Hester Biosciences Limited (NSE: HESTERBIO) Q4 2025 Earnings Call dated May. 09, 2025
Corporate Participants:
Priya Gandhi — Executive Director
Divyesh Maru — CFO
Rajiv Gandhi — Executive CEO, MD & Executive Director
Analysts:
Nisha Shetty — Analyst
Gunit Singh — Analyst
Rishabh Shah — Analyst
Utsav Adani — Analyst
Manish Jain — Analyst
Madhur Rathi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to Hester Biosciences Q4 and FY ’25 Earnings Conference Call hosted by ICICI Securities Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing star than zero on your phone. Please note that this conference is being recorded. I now hand the conference over to Ms Nisha Shetti from ICICI Securities Limited. Thank you, and over to you, ma’am.
Nisha Shetty — Analyst
Thank you. Thank you, Navia. Good afternoon, everyone. On behalf of ICICI Securities, I welcome you all on Q4 and FY ’25 earnings conference call of Hesta Biosciences and I thank the Hesta 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; Mr Divesh Maru, CFO. I will now hand over the call to the Hesta management team for the opening remarks. Thank you. Over to you, ma’am.
Priya Gandhi — Executive Director
Yes, hi. Good afternoon, everyone. This is Priya Gandhi, Executive Director, Hesta Biosciences, and thank you for joining us today for our Q4 and FY ’25 performance update.. FY ’25 has been an important year for Hester. We have focused on improving our operational efficiency and strengthening profitability, helping us build a solid foundation for the company’s future growth. On a standalone basis, our profit grew by 70% for FY ’25 and 30% in Q4. If we look at our overall revenue, it appears flat compared to last year, largely because the prior year included a one-time pharmaceutical export sales to an African country. However, if we compare the performance at the pure divisional level performance, we have achieved a growth of 12%. On a consolidated basis, our profit has gone up by 36% in FY ’25, reflecting the benefits of our operational improvements and cost management initiatives. Our divisional product sales have increased by 13%, again supported by steady demand across businesses despite of some market headwinds. Coming to divisional performances, speaking of the Animal Health, we have now combined the reporting of our Animal Health and Pet Care, reflecting the growing synergies across the ruminant and Pet Health segment. The combined division recorded an 8% growth in Q4 and 6% in FY ’25. Animal Healthcare remained the main contributor with stable demand for our goat pox and PPR vaccines under the National Immunization program, in which we have been participating very actively. We also strengthened our therapeutic and biosecurity product lines through the year. Coming to the Pet Care division, we saw a steady demand of therapeutics supported by stronger veterinarian engagement and increasing prescription-driven sales. We are also strengthening our marketing activities, focusing on targeted outreach to veterinarians and pet parents to build greater awareness and trust in our products. Additionally, we are preparing to expand into the prescription diet and supplements aimed at addressing the evolving market demand. Coming to the Poultry Healthcare division, our Poultry Healthcare division continued a positive momentum with our vaccine sales benefiting from higher demand and awareness around our Newcastle disease and Marix disease vaccine. We also launched a new feed supplement disinfectants, which are now starting to gain traction. Preparations of our Avian influenza vaccine launch are progressing well and we expect this to be a key growth driver in the coming years. Coming to the operational efficiency and profitability, a key achievement this year has been in improving our overall operational efficiency, which has strengthened our profitability. Some of the steps that we took include improving production performance and reducing base stage, improving inventory control, focusing on higher-margin products, managing administrative and overhead costs carefully. These actions have directly contributed to stronger margins and profits. Coming to the financial highlights, the standalone gross profit margins remained stable, supported by a better product mix and cost-control. EBITDA has increased by 8%, reflecting better capacity use and expense discipline. As mentioned earlier, our PAT grew by 17% in the year and 30% in Q4, clearly showing our focus on improving the bottom-line. On a consolidated level, we saw an even stronger profit growth, helped by better performance from our international business. On the international subsidiaries, Hester Napal has delivered stable profits with a net profit of INR1.2 crore in the financial year. It met both pick demand for the poultry health and export demand for immunization against PPR globally. Hester Africa reduced the net loss to INR10.2 crores compared to INR18 crores in the last financial year, backed by strong sales and tender wins the supply of PR and CBPP vaccines in the African continent. And we have also received the marketing authorization for a new life combination vaccine, which is the PPR plus sheep and gold box combined vaccine, which is an important development in the ruminant health. With increasing plant utilization and growing order of a growing order pipeline, the business is gaining momentum and we are steadily expanding our supply capabilities and regional presence. Looking ahead in the coming quarter and in the coming year, our focus will be on strengthening profitability through continued operational improvement, expanding the animal health pet care and the pet care portfolio to deepen our market reach, are supporting government efforts to tackle the antimicrobial resistance by expanding our preventive care and disinfectant products along with. Growing our international presence, especially in Asia and Africa, we are — we are confident that these two — these priorities will help Hester continue to deliver sustainable and profitable growth. And thank you all for your continued support. We now look-forward to your questions.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone phone. If you wish to remove yourself from the question queue, you may press star and 2. In order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first the first question is from the line of Guneet Singh from Countercyclical PMS. Please go-ahead.
