launch by Hester and other companies in the coming year.
This, along with our strategic product launches, tailored to market needs will strengthen our position further. In the Animal Healthcare division, significant investment and effort will be dedicated to R&D with a primary focus in the large animal vaccine need.
Thank you for your continued support and confidence in Hester. We are excited about the opportunities ahead and are committed to delivering sustainable growth and value to our stakeholders. And we now welcome your questions and look forward to a productive discussion. Thank you.
[Operator Instructions]
The first question is from the line of Gunit Singh from Counter Cyclical PMS.
So we have seen a drop quarter-on-quarter in the poultry division, so I mean can it be attributed to higher maize prices and low broiler prices in Q1? And also, I mean, looking at the current trend of higher maize prices and broiler prices going down. So I mean, how the poultry division was impacted by this looking at the current situation. Right now we are in July?
Yes. This is Rajiv Gandhi over here. Your first sentence was not clear. We could not hear you properly. But from what I read, you expressed a concern on the downtrend of the Poultry Healthcare division. I think I'm not understanding what you are referring to, but our sales closed in Q1 at INR 40.77 crores as against INR 30.29 crores in the corresponding Q1 of last year, which is a 35% growth. So may I know what are you referring to?
Sir, I'm referring to quarter-on-quarter sales basically. And also, I mean, you're talking about the current trends in maize. It is learned maize prices going up.
Current trend on the maize price going up.
Yes, the current trend on the maize prices going up and et cetera.
Broilers prices going down.
Broiler -- I think you may be referring to the market prices of broiler. This is Shravan month wherein normally, there is always a dip in the broiler prices. This is a cyclical issue every Shravan. But seeing the overall trend, the poultry industry to whom we supply poultry vaccines and health products is at -- in a reasonable good situation as what it was compared to in the last earlier 2 years. And in fact, the feed costs have marginally gone down for the poultry farmers.
So is that impacting our business in any way currently in we're in Q2 right now? So are we seeing any negative trends in the business -- poultry segment?
No. We are not seeing any negative trend, and we really don't see and if you look at today's broiler price or yesterday's or 10 days and we express our concern. I don't think that concern is a valid concern. I think you should not worry about our progress based on today's broiler prices.
All right. So I mean we are seeing a healthy Q2 as compared to last year?
Yes.
I mean what is the maximum revenue potential from Nepal, Africa as well as India units? And what is the current capacity utilization in all 3?
In Africa, the total utilization could give us approximately sale of approximately yes, total -- yes, around INR 60 crores in Nepal. In India, we have just -- I don't have these figures over here right now, on what would be the total sales. See one more thing you need to understand is that the sales depends upon the product mix. There are poultry vaccines, which are sold in 1,000 dose packs. There are large animal vaccines, which are sold in 2,500 dose packs. So all this is reasonably subjective and we have just -- we will be commencing on our expanded capacity for which the expenses have already been incurred and our freeze drying capacity would be going to more than double than what it is at this point of time.
Sir, when is this commencing?
Sorry?
When will this capacity come in?
Q3.
But currently, we have not -- I mean, we not have full utilization. So how do we expect -- so I mean new capacity coming in? What's the products we are launching and I mean what is the rationale bringing in [indiscernible] even current capacity is not fully utilized?
Yes. Again, your voice is coming in a very broken manner. Can you repeat the question?
Yes, is it better now?
Yes.
Yes. So I'm saying when even the current capacity is not fully utilized, what gives us the confidence of bringing in new capacity and that it will be utilized to optimal levels?
No. I think our current capacity utilization has been near to full at Hester India and this is an expansion for which the expenses, the CapEx has already been incurred. So now it is only an upward trend. We are not talking about any CapEx over here. Also in Africa and in Nepal, there is no now additional CapEx that we are making to increase our capacity. So I'm not understanding the issue. I think whether I understand or not, the bottom line is that we have built a good capacity in India. We don't need to spend more. We don't need to spend in Africa. We don't need to spend in Nepal at this point of time. And we have a lot of spare capacity in Nepal as well as in Africa. That is our -- that is on our plan.
Sir, what is the outlook for FY '25 in terms of growth and the margins that we can expect for FY '24? And also with this new capacity coming in, in India, I mean, what kind of additional revenues can we expect as per the pipeline that we have in FY '26?
Yes, I would have Priya answer this. But please also keep in mind that we are not here to give any guidances, any confirmed forecast. We have not done that, we would not want to do that. Before I hand it over to Priya, all that I can say, we are on an upward trend on the top line as well as the bottom line, and we hope to continue this trend. Over to Priya.
