Mumbai: Bangalore-based Biocon Ltd, India’s biggest biotechnology company, said its profit, including that of units, declined 72% in the first quarter when it took a mark-to-market provision of Rs26 crore due to rupee fluctuations.
Net income fell to Rs15.02 crore from Rs53 crore a year earlier, it said in a statement to the Bombay Stock Exchange (BSE). Revenues rose to Rs277 crore from Rs272 crore.
Besides the mark-to-market provision, “the absence of licensing income this quarter has had a disproportionate impact on profitability,” chairperson and managing director Kiran Mazumdar-Shaw said.
Marking to market is a practice that values investments according to their prevailing market prices and not at the price at which they were made.
The company, which last year exited its enzymes business, expects the licensing income to be significant in the current quarter. “We are making excellent progress on the research front with several programmes approaching a licensing phase over the next two years,” she said.
Biocon closed at Rs352.20, down 6.38%, on BSE.
Bloomberg contributed to this story.