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ICICI Direct: Biocon’s Stable Q1 Revenue Growth With Visible Recovery  

ICICI Direct: Biocon’s Stable Q1 Revenue Growth With Visible Recovery

Signage for Biocon Ltd. is displayed at the company’s campus in Bengaluru, India. (Photographer: Dhiraj Singh/Bloomberg)
Signage for Biocon Ltd. is displayed at the company’s campus in Bengaluru, India. (Photographer: Dhiraj Singh/Bloomberg)

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ICICI Direct Report

Biocon Ltd.’s Q1 FY21 revenues grew 14% YoY to Rs 1,671 crore (our estimate Rs 1,651 crore) mainly due to 18.9% YoY growth in biosimilars to Rs 692 crore. The Generics segment grew 16.1% YoY to Rs 599 crore. Research services segment remained flat YoY at Rs 422 crore.

Ebitda margins contracted 512 basis points YoY to 24.7% (our direct estimate 22.2%) mainly due to lower gross margins and higher research and development costs. Ebitda declined 5.5% YoY to Rs 413 crore against our estimate of Rs 366 crore. Adjusted profit after tax declined 27.6% YoY to Rs 149 crore (our estimate Rs 127 crore). Delta vis-a-vis Ebitda was due to higher depreciation and lower other income.

Biocon’s contract research organisation (CRO) arm Syngene contributes 31% of total revenues. The company caters to 362 clients including eight out of global top 10 global players. We expect revenues to grow at a compound annual growth rate of approximately 16% to Rs 2714 crore in FY20-22E.

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ICICI Direct Biocon Q1FY21 Result Review.pdf

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