Biocon Q3 net down to Rs 203 crore, impacted by R&D, tax

IANS-

Leading biotechnology company Biocon on Thursday reported a net profit of Rs 203 crore for the third quarter (October-December) of fiscal 2019-20, declining by 7 per cent compared to Rs 217 crore in the same quarter last year.

In a regulatory filing, Biocon said the net profit was impacted by higher research and development expenses and tax impact of an exceptional item.

“Net profit before exceptional item at Rs 225 crore reported a 6 per cent growth. EBITA at Rs 480 crore reported a growth of 18 per cent. Core margins were strong at 33 per cent with EBITDA margin of 27 per cent and net profit margin of 11 per cent,” Biocon Chairperson and Managing Director Kiran Mazumdar Shaw said in a statement.

The Bengaluru-headquartered company’s revenue from operations rose by 13 per cent to Rs 1,748 crore in Q3 from Rs 1,541 crore in the year ago quarter.

“We witnessed strong revenue growth of 14 per cent to Rs 1,748 crore in Q3, led by biologics, small molecules and research services businesses,” said Shaw.

In Q3, Shaw said Biocon managed to increase access to its biosimilars and commercialized Trastuzumab in the US, Canada and many European markets.

“Importantly, we have initiated value unlocking of our biosimilar business with dilution of a minority stake to True North for a primary equity investment of $75 million, which gives a pre-money equity evaluation of $3 billion for Biocon Biologics,” she said.

Shaw said the company will also raise further capital at an opportune time in the future.

In the quarter under review, gross research and development expenses rose by 46 per cent to Rs 155 crore from Rs 106 crore in the year ago quarter.

The board of directors of Biocon appointed Shaw as the Executive Chairman of the company for a period of five years, beginning from April 1, 2020.

Similarly, Siddarth Mittal’s designation has been changed from Joint Managing Director to Managing Director, effective from the same date while M. B. Chinappa hasA been appointed as the chief financial officer of Biocon Biologics, effective January 6.

Biocon’s generic formulation business crossed Rs 100 crore revenue in Q3.