Gunit Singh
Hi, sir. So I have three questions. First is, when will the capital work-in progress of INR176 crore get commissioned? Second question is why Hester Nepal revenues declined by 85% in Q4 if we compare year-on-year? And the third question will be when will the Hester Africa business break breakeven, when do we expect it to breakeven?
Divyesh Maru
Okay. And now the first question is the fill finish line. Okay. Now first. So first question is regarding the fill finish and BSL III facility that is lying under CB capital work-in progress. So in case of BSL III facility, we are awaiting some administrative approval from the, which is a authority for that. And for fill/finish activity, the expected timeline to have a capitalization is by Q2 this year considering the remaining batches to be commercialized and the regulatory approvals in the place?
Rajiv Gandhi
Yeah. Now the second question, can you repeat the second question?
Gunit Singh
Yeah. So why has Hester and Nepal revenues? Why have they fallen by 85% year-on-year in Q4.
Rajiv Gandhi
You see, as you are aware, Nepal plant objective was tender business and there is reasonable amount of — there is — sorry, I would not say reasonable amount. There is no pattern. The pattern, there is nothing like pattern. The order comes, it’s a surge, it’s a fall, it’s a surge, it’s trade. These are all mixed type of situations at our Nepal plant. So therefore, any fall at one point of time or any fall which you are correlating with the previous year may not be an accurate way of assessing the progress of our Nepal plant? Third question.
Gunit Singh
Okay. So sir, why — by when will do we expect Africa business to breakeven and what is the capacity utilization there?
Rajiv Gandhi
We hope that not this year, the next year, we hope two years we should take to break-even at Hester Africa because the African market, as you understand, is a very different market. We are one of the first rather the first to produce most of the vaccines, veterinary vaccines in the continent. While there are innumerable disease outbreaks, it is still a matter of educating the people which we are doing reasonably well at this point of time. And at the same time, the tender businesses which were to come nearly two years ago, but due to various slowdown activities, mainly due to the geopolitical reasons, these things have slowed down. Having said that, we are already having the tender for Tanzania and a government business, we see other one or two countries also tenders coming up. So to be on the safe side, we would like to say two years.
Gunit Singh
It. Sir, with the new capacity, the new capacity coming in, when do we expect it to reach optimal utilization?
Rajiv Gandhi
You are talking in India.
Gunit Singh
Yes, the capital works in-progress of 176 here, you mentioned it will — some part of it will be commissioned in Q2. So by when can we expect it to reach optimal utilization?
Rajiv Gandhi
No, no. You see, basically, we have done it to increase the capacity. It is an extension of this. So when you say optimal it — we are not able to understand that slowly it will grow utilization from 10% to 30% to 60% to 70%. So it’s a progression through which we are going. We are reasonably sure that by the time it is three years time, we should be reaching a good level of production from the new plant. Your word. Now you see your word optimal. I’m not able to answer that. I have quantified it.
Gunit Singh
Oh, it’s about it. Thank you. I’ll join the queue again.
Operator
Thank you. Participants who wish to ask questions may please press star and one at this time. We take the next question from the line of Shah from Bugal Rock PMS. Please go-ahead.
