Biocon, leading premier biopharmaceuticals with consolidated revenues of Rs.4,000 crore plus, has posted consolidated adjusted net profit of Rs.148.4 crore during the fourth quarter ended March 2017 as against Rs.86 crore in the corresponding period of last year, a strong growth of 73 per cent. However, after adjusting Rs.268 crore on account of deferred revenue recognition pertaining to rh-insulin development and associated taxes during quarter ended March 2016, its net profit declined by 58.1 per cent to Rs.148.4 crore from Rs.354.4 crore. EPS worked out to Rs.6.49 as against Rs.16.97 in the last period.
Recently, the company announced bonus shares in the ratio of 2:1 and equity dividend of Rs.3 each for equity share of face value of Rs.5 each. Biocon scrip opened lower at Rs.1,099 on BSE today as against its yesterday's close of Rs.1,119.60. The scrip declined further by over Rs.24 to Rs.1,095.45 in the afternoon session.
The company's consolidated net sales declined by 2.1 per cent to Rs.925 crore from Rs.945 crore in the same quarter of last year mainly due to delays in approvals in some emerging markets, discontinuance of some in-licensed products and impact of the fire at Syngene. The sales of small molecules declined by 2.6 per cent to Rs.395 crore from Rs.406 crore and that from research services also declined by 14.8 per cent to Rs.283 crore from Rs.332 crore. However, its sales of biologics moved up by 6.6 per cent to Rs.163 crore from Rs.153 crore and that of branded formulations went up by 24.9 per cent to Rs.131 crore from Rs.105 crore. Other income increased to Rs.43 crore from Rs.16 crore. Its R&D expenditure declined by over 35 per cent to Rs.65 crore from Rs.99 crore.
Kiran Mazumdar-Shaw, chairman and managing director, stated: “We have closed the year FY 17 with a strong revenue growth of 18 per cent led by a sturdy performance of our biologics as well as small molecules businesses. On a full year basis, our EBITDA rose 34 per cent, while neet profit before exceptional item reported a robust growth of 54 per cent. Our revenue growth was muted in Q4 FY 17. Our EBITDA margin at 24 per cent in Q4 reflects a healthy operational performance. Our net profit for Q4 at Rs.135 crore represents a growth of 75%, after adjusting for an exceptional item in Q4FY16.”
“FY17 was a landmark year wherein we established our credibility as a global biosimilars player with the launch of Biocon’s insulin glargine pen in Japan and submission of five regulatory filings of our biosimilars in the developed markets of US and EU. Our Malaysia facility became operational with the Malaysian government’s exclusive contract for Biocon’s insulins, which expanded our footprint in emerging markets. The multiple clinical and regulatory milestones crossed in our biosimilars business augur well for the future.”
For the full year ended March 2017, Biocon's consolidated net sales increased by 17.8 per cent to Rs.3,876 crore from Rs.3,292 crore in the previous year. Its net profit went up by 13 per cent to Rs.688 crore from Rs.609 crore. EPS worked out to Rs.31.18 as compared to Rs.28.04 in the last year. Though its other operating income declined by over 49 per cent to Rs.45 crore, its other income moved up by 98 per cent to Rs.157 crore from Rs.79 crore. Employees cost increased by 22.5 per cent. Its R&D expenditure declined marginally by 3 per cent to Rs.267 crore from Rs.274 crore. Exceptional income amounted to Rs.147 crore in the last period.
The company entered in new markets of AFMET, LARAM, NAFTA and CIS regions with some of its key statins, immunosuppressants and specialty molecules, which augurs well for this business.