Bangalore:India’s largest biotechnology firm, Biocon Ltd, said its net profit rose 19% to Rs54 crore in the second quarter compared with the same period last year, as it earned higher margins from research services and licensing drugs to clients such as Abraxis BioScience Inc.
This was despite revenue growth slowing to 12% to Rs280 crore in the July to September quarter, against the 28% growth in the year-ago period, which the company said was due to the appreciation of the rupee against the dollar, the currency it bills the majority of its customers in.
Biocon earns 60% of its revenue from export of biopharmaceuticals and offering contract research services.
“Research services and technology are the two growth drivers,” said Kiran Mazumdar Shaw, chairman and managing director, Biocon.
Biocon, which sold its enzymes division to Novozymes in July for $115 million (Rs467 crore), is looking to acquire US or European companies in pharma research. “We are looking at an acquisition which gives us market access or help on our research front and adds to our product portfolio. Growth and profitability will continue despite the rupee appreciation and the loss of enzyme income,” added Shaw.
Biocon shares lost about 1.9% on the Bombay Stock Exchange to close at Rs505.30 each. The benchmark Sensex was down 3.83%.