Motilal Oswal: Biocon Q1 Logs Healthy Recovery In Biologics; Improved Demand Scenario For Generics
An employee in protective clothing observes a sample the research and development center at the Biocon Ltd. campus in Bengaluru, India. (Photographer: Dhiraj Singh/Bloomberg)

Motilal Oswal: Biocon Q1 Logs Healthy Recovery In Biologics; Improved Demand Scenario For Generics

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

Biocon Ltd. reported a 14.6% YoY increase in revenue to Rs 16.7 billion (in-line) in Q1 FY21, primarily led by:

a) 16% YoY growth in Generics (36% of sales) and b) a 19%/60% YoY/QoQ increase in Biosimilars to Rs 7 billion (41% of sales). Growth was dragged down by a flat Research Services at Rs 4.2 billion (23% of sales).

The gross margin (GM) contracted 290 basis point YoY to 63.9%. The Ebitda margin contracted at a higher rate of 530 basis point YoY to 24.7% (our estimate in-line).

This was attributed to a change in the product mix and an increase in other expenses / research and development cost / employee cost (up 120 basis point/ up 100 basis point/ up 30 basis point YoY as a percentage of sales).

Ebitda was down 5.6% YoY to Rs 4.1 billion (our estimate in-line) for the quarter. Profit after tax declined at a higher rate of 27.8% YoY to Rs 1.5 billion (our estimate Rs 1.9 billion), weighed by higher depreciation and tax rate.

Click on the attachment to read the full report:

Motilal Oswal - BioconQ1FY21 Result Review.pdf

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.