Biocon Ltd Q1 PAT lower at Rs84cr but biosimilars and research services put up an impressive show

Biocon Ltd reported 3.94% growth yoy in total sales revenues for the Jun-21 quarter on consolidated basis at Rs1,761cr

Jul 23, 2021 01:07 IST India Infoline News Service

Biocon Ltd reported 3.94% growth yoy in total sales revenues for the Jun-21 quarter on consolidated basis at Rs1,761cr. On a sequential basis, the revenues were down -4.42% compared to Rs1,842cr in the Mar-21 quarter indicating that the COVID 2.0 impact was palpable on a sequential basis. Among the key segments, Biosimilars revenues were up 10% at Rs758cr while research services revenues were up 51% at Rs595cr.

With Biosimilars and research services verticals doing extreme well, the pressure came from the generics business. For the Jun-21 quarter, the generics business saw a yoy 22% fall in revenues at Rs486cr and that accounted for overall tepid sales revenues. The generics were hit due to the second wave of the pandemic. During the quarter, Biocon also strengthened its US portfolios even as its statins portfolio held on to its market share.

The EBITDA picture was actually pulled down by the Generics Business. Let us first look at the loss making portion of the business. The generics business saw EBITDA dipping sharply from Rs96cr to Rs29cr, putting pressure on operating profits. Despite the sharp growth in top line, the Biosimilars EBITDA was flat to slightly negative at Rs101cr while the Novel Biologics segment reported a loss of Rs-59cr, which is understandable.

The big boost on the profit front came from Research Services (the Syngene business), which saw EBITDA up almost 40% at Rs95cr. However, despite the positive profit performance from Research Services, the pressure came from flat profits in biosimilars, fall in profit in generics and widening losses in novel biologics. Net profit was down at Rs84cr in the Jun-21 quarter, although the profits would have been flat if you ignore the share of loss that Biocon has taken in Bicara.

Financial highlights for Jun-21 compared yoy and sequentially

Biocon Ltd
Rs in Crore Jun-21 Jun-20 YOY Mar-21 QOQ
Total Income (Rs cr) ₹ 1,760.60 ₹ 1,693.80 3.94% ₹ 1,842.10 -4.42%
Operating Profit (Rs cr) ₹ 194.50 ₹ 246.50 -21.10% ₹ 251.40 -22.63%
Net Profit (Rs cr) ₹ 84.40 ₹ 149.40 -43.51% ₹ 253.20 -66.67%
Diluted EPS (Rs) ₹ 0.71 ₹ 1.25 ₹ 2.12
OPM 11.05% 14.55% 13.65%
Net Margins 4.79% 8.82% 13.75%

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