Rishabh Shah
Yeah. Hi, thanks for the opportunity. Sir, I have few questions. One is that why did you choose Africa as a country for expansion purposes? What was the thought process behind it? And what are your thoughts on Latin-America
Rajiv Gandhi
Yeah. So Africa is a continent where we see that the opportunities are big. It’s the next growing market. Therefore, we have chosen Africa. The animal population in the continent is reasonably large. And when I say animal population, I don’t mean the wildlife, we are mainly targeting the production animals, poultry, cattle, sheep, coat and swine. Wildlife is again another issue altogether and pets is another. These production animals are growing at a reasonable fast rate and more than the growth of the production animals, it is the awareness that is slowly coming in into the African continent and therefore, that is why we have chosen Africa as a continent. Latin-America, we have not put any thoughts in that continent at this point of time. One is far away in terms of distance, two in terms of very different from its in every which way than what it would be. And secondly, there is a bandwidth that every company has. We don’t see our capability in terms of bandwidth to reach-out to two big continents simultaneously. We are more than happy and we feel — I mean, we had never even thought of South America. You have mentioned that we hope that in years to come, we even try to address that market.
Rishabh Shah
So just a follow-up on this one. This one, when you apply for registration, how much time and money does it take for the take money does it take for the process and you’re getting the final approval in Africa?
Rajiv Gandhi
Now Africa, please understand it is a continent. People mistake Africa as a country, but it is a continent of 52 countries. So every country has a regime for registration and every country has a cost for registration. So it’s very different country-to-country. Though in Africa, they’re you know like the Gates Foundation as well as the countries together, they are trying to come to a common registration process, but it’s not yet been applied. Okay, per product.
Rishabh Shah
Okay. My next question is, in this kind of business, we receive a lot of client from government and also from other — lots of other organizations. So how much do we depend on these types of grant and how important is that these grants to support our business
Rajiv Gandhi
You are talking about the tender business, am I right?
Rishabh Shah
Yes, sir.
Rajiv Gandhi
Africa, see, when markets are primitive, the government in each of the countries try to push the business and as time goes by that government aided business gets converted into a private business. In India, earlier tender for poultry vaccines were also that today there is hardly any tender that comes out for poultry vaccines because it’s completely shifted onto the private sector. While the cattle sheep goods wine is still a fragmented market and the government tries to proper intervene and try to make sure that industry grows. Likewise, in Africa, that is the situation it’s in fact a little lower than what it is in India. And we are also ourselves, along with partners like the Gates Foundation, GalvMed, trying to create a network for creating demand in the private sector, we are also succeeded in that. As you are aware, we have got a joint-venture, a part a partnership wherein we have an investment in the — the company’s name is exam which is solely into distribution and supply of animal health products as well as animal feed products and there is zero tender business, everything is going into the private sector.
Rishabh Shah
So the basic question was, we are in a way dependent on these grants, right, from the government.
Rajiv Gandhi
We are not — there are no grants. We are dependent on tenders and at the same time, we are trying to create the market through the private sector efforts. There is no grant that we are looking for.
Rishabh Shah
Okay. Okay, I’ll join back-in the queue. Yeah.
Operator
Thank you. We will take the next question from the line of Utsa Vadhani from Oakland Capital. Please go-ahead.
Utsav Adani
Thank you so much for the opportunity. I wanted to understand the Nepal tenders and the African tenders. These are from the government agencies or non-government agencies?
Rajiv Gandhi
They are country-specific government tenders.
Utsav Adani
Understood. And Nepal, I believe is an export tender, right? So that would be for which countries we would be exporting it for
Rajiv Gandhi
Mainly to FAO, food and agriculture organization, so our supplies would be directed to the places for which they have been tendered for.
Utsav Adani
Understood. Sir, previously in a con-call, you had mentioned that even influenza vaccine will be launched by Q1 FY ’26. So are we on-track for it or are we expecting some delays for it?
Rajiv Gandhi
Yeah. We have always maintained Q2. If I’ve mentioned Q1, I probably don’t recollect, but yeah, it would be the beginning of Q2 for sure.
Utsav Adani
Understood. Also, as a bookkeeping, could you inform us the capacity utilization across all three geographies that we are present in?
Rajiv Gandhi
We would not have that data ready with us while we are sitting on the capacity utilization exact figures, so it would be inappropriate to give you any approximate figures.
Utsav Adani
Thank you. I will join back-in the queue. Thank you.
Operator
Thank you. We will take the next question from the line of Madhur Rathi from Countercyclical Investments. Please go-ahead. Since the participant has disconnected, we will take the question from the line of Manish Jain.
Manish Jain
Yeah, hi. Yeah, it’s good to see that you have reduced your debt by INR32 crores in March ’25 on a consolidated basis compared to March ’24. So from keen to understand what is the capex plan for the current financial year, what’s the likely absolute increase in working capital and what’s the debt repayment plan?