I would just add on to what I said before. I think more than looking at the whole FY, I think what we see is that this quarter itself compared to the last quarter, divisional wise, it's shown a rise by 37%. So I think that is a good enough indicator. And I started off my talk by saying that this quarter has been a strong foundation in terms of the overall performance as well as profit. So that is what we will be maintaining through the financial year.
And would we be looking at improving our margins, historically, I mean, [indiscernible] effective margins. So I mean, what's the kind of outlook do we have in terms of the margin profile?
Our margins have already improved, as you can see in this result itself. So if you want to ask us quantitatively how much more, that's very, very difficult for us to really tell you. But I think you can keep this as a base and for the foreseeable future.
So [indiscernible] margin is sustainable?
Yes. Can we also have the next questions also, I'm sure people would be waiting in the queue.
Sorry to interrupt you, sir. I request you to come back for a follow-up question. [Operator Instructions]
The next question is from the line of Richa from Equitymaster.
Congratulations on a good set of numbers. Sir, my question is, what is the current data between vaccine and product revenue? And how are the -- how is the margin profile in each?
How is the -- sorry, we missed the word. What about...
What is vaccine and the products, what is the breakup? And how is the margin profile different for both the segments?
I think we would not really want to give the basic -- the breakup between vaccine, health products, et cetera, because this is how much ever more deep we go, then the next thing would be how much would be, again, poultry vaccines and large animal vaccines, et cetera. What we can say that vaccine business is at this point of time, relatively a bit larger than the health products business, and our focus remains to be on board equally and the growth potential in the health products is much more bigger than what it is in the vaccine. So this is the way we -- this is just a true market indicator. In terms of profitability, vaccines are relatively more profitable in terms rather than the health products. So this is what it is.
Okay. Fair enough. And sir, my second question is that in last quarter, there were some challenges that we were facing in Africa. So of course, there has been better performance. But with regards to those challenges, it was related to currency and the government orders were delayed. Can you just give us some sense of if the things have improved on that trend? Or is it company-specific effort that is leading to better performance in a challenging market condition? What kind of outlook do you have for Hester?
The outlook for Hester Africa for our plant in Tanzania, you asked specifically on foreign exchange and orders. To answer the foreign exchange issue, there has been a devaluation. It's a routine thing, which is not much of a worry to us though there has been a devaluation. But at the same time, prices of products and all also have gone up. In terms of orders, we are very confident that the business that we were expecting -- we are expecting in the private sector as well as tenders from government, we see a very extremely high visibility at this point of time, as we speak, I would not want to make any indirect or direct mention on what is happening, but the Q3 and Q4 results in itself will prove the good progress of Hester Africa.
The next question is from the line of Shyam Garg from Ladderup Finance Limited.
Congratulations on a good set of numbers, sir. My first question is in line with the working capital cycle, if you can explain it a little bit, if you can throw some light on working capital, how it was in the corresponding year and the current year, quarter 1?
Just a minute, Nikhil?
So, working capital cycle in the sense of the inventories and debtors is what you are asking for?
Yes, sir.
Overall working capital needs of the company.
So overall, working capital needs from the channel inventories and debtors perspective believe around 4 to 5 months is what's the working capital, which we are required to maintain.
Sir can you give a little detail on inventory and trade receivable cycle segment?
See, inventories, I would say, are primarily the raw materials and work in progress for our vaccines. And for the health products, which are traded goods. So that the inventory we have to maintain at all our depots and branches. So around the 2 months is what is the inventory cycle for inventory perspective and around similar number is for the debtors because of the credit which we are giving in the market.
Okay, sir. And sir, my second question is with respect to if you can explain how the Africa business is going on and what are the expected number for the current, we are expecting from the same and currency devaluation would that stabilize now or not?
Yes. Rajiv here. I just answered that indeed to the earlier question. Africa is showing a lot of positive signs towards orders coming in from the -- within a few months' time. And even the distribution network that we have created, all that I can say that we will be only going up in a geometric progression from where we are at this point of time, you could be rest assured of that.
And the African market it is a tough market entry barriers, but once in it, we are there because there is very less competition and plus the distribution channel, which we have created via our other company in which we have invested Thrishool Exim. So we are focusing a lot on distribution and marketing, which is actually a very big thing in Africa because it's -- it is not that there is no market. It is that the reachability of products at the last level, that is, which is important, and we are focusing on that.
