Biocon Q3 PAT up 4.7% to Rs 90 cr

Biocon Q3 PAT up 4.7% to Rs 90 cr

Biocon Q3 PAT up 4.7% to Rs 90 cr

 Propelled by strong growth in research services and the branded formulations business, biotech company Biocon beat expectations with 4.7 per cent increase in net profit for the quarter ending September 30, sending its shares up over 3 per cent on Wednesday.

The Bangalore-based company said consolidated net profit rose to Rs 90 crore in the fiscal second quarter ended September from Rs 860 crore a year earlier. Revenues rose 19.3 per cent to Rs 642 crore.

Biocon also said GE Capital Corp would pick up 7.7 per cent stake in the Indian drugmaker's research services unit Syngene for Rs 125 crore. "This (investment) takes us closer to our commitment of taking Syngene through an IPO (initial public offer) at the most opportune time," Biocon Chairman and Managing Director Kiran Mazumdar-Shaw said in a statement.

The company’s current market capitalisation stands at Rs 5,311 crore.

Mazumdar-Shaw said, “We continue to deliver good performance across verticals this fiscal. At the half year, we have seen a 23 per cent year-on-year increase in revenues attributable to both volume growth as well as better export realization on account of a depreciating rupee.”

She said that the APIs and biosimilar insulins businesses have seen significant business expansion in emerging markets.

Branded Formulations and Research Services continued to deliver strong growth, which R&D expenditure, which has risen significantly this fiscal, stood at Rs 79 crores for the first half of 2012, a 54% increase over the same period last fiscal.

The drugmaker also announced positive results from the global phase-III trials of its recombinant human insulin for type-1 diabetes mellitus patients.

Mazumdar-Shaw noted that R&D remains a key investment to drive exponential growth in the future. Imported raw materials, power and personnel costs also increased by 27% during the September quarter.

Biocon’s share price on the Bombay Stock Exchange closed up 2.55 per cent at Rs 265.55 at the close of trading hours on Wednesday.