Biocon net tanks 51% in Q1 at Rs 81 crore

Bengaluru-based bio-pharma major Biocon on Thursday reported a steep 51% year-on-year decline in net profit at Rs 81 crore for the first quarter ended June 30, 2017 compared with Rs 167 crore in the corresponding quarter last year.

The decline in profits is mainly attributed to higher staff costs and inclusion of operational and fixed costs related to Malaysia facility. The net profit margin also declined to 8% against 15% in the year ago quarter.

The company’s revenues witnessed a marginal decline of 4% at Rs 988 crore compared with Rs 1,033 crore in the first quarter last year due to the combined impact of a stronger rupee, GST and the one-time positive impact in Q1FY17 on account of the transition to IndAS. Its EBITDA declined 19% to Rs 246 crore during the quarter compared with Rs 304 crore in June quarter last year. The Core EBITDA margin was lower by 4 percentage at 29% from 33% a year ago. Interest and depreciation costs increased 60% to Rs 115 crore for the quarter, largely attributable to the Malaysia facility.

“Our Biologics business had a strong quarter led by insulins sales. Financial performance was muted largely due to a combination of factors such as weakening of US dollar, GST impact, and inclusion of operational and fixed costs of Malaysia,” Kiran Mazumdar-Shaw, CMD, Biocon said.

A major milestone during this quarter was the USFDA Oncologic Drugs Advisory Committee (ODAC) recommendation for approval of its biosimilar Trastuzumab. It also received regulatory approvals from the Indian regulator for biosimilar Bevacizumab.