Priya Gandhi
Yeah, Mr Manish, this is up. For the capex, right now, there is not much plan on it. As mentioned earlier, our fill finish is going to get commercially used now in — by Q2, latest Q3 and apart from that, we are just planning on our capex plans. It’s right now mostly to do with maintenance, etc., but new capex, right now there is not a concrete plan that we clearly give.
Manish Jain
And what about the need for absolute increase in working capital and debt repayment?
Rajiv Gandhi
So if you see our cash-flow for the year ended March ’25, I think the cash generated from the operations are roughly around INR70 c. So I think we are able to manage right now the repayment, which is for the current debt from our operations only. I do not, frankly speaking, any new working capital add-on looking at the current situation.
Manish Jain
Perfect. And in terms of — when I look at Africa, Rajiv was mentioning that you are looking to breakeven in conservative side in two years. So what’s the total accumulated losses for Africa right now?
Divyesh Maru
Hi,.
Rajiv Gandhi
Yeah. So as of now, total accumulated losses at Africa is roughly around INR45. That is accumulation. But as we mentioned that in two years, we’ll be break — it will be at a breakeven and for accumulations to be recouped, I think we’ll be needing one or two more years more than the two years. That is the projection I was
Manish Jain
No, that’s perfectly fine because what we have seen last year is just by INR11 crore increase in your sales in Africa, your loss has gone down by INR8 crores in Africa. So if you continue the same trajectory, hopefully breakeven could come sooner than two years. But
Priya Gandhi
No, I think — sorry, sorry to interrupt. Yes, I think we do anticipate the breakeven as mentioned earlier, one or two years, we factored that calculation also while developing the products, right now, the ones that are commercially being sold PPR, CBP, LSD is also commercialized. We are very — we are maintaining our margins very well. And so honest — so I mean, to be honest, I think the breakeven will come quite soon.
Manish Jain
Perfect. And one more question before I join back the queue. Traditionally, six, seven years back, we used to be at a 25% net margin level. Do you think Hester can reach that level in the next whatever timeframe?
Priya Gandhi
No, definitely. And that is our endeavor. This year, as you can see has been a strong base in wanting to reach that level. And even in our corporate presentations, if you see, we always mentioned our last 10 years trajectory and we are very mindful of the good years that we had with a very good profits and that’s what this year has been about, as you can see, and we are wanting to reach that level.
Rajiv Gandhi
We are very sure rather and we are determined in this case. We are very conscious of what question you asked that’s a question which we ourselves have in our minds to be very honest.
Manish Jain
Beautiful. Beautiful. I’ll join back the queue. Thank you.
Operator
Thank you. Next question is from the line of Madhur Rathi from Countercyclical Investments. Please go-ahead.
Madhur Rathi
Hi, thank you for the opportunity. I wanted to understand regarding the non-tender business in both poultry and Animal Health segment. So can we become a human supplement supplier or animal health product supplier to either export market or how can we increase our share in the domestic market? Because when I look at our competitor India, they have been — the revenue has been very constant and the margins have been constant as well. So what are you trying to do on that front to make our business less lumpy or less tender-driven?
Priya Gandhi
Our poultry business is not dependent on the tender at all. So whatever numbers that we have shown are purely, we Call-IT institute or trade business because there is no government intervention as such. And with respect to the Animal Health division, I think it’s approximately 50-50 wherein also the nature of the industry is such that the government intervention is required in order to immunise you know the dairy animal production animals and health products are something which gets sold-in the trade market and that is what our focus is in this year. And we are not an exact comparison to because is a vaccine company, while our endeavor is to be like a complete holistic animal healthcare company wherein we have various divisions. We don’t want to completely be dependent on one division. So we have different species we address to us, poultry, animal and health-care and hopefully even more species that we can add for is the —
Madhur Rathi
Are we facing an issue because I think the two, three big poultry players India is the ibase exports as well as Sugana Foods, all these guys have in-house vaccine production. So are we losing market-share to these guys in-houses of production? Is that the scenario currently? Or
Rajiv Gandhi
There is nothing like that we are losing market-share. Point number-one, was even before us in business. So there is no question of that way. And they are today the biggest in India therefore making poultry, therefore, they have a good reasonable good in-house in-house consumption. Am I able? Are you able to hear me through some lot of noise? Somebody is not on-mute or something, I don’t know yes. So yeah. Suguna had an animal vaccine plant which they have sold it to another company. So now it is no more an in-house poultry consumption manufacturing unit. ID poultry does not have any vaccine plant and they are more into exports of other products, definitely not poultry vaccines for sure. So now I hope that answers your question and as far as we are concerned, we are seeing ourselves as a pure animal health company and a company which has no other affiliation to any producer or any production of poultry meat or milk or bee for — sorry, not B for a meat or any of these things we don’t have that. We are a standalone animal health company and we are trying to progress. And we do feel that we should be putting in more efforts on the health products side as well to increase our top-line with the health products.
