Biocon Limited today announced its financial performance for the financial year ended March 31, 2006. Total income of the company increases by 9 % to Rs 793 crore. At the same time, operating profits decline marginally by 2% to Rs 234 crore. Profit Aafter Tax (PAT) declines 12% to Rs 174 crore.

The company increased dividend from 40% to 50% (Rs 2.50 per share) recommended by the Board. Earnings Per Share is at Rs 17.40 for the year. Its R&D investment increased by 76% to Rs. 76 crore.

According to the company release, Q4 2005-06 shows a 20% top line growth (Rs 215 against 178 crore) and 13% growth in PAT (Rs 48 against 42 crore) over the corresponding quarter for the last fiscal.

Revenues from the biopharmaceuticals and enzymes business grew 6% to Rs 688 crore from Rs 647 crore, contributing 87% to operating revenues in FY 2006. Revenues from Research Services grew 52% to Rs 100 crore from Rs 66 crore, contributing 13% to operating revenues in FY 2006.

Commenting on the results, Kiran Mazumdar-Shaw, Chairman & Managing Director, Biocon Limited , said: "I am pleased that we have sustained a healthy 30% operating margin for the Financial Year 2005-06 despite a fiercely competitive environment. This enables us to continue to invest in our discovery led research programs. The recent acquisition of the NOBEX portfolio has significantly enhanced our IP assets both in terms of patents as well as proprietary technologies which will play a key role in our innovation strategy for the future. The year ahead is also expected to see us entering the Oncology market with our novel antibody product, BIOMAB-EGFR for the treatment of head and neck cancers."

The year ahead will continue to be challenging due to uncertainties in market conditions and the impact of depreciation at our new facilities at Biocon Park. However, we expect Insulin to gain market share both in India and overseas markets. This, together with branded formulations and research services, will drive growth, she added.