Biocon Q2 revenue up 3%

Biocon Ltd, Asia’s premier biopharmaceuticals company, today announced its consolidated financial results for the fiscal second quarter ended on September 30th, 2017.

Chairperson and Managing Director Kiran Mazumda-Shaw stated: “Whilst we are pleased with the growth recovery of our research services (Syngene) and branded formulations business segments in the July – September quarter, our overall earnings performance was muted on account of several specific factors. In particular, plant modifications undertaken to comply with regulatory requirements led to production disruptions. Additionally, we experienced regulatory and tender delays in some emerging markets for our biosimilars business. Malaysia facility costs and pricing pressures in our APIs business continue to weigh on our P&L. We expect these headwinds to ease by the end of this fiscal.”

Total Revenues for Q2FY18 stood at Rs 1019 Crore, up 3% YoY. Revenues from Operations grew 2% YoY to Rs 969 Crore, despite a drop in licensing income this quarter. The Licensing Income for the quarter stood at Rs 1 Cr as compared to Rs 33 Crore in the comparable period last year. Other Income in Q2FY18 stood at Rs 50 Crore. Net R&D Expenses at Rs 54 Crore corresponds to 9% of our revenue (ex-Syngene). Gross R&D Spends for Q2FY18 stood at Rs 93 Crore, which is line with our commitment to R&D.

The company reported an EBITDA of Rs 233 Crore, with an EBITDA margin of 23% for Q2FY18. The operating margins were largely impacted due to inclusion of fixed and operating costs related to the Malaysia facility and reduced gross margins due to pricing pressure in key markets. Reported Net Profit for the quarter was Rs 69 Crore, which represents a Net Profit margin of 7%.