The Indian Wire » Business » Biopharma Co. Biocon Posts a Q4FY20 Profit fall of 42% at ₹123 Cr

Biopharma Co. Biocon Posts a Q4FY20 Profit fall of 42% at ₹123 Cr

KOLKATA: India-based biopharmaceutical company, Biocon posted a 42.3% year-on-year (YoY) fall in its net profut for the march-end quarter(Q4) of the last fiscal(FY2019-20). Its net profit stood at ₹123.4 Crore as opposed to ₹213.7 Crore in the same quarter of FY19. But, its consolidated profit for FY20 stood at ₹748 Crore. It was ₹905 crore for the same period year ago, Biocon said. Moreover, the total income of the company increased to ₹6,529 Crore for the fiscal year ended March 2020 as against ₹5,659 Crore for the same period year ago, it added.

Biocon’s regulatory filing also states that its revenue from operations was up 3% YoY amounting to ₹1,581 Crore against ₹1,528.8 Crore, in Q4 of FY19. Consolidated total income, last quarter, of the company also rose up by 6% to ₹1,644 Crore as against ₹1,557 Crore for the same period year ago, it added.

“Q4FY20 witnessed a muted growth of 6% with revenues at ₹1,644 Crore due to operational challenges including one-time COVID-19 related impact on our biologics business,” Kiran Mazumdar-Shaw, Executive Chairperson at Biocon, said.

Moreover, its EBITDA (earnings before interest, tax, depreciation and amortisation) fell by 11% YoY. Meanwhile, the EBITDA margin, itself, was down 500 bps (100 basis points = 1%) at 23% versus 28%, YoY. The EBITDA amounted to ₹382 Crore versus ₹431 Crore, last corresponding quarter.

The report also stated that the company’s R&D expenses increased by 36% YoY. It stood at ₹125 crore as against last corresponding quarter’s ₹92 crore. Meanwhile, its small molecules and research services businesses, however, delivered robust growth of 15% and 14%, respectively, she added.

“On a full-year basis, we reported a revenue growth of 15% led by a strong performance by biologics, which grew by 29%, small molecules by 18% and research services by 10%. We believe that the Biologics business will recover in Q1FY21 and fully normalise from Q2FY21,” Mazumdar-Shaw said.

Net profit, before the current crisis, had amounted upto ₹760 Crore, a growth of 4%, she added.

Additionally, Biocon’s board has approved the appointment of Indranil Sen, Vice President, Finance as an Interim CFO and Key Managerial Personnel of the company. This appointment is pursuant to the provisions of Section 203 of the Companies Act, 2013, effective from May 15, 2020.

In a post-earnings call, Kiran also said, “We are dealing with unprecedented challenges related to COVID-19 and as a science-led company we are engaged in several initiatives spanning diagnostic tests, vaccines and therapies towards combating COVID-19.”

After the release of this report, yesterday, Biocon’s share price closed at ₹323.50 on BSE. This price was down by 3.52% against its previous close.

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