Biocon Q1 net profit drops 51.2% to Rs81.3 crore

Biocon Ltd has reported a Rs81.3 crore consolidated net profit for the quarter ended 31 June 2017, registering a 51 .2 per cent year-on-year decline in profit, compared to the year-ago quarter, on the back of a firming rupee..

Bengaluru-based Biocon, Asia's biggest biopharma company, said its sales for the April-June quarter were down 5.9 per cent at Rs933.7 crore on account of lower sales of small molecules and branded formulations.

The company's earnings before interest, tax, depreciation and amortization (Ebitda) were down 19 per cent at Rs246 crore largely on account of inclusion costs related to Malaysian facility, and higher employee expenses.

Sales were also affected due to destocking ahead of implementation of goods and services tax (GST), the company said.

Biocon's small molecules business was down 17 per cent at Rs363 crore, while branded formulations sales fell by an equal percentage to Rs130 crore.

However, biologics business grew 15 per cent to Rs184 crore and research services business, which is under its listed subsidiary Syngene International, grew 6 per cent to Rs291 crore.

''Our biologics business had a strong quarter led by insulins sales. Financial performance was muted largely due to a combination of factors: weakening of US dollar, GST impact, and inclusion of operational and fixed costs of Malaysia (manufacturing facility). Additionally, the YoY comparison was impacted by the one-time adjustment in Q1FY17 related to IndAS migration,'' chairperson and managing director Kiran Mazumdar-Shaw said in a press release.

''The outlook for FY18 remains cautious as much depends on regulatory approvals and tender outcomes for our biosimilars in key emerging markets. However, we will endeavour to maintain healthy core operating margins, going forward,'' she added.

Net spend on research and development (R&D) was Rs58 crore in the June quarter, 13 per cent higher than the same period last year.

Shares of Biocon ended 1.1 per cent lower at Rs399.10 on the BSE, although the company's results were declared after the closure of stock market trading hours.