Biocon posts growth of 64% in net profit at Rs 213.7 cr during Q4

Biocon chief Kiran Mazumdar-Shaw.
Biopharmaceutical firm Biocon Ltd on Thursday posted a growth of 64 per cent in net profit at Rs 213.7 crore during the quarter ended March 31, 2019, as compared to Rs 130.4 crore during the same period last year. Its research services subsidiary Syngene reached a milestone of Rs 100 crore in net profit during the quarter on a standalone basis.

Total revenue during the quarter grew by 26 per cent to Rs 1557 crore compared to Rs 1237 crore during the same quarter last year. The performance was led by the growth in biologics and research services, supported by small molecules business, said Kiran Mazumdar-Shaw, chairperson and managing director of Biocon. Biologics revenue grew 87 per cent during the quarter, led by higher sales of its biosimilars Pegfilgrastim and Trastuzumab in developed and emerging markets. Meanwhile, the growth of branded formulations in India compensated for the decline in performance in UAE. 

In UAE, business performance for the year was impacted by uncertainty in the local market, including delays in product registrations with the local health authorities and repricing of branded generic products by the Ministry of Health.

Generic formulations grew on a low base, with the company focusing on vertical integration in the small molecule business, which saw a 11 per cent growth to Rs 472 crore during the quarter. Research services subsidiary Syngene crossed a revenue milestone at Rs 534 crore as against Rs 409 crore in the same quarter last year with a 30 per cent growth, while the net profit from the business also posted a milestone at Rs 100 crore during the year. The expansion of ongoing strategic collaboration with Baxter Inc led to the commissioning of additional infrastructure for Baxter.

EBITDA grew 43 per cent year-on-year at Rs 431 crore, with an EBITDA margin of 28 per cent for Q4FY19.

“Looking ahead in FY20, we expect to sustain the growth momentum across our business segments led by biosimilars. We expect to sustain core EBITDA margins despite higher R&D investments to fuel our future growth,” said Shaw.  The company has recommended issue of one bonus share for every one share held in Biocon, for its shareholders to commemorate the 40 anniversary of the company.

During the full year ended March 31, 2019, its net profit grew to Rs 905.3 crore compared to Rs 372.4 crore posted during the previous comparable period marking close to three fold increase. Revenue grew to Rs 5658.8 crore compared to Rs 4335.9 crore during the previous year, with a growth of over 30 per cent. 

"FY19 was a landmark year for the Biologics business, which reported a growth of 97 per cent, thus emerging as a key driver for Biocon’s incremental growth. Our three strategic business segments Small Molecules, Biologics and Research Services have reported a top-line of over Rs 1,500 crore each, this fiscal. A higher share of Biologics revenue boosted profitability as reflected in the consolidated EBITDA margin of 27 per cent for the full year despite a 34 per cent increase in Net R&D expenses," she added.

Net R&D expenses for the quarter increased 81 per cent to Rs 92 crore while Gross R&D expenses stood at Rs 166 Crore, corresponding to 17 per cent of its revenue (excluding Syngene).

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