Biocon Profit Jumps 52% In Second Quarter Led By Biologics Business
Biocon Ltd. posted a net profit of Rs 147 crore in the second quarter.
Bio-pharmaceutical company Biocon Ltd.’s profit jumped 52 percent in the second quarter of financial year 2016-17 led by its biologics and small molecules businesses.
Profit before exceptional expenses rose to Rs 147 crore in the July to September quarter from Rs 97 crore in the same quarter of the previous financial year, according to the company’s press release. The consensus of analyst estimates tracked by Bloomberg stood at Rs 139.6 crore. The company had reported a net loss of 11 crore in the second quarter of financial year 2015-16 on account of an exceptional loss of Rs 108 crore.
Net sales grew 19.8 percent in the quarter-ended September to Rs 940.4 crore from Rs 785.2 crore in the same quarter last year. The figure was lower than the Bloomberg consensus estimate of Rs 991.8 crore.
Earnings before interest, taxes, depreciation and amortisation increased 42 percent to Rs 240 crore against Rs 169 crore year on year. The EBITDA margin expanded 400 basis points to 25.2 percent.
The company spent Rs 65 crore on research and development during the quarter, which was 6.8 percent of its net sales. R&D spends went up 14 percent year-on-year.
Revenue from the biologics vertical grew at 34.4 percent through the quarter to Rs 156 crore from Rs 115.7 crore a year ago.
Our performance in Q2FY17, was led by strong growth across small molecules, biologics and research services. Expansion of our biologics footprint in emerging markets and licensing agreements boosted the revenue further.Kiran Mazumdar Shaw, Chairperson and Managing Director, Biocon
The company’s contract research arm, Syngene, contributed about a third to Biocon’s revenue.
The small molecules division, consisting of differentiated active pharmaceutical ingredients (APIs), posted a revenue growth of 15 percent to Rs 389 crore, led by better product-mix of differentiated APIs and a higher contribution from statins.
Sales in emerging markets of Latin America and Africa and Middle East regions as well as sales to India-based customers servicing the needs of the U.S. market made a significant contribution to the improved performance of this business, the company said.
In the generic formulation business, the company received its first ever tentative approval from the U.S. Food and Drug Administration in the second quarter for generic rosuvastatin calcium tablets to treat high cholesterol.