Amid Covid, no dividend in FY21 for shareholders: Biocon

Biocon Limited posted a 4% year-on-year decline in net profits

Bengaluru-based pharmaceutical company Biocon Limited, in a statement on its Q42021 performance, stated that the company will not be giving any dividend to its shareholders.

In the statement, the pharma major said, “On account of the uncertainty created by an unprecedented second wave of the Covid-19 pandemic and the continued investments in R&D and Capex, the Board of Directors has decided it would not be appropriate to declare a dividend for FY21.”

Biocon Limited posted a 4% decline in net profits from Rs 789 crore in FY20 to Rs 754 crore in FY21. However, the company’s consolidated revenue grew 14% from Rs 6,462 crore in FY20 to Rs 7,360 crore in FY21.

A major in the biologics space, the company has grown 21% from Rs 2,315 crore in FY20 to Rs 2,800 crore in FY21. While there has been significant growth in the biologics space year-on-year, comparing revenues in Q4 with Q3, there is a decline in Q4. While the company made Rs 769 crore in Q3 FY21 from biosimilars, it made Rs 664 crore in Q4 FY21.

However, as compared to Q4 of FY20, the company marked an increase of 53% in the biosimilar space from Rs 433 crore to Rs 664 crore in Q4 FY21. On the other hand, its generic business has grown 6% over the last year and the research segment 9%.