Moreover, he added that though the Indian poultry industry has come out of the crisis due to earlier high prices of maize, the recovery has been slow, thereby continuing to push the sales down of our poultry healthcare division. "We hope to see a major boost in sales in the poultry healthcare division and are confident of having good sales through tenders supplies in the animal healthcare division in Q4," he added.
To address the market conditions, the company has temporarily changed the product mix with sales being derived from fast moving products rather than high margin products. This, however, impacted Hester Biosciences' gross margin. "We have already started rolling back to a more profitable product mix with our original forecasts. This would be evident in the coming quarters," Gandhi stated.
With the company strengthening its marketing team, thereby adding to its personnel costs amidst lower sales, Hester Biosciences
expects the results to be seen in the coming quarters.
"In the next financial year, we hope to see an upward spiral growth in sales with this bigger team. Due to the current market conditions, we have extended our credit cycle which has temporarily impacted our finance cost. We hope to restore the credit cycles by the financial year end," Gandhi added.