Biocon’s December quarter profit rises 65% to Rs171.3 crore on strong sales
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Mumbai: Biocon Ltd’s consolidated profit rose 65% to Rs171.3 crore in the quarter ended December from Rs104.1 crore a year ago on the back of strong sales across segments.
The Bengaluru-based biotechnology firm’s sales were up 29.3% at Rs1,029.3 crore during the quarter, compared with Rs796.2 crore a year ago, while income from avenues other than its main operations more than doubled to Rs47.4 crore from Rs21.6 crore.
A Bloomberg poll of 14 analysts had estimated the company’s net profit at Rs137.7 crore and sales at Rs958.7 crore.
“Our strong performance in Q3 FY17 was led by robust growth of our biologics business with both insulins and biosimilar MAbs (monoclonal antibodies) gaining traction in Japan and emerging markets. Our small molecules and research services businesses also reported strong growth this quarter,” chairperson and managing director Kiran Mazumdar-Shaw was cited as saying in the company’s earnings statement.
Earnings before interest, tax, depreciation and amortization, an indicator of operating profitability, jumped 57% on year to Rs324 crore.
The company’s biologics business grew 61% on year to Rs120 crore, while small molecules business grew 24% to Rs390 crore. Branded formulation sales were up 18% at Rs123 crore.
Biocon’s research services business, which is operated by its listed subsidiary Syngene International Ltd, reported revenue of Rs317 crore in the December quarter, up 17% from a year ago.
The biologics segment saw some key developments in the quarter such as the US Food and Drug Administration’s acceptance of the company’s application for proposed biosimilar trastuzumab for cancer treatment and the European Medicines Agency’s acceptance of an application for the insulin glargine. Biocon also commenced operations at its insulin manufacturing unit in Malaysia during the quarter and has got a three-year contract from Malaysian health ministry for rh-insulin cartridges and re-usable insulin pens for diabetes patients.
The company’s spending on research and development stood at Rs85 crore, up 25% year-on-year.