The next question is from the line of Manish Jain from GormalOne LLP.
Just wanted to know, you mentioned about low pathogenic avian influenza vaccine. When are you all targeting to launch it in India and outside India?
I think we are planning to do it in Q4 this year, Q4 or maybe Q1 next year.
Okay. And what can be the rough -- very rough likelihood of sales in 3 years in India and exports?
You see the potential for this H9N2 vaccine is reasonably good as far as India and exports. In fact, we see that export even would be a bigger potential place because not too many countries are manufacturing the H9N2 vaccine. In terms of market size, et cetera, I think we could discuss this on an individual basis where there is some subjectivity which nothing to hide or nothing, not to tell. But we -- I would avoid making any such quantitative forward-looking statements, nothing else at all.
Perfect. And my second question was, we are developing a new Brucella vaccine. So what's the key advantage over existing vaccine? And by when do we expect it to launch?
So, Brucella, we've not really mentioned about it in this quarter. I mean, of course, it's going to be a recombinant modified vaccine. So there is a lot of work being done in R&D, but we've refrained from really mentioning it now in any of the press note, still we see something actually coming out. Having said that, it's just going to be a modified version of the conventional vaccine. It's going to be very, very safe. Brucella is a zoonotic disease where it can transmit to the human who's vaccinating, but this will ensure that the safety level is going to be very high, and it's also going to be performing better in terms of the use of it, which is to enhance productivity in the cattle.
And one more thing that first it is going to be a modified vaccine. It will be safe for the...
Sorry to interrupt you sir. Your voice is getting echoed.
My voice is getting echoed?
Yes, sir.
I don't know how this has suddenly happened.
Yes sir, it is better. It is good to go.
Yes, okay. So the Brucella vaccine, which is under development is mainly as safe for human beings who are going to be vaccinating the cattle. So that's something which is extremely important on the safety and on the efficacy, it does not reduce the efficacy from this current S19 Brucella vaccine, which is being currently administered.
The next question is from the line of Ankit Kanodia from Smart Sync Services.
Congratulations on a good set of numbers, sir. Sir, I'll just rephrase one of the questions of the earlier participants. I'm not looking for exact numbers, but I mean approximately, if you can just give us some sense of how big the -- or how much of capacity we utilized and how much is unutilized? Some numbers or some direction. I'm not looking for exact answers, but some approximation as to how big we are in -- we can go in Africa, India and Nepal?
As I told you in Nepal, we can go up to INR 50 crores to INR 80 crores depending upon the product vaccine, product mix. At this point of time, we are utilizing only 30% of our capacity in Africa, it is only 70 -- in Africa it is only 10%, sorry, of the capacity. And in India, we have utilized approximately 80% of our capacity. And once this model gets into operation, our capacity utilization at that point of time would be approximately 45%.
That was very, very, very helpful. And sir, just regarding the poultry vaccine and the poultry market in general. So in the past, when we look at last, say, 8, 10 years, what we have seen is that generally followed cyclical pattern where 2, 3 years of downturn gets -- after that, we see a 2-year -- at least a 2-year period of good times in terms of demand for the vaccine. So do we expect something like that has begun over the last 1 or 2 quarters?
I would say the vaccine market, the poultry industry rather is right now on an upward curve at this point of time. So we can expect this upward curve to remain for a good period of time. It's just -- it has recently begun. But at this point, I would also like to make -- mention that Hester Biosciences as a company is not dependent upon the poultry industry and its status. At one time, yes, before 10 years, 15 years, we were a poultry vaccine manufacturing company, which made us depend completely on poultry and these cycles would have impacted us a lot. But now with 3 divisions, poultry, animal health as well as Pet, the fastest-growing division out of the 3, of course, because it has a small base.
Our relative dependency on any one division has become reasonably less the percentage between poultry and animal health is also somewhere like 55:45 or 60:40. So we are reasonably covered and -- so that's what it is. And of course, with the pet division growing up, that would again add on to the -- our philosophy on not being dependent on any one division. Your question was not exactly with this, but I presume that was the intent. Therefore, I made these comments.
The next follow-up question is from Richa from Equitymaster.
So my question is that in the press release, you have mentioned that the brands in the trade market are growing at 8%. If you could just elaborate a bit more on how is the profitability different in a brand versus maybe what's a nonbrand? And what is the share of that? How is it moving? What kind of mix do you see there in the future that could help?
I think what you're mentioning is what we mentioned regarding the key brands -- animal health, is that what you're mentioning?