Madhur Rathi
Got it. So how are we trying to leverage our distribution network in the private market to increase our health products as well as our pet care prescription kind of products?
Rajiv Gandhi
It is a — that’s the main business model that we are — the whole network is created to actually create demand and supply and that is what our team has been doing. And we are just building that business, I have not understood your question actually.
Madhur Rathi
Sir, I’m just trying to understand, I agree with you 100% because we have created this network where we can try to introduce new products so that we can increase our sales. But sir, that hasn’t happened or it’s happening very slowly in our either animal health products or feed supplement kind of a product or the pet prescription kind of a product. So sir, I’m trying to understand when can we see a big jump or when can we see this offtake increasing at a very fast rate?
Priya Gandhi
I think we’ve historically been a poultry vaccine manufacturing company. This is our 38th year annual year now and our health products segment is only 10 years-old. So I think in the last one decade, we have been trying very hard to make reasonable product introductions, trying to have our unique formulations at the same time, look what — look at what the demand is and also introduce some products in which the demand is higher than the supply. So I think in years to come, as mentioned earlier, our focus remains on growing the health product segment so that we equalize there is no single dependency on just vaccine heavy product range and grow our pet care as well as animal Healthcare products segment.
Madhur Rathi
So ma’am, can you clarify like
Operator
Sorry to. May we request that you return to the question queue for follow-up questions as well several other participants waiting. Thank you. Next question is from the line of Rushab Shah from Bugal Rock PMS. Please go-ahead.
Rishabh Shah
Hi, thanks for the opportunity again. Sir, our collaboration in Egypt with Lova Pharma, can you tell — can you what has been happening in that phase and how are we expanding in these markets as well?
Rajiv Gandhi
And the collaboration activity with Nova Pharma in Egypt, there is a status quo at this point of time because of Egypt having its own reasons as a country in terms of foreign-exchange availability, et-cetera, etc. And that was a collaborative wherein we have agreed to give technology or some issues as technologies. But we also have a distributor, an exclusive distributor, specifically in Egypt to whom we are supplying our vaccines and we have our brand-name already present in the Egyptian market. Likewise, in many of these countries, African countries, Middle Eastern countries, we have our distributors through whom we do an exclusive — we have an exclusive distribution arrangement and who sell as well as create demand. What we have done now, we have also started appointing our own marketing people in a few countries in Africa. We have started-off by appointing two manager in two of the countries and that’s how — that is another step that we have recently taken and this is the way we are trying to create demand and then do the supplies.
Rishabh Shah
Thanks. Okay. So my next question is in one of the calls, you mentioned that H9N2 vaccine, not all countries are manufacturing. So there could be a big potential in that. So could you please let me know which countries you will be exporting and what is the potential?
Rajiv Gandhi
Yeah. It would be inappropriate for me to really give you names of countries where we would be exporting because that’s our business and we are in a competitive environment and I would not really like to specify country-wise thing. But for sure, once H9N2 is commercially available over here, we will be able to register in quite a few countries where we will be able to supply the H9N2 vaccine
Rishabh Shah
Okay, so what is the potential in that? How big could be the market and what do you see?
Rajiv Gandhi
In India worldwide what are you asking both about? In India, I think the H9N2 market, I’m not sure totally, but it would definitely be approximately, say, INR100 crore around INR80 crore INR100 crore market and world market is much bigger than that.
Rishabh Shah
Okay, fine, sir. Thank you. I’ll get back-in the queue. Thank you.
Operator
Thank you. Next question is from the line of Manish Jain from Gormal One. Please go-ahead.
Manish Jain
Yeah. Rajiv, just wanted to know in the Avian influenza, are we also covering HPAI, H5N1?
