Sunday, 29 April 2018

Q4 results: Biocon consolidated net up by 3% to Rs.153 Cr, dividend of 20

Biocon, a Rs.4,100 crore leading innovation-led bio-pharmaceutical company from Bengaluru, has posted small growth of 3 per cent in consolidated net profit during the fourth quarter ended March 2018 to Rs.153 crore from Rs.148 crore in the corresponding period of last year. However, its EBIDTA improved strongly by 30.3 per cent to Rs.300.5 crore
from Rs.230.7 crore. The company's consolidated net sales increased by 25.6 per cent to Rs.1,170 crore from Rs.931 crore. Its other income went up by 56.3 per cent to Rs.68 crore from Rs.43 crore. EPS, after considering rise in equity capital due to bonus issue, worked out to Rs.2.21 as compared to Rs.2.16 in the last period. The company issued bonus shares in the ratio of 2.1 during June 2016 and its equity capital increased to Rs.300 crore from Rs.100 crore. 

After the announcement of financial performance, Biocon scrip declined by Rs.11.5 to Rs.651.75 on BSE from its previous day's close of Rs.663.25. Scrip touched to intera-day high at Rs.674. The company's sales of small molecules increased only by 7.8 per cent to Rs.426 crore during the fourth quarter from Rs.395 crore in the similar period of last year. The sales from research services went up by 44.7 per cent to Rs.409 crore from Rs.283 crore and that of biologics segment increased by 47.5 per cent to Rs.241 crore from Rs.163 crore. The sales of branded formulations moved up by 13.1 per cent to Rs.149 crore from Rs.131 crore. Its employees cost increased by 32.5 per cent to Rs.257 crore and interest burden by 238 per cent to Rs.17 crore. Its net R&D expenditure stood at Rs.51 crore while gross R&D expenses were Rs.98 crore. 

Kiran Mazumdar-Shaw, chairperson and managing director, said, “We concluded the year with a strong revenue growth of 27% in Q4FY18 led by biologics and research services business, which grew 47 per cent and 45 per cent, respectively. Our traditional small molecules and branded formulations businesses also turned in a positive performance this quarter. We crossed a key milestone in Q4 when our insulin glargine, received regulatory approvals in the developed markets of Europe and Australia. Our bio-similar Trastuzumab also got approval in Turkey.”

The muted FY18 performance was on account of continued pricing challenges in the generics business coupled with a planned plant shut down for re-qualification and lower licensing income in the biologics business. In addition, operational expenses related to our Malaysia facility impacted the bottom line. However, a positive Q4 is indicative of a normalized business trend. Recent approvals of our biosimilars along with the strong performance of Syngene are expected to positively impact overall performance in FY19.” 

Semglee, insulin glargine co-developed by the company and Mylan, is the first biosimilar from the partnered portfolio to be approved in the developed markets in EU and Australia. It also received approval from South Korea and Turkey for Insulin Glargine and Trastuzumab respectively. Biocon and Mylan agreed to accelerate the introduction of biosimilar Adalimumab in Europe.

For the full year ended March 2018, Biocon's consolidated net sales increased by 5.3 per cent to Rs.4,130 crore from Rs.3,922 crore in the previous year. Its other income moved up by 31.3 per cent to Rs.206 crore from Rs.157 crore. However, EBDITA declined by 8.9 per cent to Rs.1,035 crore from Rs.1,137 crore. Its net profit declined sharply by 34.2 per cent to Rs.453 crore from Rs.688 crore due to pricing pressures in generics business lower licensing income in biologics, planned shut down for plat and operating cost related to the Malaysia facility. The sales of small molecules declined by 8 per cent to Rs.1,508 crore from Rs.1,641 crore. However sales of biologics, branded formulations and research services increased by 10 per cent, 11, per cent and 19 per cent to Rs.770 crore, Rs.612 crore and Rs.1,423 crore respectively. Its net R&D expenditure touched to Rs.216 crore and gross R&D expenses reached at Rs.380 crore representing 14 per cent of operating revenue (excluding Syngene).