Yes. I mean you have given a figure, right, that it has grown 8% and it will lead to better margin, leading to better profitability. So I just wanted to know that how is -- like what percent of the business can be called branded? And how has this mix moved? What do you expect in terms of future? How is the profitability different?
No, by brand, I mean, our specific Hester brand is what I meant, but it meant 8 products in a specific category on which we have our focus. Either it has to do with the margin they have or it has to do with how good they are performing preference in this segment of our customers. That is a couple of these things together make it our focus brand and that has grown by 8% on a quarter-on-quarter basis. And we are not comparing any branded, non-branded. That's not what the comparison is. In fact, the word brand you can disregard. It just means certain focused product.
The next question is from the [ Anshul Saigal ] from Saigal Capital Advisors LLP.
My first question is, what is the revenue contribution from Africa? And is this a higher margin as compared to the India and Nepal business?
Africa contribution -- it's there, we have given the consolidated -- the sales number is there. We are just looking at that. The margin contribution, it is INR 2.8 crores in our consolidated total turnover, which is INR 82 crores, right?
No, INR 82 crores is the total.
Yes, total. So out of INR 82 crores, INR 2.8 crores is what has come from Africa. It's mentioned on Page 3 of our press note. In terms of gross margins, it is more or less in line with what we are in India.
More or less in line, okay. My second question is on that question of capacity that you just addressed, it seems like on full capacity from our business, we should be somewhere in the region of INR 800 crores to INR 900 crores in revenues. Is that a fair estimate?
It's honestly very, very difficult to really equate and make a math equation out of this because like we said, it really depends on the product mix. We have vaccines ranging from 5 dose to 1,000 dose, even 2,000 dose in poultry. So really won't be very accurate for us to say 800, 900, 1,000. It's really, really difficult.
And to be putting it very honestly, all the total of this will not total to INR 900 crores.
Got it. And my final question is that we have, in the past, done 33%, 34% kind of margins. And in this quarter, we've seen a significant uptick in margins. As Ms. Gandhi just mentioned that this should be looked at as the base for margins in the year. By when do we estimate that we'll reach previous margin? Is that on full capacity utilization that we'll reach there?
It is our internal determination to reach to the margins as what you just asked in your question. And please do keep in mind one thing that those margins were at a time when there were only vaccines and there were no health products and that too only poultry vaccines where the cost of distribution, marketing were -- are relatively low because it's more institutional business as far as poultry vaccines. .
Since that time till now, we have added health products in poultry, large animal vaccines, large animal health products as well as pets. While the product mix that we are working towards is to improve our current bottom line, improve into our profitability. It is our endeavor to reach that, and we are working towards that. At least this quarter has shown us that a few a little bit of tweaking that we have done. It has helped us to improve our margins tremendously. The endeavor continues to be in that direction to give you a time line on that would be a little difficult at this point of time. But we are working on it.
Sounds good. I have 1 final question, if you permit quickly, if I can ask. So the question is that you spoke about the re-modulation of the India business -- India capacity to vaccines. And that is animal vaccines. Now as we understand, this was a capacity which was built for human vaccines, and it has been remodeled for animal vaccines. Was there some write-offs taken in this capacity in the past? Is the write-off expected in future some costs that were incurred in transferring capacity from one sort of utilization to the other?
I understood your question. You're referring to the DS the bulk antigen for the COVID vaccine for which we have set up a BSL-3 facility, which we have made an application to the Government of India to allow us to repurpose this for other vaccines, animal vaccines. We will be using the same facility to make a few vaccines which are already in our pipeline or one for which we already have a license. There would be a minor modification, not really much towards converting into our current usage, it would only increase our capacity. It would not lead to much of a financial CapEx.
The next follow-up question is from Richa from Equitymaster.
My question is, how much investments have we made in Africa subsidiary?
Africa, totally the investment is USD 20 million is the total investment made in Hester Africa, our plant in Tanzania.
Okay. And sir, in the last call, I think you're saying that the pet division trend has actually kind of become more [indiscernible] to what you are expecting it. So I just wanted to know the investments we have done so far and has that -- I mean, with the growth this quarter, I mean, is your outlook better than what it was last year? Do you plan more investments? And if so, how much?
