Biopharma major Biocon reported a 16% fall year on year in net profit for the quarter ended December 31, resulting from a sharp slowdown in licensing income. PAT was down to R85 crore against R101 crore in the corresponding quarter last fiscal, while earnings per share fell to R4.20 from R5.
Revenues registered a marginal growth of 3% to reach R532 crore against R519 crore a year ago. Net sales were up by 1% to R517 crore. Ebitda also took a beating, falling by 17% year on year to R142 crore, with margins of 27%, compared with R171 crore.
?As I have frequently stated, licensing income is a timing issue, and subject to periodic variability. Licensing income was sharply down from the exceptional levels recorded last fiscal, which resulted in flat earnings overall,? said Kiran Mazumdar-Shaw, chairman and managing director, Biocon.
?Without this element, we delivered a top line growth of 50%, and PAT growth of 29% for the nine month period,? she added. Markets reacted poorly to the company?s performance, with the stock falling by 3.25% to close at R266.10 on Wednesday.
According to Mazumdar-Shaw, in the same quarter last fiscal, Bicon registered a ?one-off element of R58 crore in licensing income?, whereas this year, R3 crore in licensing income was registered towards PAT. ?Next quarter should see an improvement sequentially, and considering our order books are full, the year should end on a positive note,? she told FE.
Income from the group?s total bio-pharmaceutical business, which contributes to over 80% of total revenues, fell by 6% y-o-y. Of the two verticals in this division, branded formulations grew by 49% y-o-y to R70 crore, while income from bio-pharmaceuticals tumbled by 13% to R335 crore. Biocon?s contract research division grew by 42%.
?We have seen exceptional growth in our research services business, and the branded formulations vertical reflects our strategy to move up the value chain. Our focus on emerging markets is also enabling us to realise a greater potential for our APIs and insulin,? she said.
Emerging markets contributed to over 50% of Biocon?s revenues. Biocon develops and outlicenses insulin products to the world?s largest drugmaker Pfizer for global sales.
