Biocon on Thursday posted a 19% sequential drop in net profit to touch R79 crore in the June quarter, as revenues from biopharmaceuticals dipped 14%. Biopharma constitutes Biocon?s largest business division. Biocon had posted a net profit of R98 crore in the March quarter.
The company?s share fell 4.98% to close at R238.60 on the Bombay Stock Exchange.
On a year-on-year basis, the company registered an increase of 13% in net profit for the quarter ending June, seeing growth across its business verticals. It had recorded a net profit of R70 crore in the corresponding quarter last year.
The company?s revenue grew 28% to R593 crore during the quarter against R464 crore a year ago. The Ebitda margin grew 5% year-on-year, but slipped 11% compared with the previous quarter, which the company attributed to higher spending on R&D. The Ebitda stood at R139 crore, or 23%, for the quarter. R&D expenditure of R36 crore during the quarter reflected an increase of 75% over the previous year.
?This increase arises from the enhanced spend on clinical development that is integral to delivering long-term sustainable growth,? said Kiran Mazumdar-Shaw, Biocon?s chairman and managing director. Part of the reason for lower Ebitda margin was a net forex loss of R5 crore and higher operating costs, she said.
Revenue from biopharmaceuticals grew 23% on a year-on-year basis to R368 crore while the India-focused branded formulations segment posted a revenue of R86 crore, an increase of 52% primarily driven by the oncology and diabetology divisions. Contract research services, meanwhile, grew 40% to R123 crore. On a sequential basis, revenue from the branded formulations and contract research segments grew 32% and 4%, respectively.
Biocon also said that it is applying for permission to market Itolizumab, its drug to treat psoriasis, having achieved positive 52-week results from phase-III trials. The company also announced that it has successfully completed a global phase-1 trial for its biosimilar Glargine, a development that paves the way for further trials necessary to enter markets such as the US and Europe.