So as you can see this quarter, we've already crossed INR 1 crore, which obviously took more time in the last financial year. So yes, as I mentioned, the division itself -- I mean the pet segment has only grown by 8% to 9%, there definitely has been an impact post COVID, there has been lower pet adoption. Having said that, I mean, our growth is still 29% to 30% on a quarter-on-quarter basis. Of course, the base is low. But still, I think, yes, we are still hopeful on this division. There are a couple of introductions issues that we are going to be doing in the coming quarters, yes.
Okay. So -- but is there any planned investments in this segment like that -- is there a number there?
There is no investment plan. I mean, we will only be focusing more on introduction of different kinds of products, our focus is more going to be on the healthcare division base as opposed to the other pet segment, which is gaining a lot of popularity, which is more into grooming and acceptance, et cetera. That's not something that our focus is going to be, which is a very crowded market. We're going to be focusing more on prescription-based health care-related solutions.
Okay. And just one more question, if I may. What is the -- could you share the breakup between tender business and private business maybe for the revenue -- for the quarter or maybe last year some kind of idea?
I think these breakups, ma'am is difficult proposition, not that there is too much of proprietary in that information, but we would not want to get into. We are not even sitting with these paper exactly on breakup between tender and market. But our main business is definitely private market. That is our focus for sure.
The next follow-up question is from the line of Manish Jain from GormalOne LLP.
Just wanted to learn about the lumpy vaccine. What is the key difference between -- or first of all, is there a difference between the lumpy vaccine that we are developing in India and what we have launched in Africa? That's the first question. And second is, when are we likely to launch this updated LSD vaccine in India?
Okay. Now lumpy skin disease vaccine introduced by -- in Hester Africa is with the Neethling strain which is internationally used for LSD vaccine. I'm using the short name LSD for lumpy skin disease. For -- so we are using the Neethling strain. And in India, we are using the strain isolated within India by IVRI and technology acquired from IVRI? So this is the basic difference between the Indian LSD and the African LSD. The African LSD is already commercially launched. We are supplying in a few African countries, and we have even made a supply to one of the Central Asian countries, while in India, our LSD vaccine, we hope to introduce it sometime later in the next calendar year that is in 2025 later part.
But this launch of it later does not impact the sales at this point of time because we are already supplying the Goat Pox vaccine, which is giving a very high immunity in cattle against lumpy skin disease. But it is always better to have a more specific vaccine -- and therefore, we will be manufacturing and launching the lumpy skin disease vaccine.
I would also just like to add, whenever we give a tentative time line of launch, whether it has to do with the lumpy skin or the Avian Influenza or Brucella, these are all based on a set of assumptions and where we are at today, regulatory standards in India are getting very stringent even in the veterinary health care sphere. These time lines sometimes are not even in our control, but we are working towards the development and the launch. However, there are certain external factors, which are not in our hands, which can make the time lines which we mentioned here on record vary.
Yes, yes. We understand. In fact, this acts as a huge entry barrier for anyone else, given that your portfolio is the largest in India. And just wanted to get an insight on the PPR vaccine, where the outlook because the African market and all the other markets funds got diverted to COVID fight. Have you seen any trend or improvement in the PPR vaccine outlook?
Point number one, FAO and many other world such NGOs, et cetera, keep on reminding us make sure that your capacity is enhanced because PPR is going to be required in a very big, very big manner. Now that -- these are sentences coming from all of such agencies. Point number two, it is very evident now that there is a high focus on PPR independently, even in countries because what has happened is some of the countries have not kept their dependency on international funding, and they have started even budgeting for themselves, even Tanzania is considering to budget itself for the PPR vaccine and 2 other vaccines. So overall, we feel that the PPR sale has been much lower, not only for us. Worldwide, the PPR requirement has come less, not because of any other reason, but because of this funding and all these situations, but as we see now, there is a little positive upward movement in PPR orders.
Ladies and gentlemen, we'll take this as the last question. I would now like to hand the conference over to the management for closing comments.
Yes, thank you all. As always, we try to answer as much as possible. Sometimes, we have constraints, sometimes we prefer deliberately not to address certain points, but it is all -- nothing to do with anything to hide or anything. It is just because of normal business reasons. That is what we do. So please do understand that and keep in mind. And as always, it's been a pleasure interacting with everybody and hope to again reconnect with you in our next call. Priya?
Yes. So in continuation to this, as I mentioned already that Q1 has been quite promising for us as you all have also seen the results. And we owe it to you all to maintain this positive trend and positive trajectory. We may not have been able to answer every single question. There is a time constraint also sometimes it gets a bit too specific, but we're always open to connecting on a personal level, with any one of you, each one of you at any point of time. Thank you.
Thank you. On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.