Q4 Resuts: Biocon’s Profit Meets Estimates Buoyed By Strong Growth In Biologics Unit
Biocon Ltd.’s profit for the March quarter beat estimates due to strong growth in its biologics business.
Biocon’s three main businesses—biologics, small molecules and research services—grew at 87 percent, 11 percent and 31 percent, respectively, in the three-month period, according to its exchange filing.
The next wave of biosimilars is going to provide opportunities and growth momentum for the next five years.Kiran Mazumdar Shaw, CMD, Biocon
The Bengaluru-based biopharmaceutical company expects the unit to “deliver handsomely” in the future, its Chairman and Managing Director Kiran Mazumdar Shaw said. Biocon has made huge investments in the biologics business and it would bring huge opportunities for the company, Shaw told BloombergQuint in an interview.
Other Highlights (YoY):
- Revenue rose to Rs 1,529 crore from Rs 1,169 crore.
- Net profit spikes 63.9 percent to Rs 214 crore.
- Ebitda jumped 73 percent to Rs 403 crore.
- Margins improved by 650 basis points to 26.4 percent.
What Went Wrong
Biocon’s branded formulations business, however, failed to deliver. The unit’s revenue declined 11 percent to Rs 133 crore, according to the filing.
“This (branded formulations) is a very small part of our business,” Shaw said. The business was affected by internal and external factors such as price control measures issued by several industries, including India and the U.A.E., she said.
The slowdown, she said, is not a one-off for the segment as headwinds are likely to continue for the first half of the next fiscal. But Shaw said she's confident that the company’s other segments would compensate for the offset in the future.
Watch the full conversation here: