Biocon slips after weak Q1 performance

Biocon fell 1.65% to Rs 396.15 after the companys consolidated net profit declined 43.5% to Rs 84.4 crore in Q1 FY22 from Rs 149 crore in Q1 FY21.

Jul 23, 2021 10:07 IST capital market

Revenue from operations increased by 4% YoY to Rs 1,761 crore in Q1 FY22 from Rs 1693.8 crore in Q1 FY21. As compared to Q4 FY21, the companys net profit and revenue from operations have declined by 67% and 4%, respectively.

On the segmental front, revenue from Generics was Rs 486 crore (down 22% YoY), revenue from Biosimilars was Rs 758 crore (up 10% YoY) and revenue from research services was Rs 595 crore (up 41% YoY) in the first quarter. The Novel Biologics segment recorded revenue of Rs 11 crore during the period under review.

Research & development expenses increased by 12% to Rs 120 crore while manufacturing, staff & other expenses rose by 7% to Rs 1,371 crore in Q1 FY22 over Q1 FY21.

Profit before tax in Q1 FY22 stood at Rs 166 crore, down by 33% from Rs 249 crore in Q1 FY21. EBITDA rose by 1% to Rs 437 crore in Q1 FY22 from Rs 432 crore in Q1 FY21. EBITDA margins declined to 24% in the first quarter from 25% recorded in the same period last year.

Kiran Mazumdar-Shaw, executive chairperson of Biocon said, ?Biocon has seen a strong 41% YoY growth in Research Services and a steady growth in its Biosimilars business, reporting revenue of Rs 758 Crore, up 10% over the same period last year, and 14% over the preceding quarter. Consolidated revenues, at Rs 1,808 Crore, saw a muted growth on account of COVID-related operational challenges at Biocons API facilities, both in Bengaluru and Hyderabad.

Q1 FY22 P&L was also impacted by a share of loss in its Boston-based associate start-up entity, Bicara Therapeutics Inc. Excluding this share of loss, profit before tax was a healthy Rs 224 crore.

Novel Biologics are investment intensive and we will explore external venture funding to support clinical development for long-term value creation. Business sentiments are favorable for Biosimilars, Generics and Research Services.

Globally, we see a strong demand for biosimilars and generic drugs, given the growing emphasis on affordable drug pricing. Net Profit, excluding the share of loss from Bicara, was at Rs 142 crore and reported net profit was at Rs 84 crore.

The outlook for the rest of the year is promising with several drug approvals on the anvil, contingent to timely U.S. FDA onsite inspections in India and Malaysia, whilst Research Services continue to see rising demand.?

?John Shaw has decided to step down from the board effective the end of the annual general meeting this year, due to health reasons,? she added.

Biocon is an innovation-led global biopharmaceuticals company committed to enhance affordable access to complex therapies for chronic conditions like diabetes, cancer and autoimmune.

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