Rajiv Gandhi
No. H5N1 is not covered with H9N2 technically not with us not with anybody
Manish Jain
Okay because there is a shortage in US on HPAI H5N1
Rajiv Gandhi
No it is not covered in our vaccine and no H9N2 vaccine can give protection against h5 and 1 and India does not allow H5 when 1 at this point of time.
Manish Jain
Should opportunity arise, can that be done out of our Africa plant?
Rajiv Gandhi
It can be done even from our BSL III facility, but I do not see that opportunity — opportunity arising. These — there have been many discussions and I don’t see any opportunity — immediate opportunity arising out of that.
Manish Jain
Perfect. Perfect. Cool. I had few more questions. I’ll join back the queue.
Operator
Thank you. Next question is from the line of Madhur Rathi from CounterCyclical Investments. Please go-ahead.
Madhur Rathi
Hi, sir, thank you for the follow-up. Sir, I wanted to understand have we — like have we decided what are we going to manufacture from our BSL III facility or are we planning to go to the contract manufacturing route for this plant to just get the operating levels to a decent level
Priya Gandhi
We would want to manufacture our own animal vaccines itself which with now a few vaccines might require the. It is in discussion and we are planning to develop those and manufacture those in our BSL, our own vaccine.
Madhur Rathi
So are we looking to supply these to other countries other than Africa as well as Nepal or so have we like gone for some audits with foreign regulatory bodies or this is still in the stage that over the next round one and a half year when it commercializes, it will happen.
Priya Gandhi
Right now, our focus continues to be in Africa and parts of Middle-East and of course Central Asia, which I mean Nepal, India and Middle-East and Africa continue to be our focus territory.
Madhur Rathi
Okay. So what — and my final question would be, what would be the revenue potential from this facility or like over the next two to three years kind of what kind of revenues can we generate?.
Rajiv Gandhi
We are working on what vaccine to make, etc. So it would be very inappropriate to give any figure at this point of time. And I think this — we should get clarity within this quarter or the next quarter and that is the time when we will probably give our plan as even accepted by the government because BSL III facility was created under the COVID Suraksha program. So there are many agencies involved, etc. So I think it would be more appropriate once we get a clearance, then we talk on this in on a common platform.
Madhur Rathi
Got it. It. So there was a news regarding our capt cattle factory getting opened in Gujarat, that will reduce the semen cost for a dairy or a cattle farmer to much lower than what it was earlier. So can this help in increasing the vaccine demand as well as revenue for us or this shouldn’t have any much impact for us?
Rajiv Gandhi
If this dairy and all if it grows, it can help in marginally increase because four-week — I mean, even if they get into how many cows or buffalos will they keep, they are not going to go up by some 2,000, 5,000, 10,000. Even if they go up by 10,000, it is 10,000 doses. We are talking of doses in millions and billions. So we are happy that if there are such opportunities that come up in our own state, but it’s the total country that we are looking at.
Madhur Rathi
Okay, so nothing from the cost perspective, because for a far more I think it was earlier $100 or 100 rupees a dose that has been reduced to INR50 a dose. So that shouldn’t have any much impact on our demand for our product.
Rajiv Gandhi
So in the sense, sales will go up, but would — what is your figure, IN 100 to 50, I mean from where and what is the source of that amount?
Madhur Rathi
So this I’m speaking about so there is a semen product plant that has been set-up in Banaj Dairy, Dhama villagenaj cost of for the dairy farmer would reduce from INR500 rupees of those to 50 rupees.
Rajiv Gandhi
Yeah, but that is cemen. We are talking of vaccine. They are two different product if demand grows, we are happy, we will surprise, but we can’t base our projections based on that anticipated increase in cattle population in a particular state.
Madhur Rathi
Got it, sir, thank you so much and all the best.
Operator
Thank you. As there are no further questions, I would now like to hand the — conference over to the management for the final conference.
Priya Gandhi
Yes. Thank you all for joining our Q4 quarterly call update. As mentioned, FY ’25 has been an interesting year. We have focused on mostly our improving our operational efficiency and strengthening our profitability. And going-forward, we will have the same endeavor along with that also focus on growing our divisions and demand and the territories, specifically in the continent of Africa. And I would like to thank you all for your continued support and trust and see you all-in the coming quarter. Thank you all.
Operator
On behalf of ICICI Securities Limited, that concludes this conference. Thank you for joining us and you may now disconnect.