Biocon has posted a 13 per cent increase in its net profit at Rs 225 crore during the quarter ended March 31, 2008. The consolidated revenue (excluding enzyme) increased 19 per cent from Rs 881 crore to Rs 1,044 crore. For the fiscal 2007-08, the company has registered a turnover of Rs 1090 which is up by 10 per cent over last year's Rs. 990 crore.
The company's board has also recommended a bonus issue in the ratio of 1:1 which is one free share for every shareholder holding a share. The board also recommended a 100 per cent dividend, of Rs 3 per share including a special dividend of 40 per cent (Rs 2 per share).
The operating margins is 31 per cent for the year which is an improvement of 2 per cent over the previous fiscal. The earnings per share is at Rs 22.5 for the year. R&D revenue expenditure increased by 26 per cent to Rs 48 crore, pursuant to the divestment of the Enzymes business.
Profit growth has been maintained at the consolidated level despite the divestment of the enzymes business, currency appreciation and increased depreciation. We have a strong Balance Sheet with high reserves and Rs 193 crore in net cash. Revenues from Research Services grew by 29 per cent to Rs 176 crore from Rs 136 crore, contributing 16 per cent to consolidated revenues in FY 2008, but currency appreciation and capacity expansion for future demand kept operating margins flat, stated Kiran Mazumdar-Shaw, chairman and managing director, Biocon Ltd.
"We have clocked the highest profits which is a notable milestone in our operations. Our capital expenditure has increased to support the business expansion that we anticipate across the Group. We expect the year ahead to realize a good return on these investments especially at Syngene and Clinigene. We have a strong Balance Sheet which we will use for strategic acquisitions and investments. The recent AxiCorp acquisition is a significant move that provides us key access to the European market. We intend to make similar inroads into other markets to expand our global footprint. We have delivered a 13 per cent increase in PAT despite a Rs 27 crore increase in depreciation. The strong financial base enables us to recommend a 1:1 Bonus issue that we believe will improve market liquidity to support Biocon's growing profile as a bellwether stock in the Life Science sector, she added.
According to Dr Arun Chandavarkar, chief operating officer, Biocon Ltd "Our focus continues to be on deriving operational efficiencies as reflected in the improved EBITDA margins and in progressing its R&D pipeline of novel and bio-similar products through the complex stages of pre-clinical and clinical development. Divesting the enzyme business has enabled management to sharply focus on our bio/pharmaceutical business. We are pleased with the beach heads we have established in various countries either through direct investments or through strategic marketing partnerships; we are confident that these relationships will deliver as and when our development programs reach the launch stage. We recognize the challenges that lie ahead in terms of broadening and deepening our skill base to deliver on these development programs but are confident of attracting and retaining the right talent. We are also conscious of the need to strike an optimum balance between short term profit growth and longer term R&D investments which will deliver reliable shareholder value".