Biocon profit down 46% to Rs91.9 crore in December quarter
Mumbai: Biocon Ltd’s consolidated net profit declined 46% to Rs91.9 crore in the quarter ended 31 December as interest and depreciation costs relating to its Malaysia facility rose. The Bengaluru-based company’s net sales rose 1.3% to Rs1,057.9 crore during the quarter from a year earlier.
While the profit missed analysts’ estimate, revenue was in line with expectations. A Bloomberg poll of 10 brokerages had estimated the company’s consolidated net profit at Rs109.4 crore and net sales at Rs1,049 crore.
“Our branded formulations and research services segments reported a healthy double-digit growth during this quarter. We expect growth in other segments to revive from early next fiscal,” Biocon’s chairperson and managing director Kiran Mazumdar-Shaw said in a press release.
Interest and depreciation costs rose 42% to Rs112 crore largely attributable to Malaysia facility, the company said.
“While financial performance this quarter has been soft, the regulatory advancement in our biologics business made during this period augurs well for the future,” she said.
Earnings before interest, tax, depreciation and amortization (Ebitda) declined 21% to Rs256 crore from a year ago. Ebitda margin narrowed to 23% from 30% last year because of lower licensing income, compounded by fixed and operating costs related to Malaysia operations, the company said.
Segment-wise, Biocon’s branded formulations business, which includes sales in India and the UAE, reported revenue of Rs156 crore, an increase of 27% from a year earlier, while research services business, operated under its listed subsidiary Syngene International Ltd, registered a growth of 17% to Rs387 crore.
Revenue of Biocon’s small molecules business fell 9% from a year ago to Rs369 crore. This business continues to face headwinds arising from pricing pressures and channel consolidation in the US but continued demand for immunosuppressants offset some of the pressure.
The company’s biologics business clocked revenue of Rs190 crore, compared with Rs222 crore a year ago.
“The plant requalification activities undertaken at our fill-finish plant led to production disruption and supply constraints for some products thereby impacting (biologics) sales. The plant has resumed commercial production, since then. Adjusted for licensing income, product sales grew 16% year-on-year with growth seen in both insulins and biosimilar antibodies portfolio,” Biocon said.
On Wednesday, shares of Biocon fell 1.1% to Rs634.60 on BSE, while the exchange’s benchmark Sensex gained 0.1% to 36,161.64 points.
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