Biocon Q4 net dips 62% on MTM losses

Biotechnology firm Biocon today posted a consolidated net profit of Rs 24.88 crore for the quarter ended March 31, 2009, nearly a 62% decline over the same period a year ago, largely due to losses on account of aligning asset prices to market value.      

Commenting on the results, Biocon Chairman and Managing Director Kiran Mazumdar Shaw said : "(The) Fiscal year '09 has been one of our most challenging years wherein foreign currency volatility made it difficult to manage a sharply depreciating rupee resulting in large MTM losses."      

The company had a net profit of Rs 65.30 crore in the quarter ended March 31, 2008.      

The consolidated total income of Biocon increased to Rs 486.56 crore for the fourth quarter ended March 31, 2009, from Rs 279.22 crore a year ago, Biocon said in a filing to the Bombay Stock Exchange.      

"Consolidated FY'09 earnings have also been burdened with the impact of added depreciation of Rs 16 crore reflecting capital investments incurred to support future growth," the company said.      

Biocon added that the "unpredictable rupee depreciation induced by the global economic crisis has adversely impacted consolidated FY'09 earnings, wherein losses of Rs 147 crore on account of MTM were provided."

For the year ended March 31, 2009, the consolidated net profit stood at Rs 93.12 crore as compared to Rs 463.90 crore in Q4 FY'08. Total income increased to Rs 1,673.22 crore in the March quarter of FY'09 from Rs 1,090.20 crore in the year ago period.      

The company declared a 60% dividend or Rs 3 per share subject to shareholders approval.      

Going forward, Shaw said the company's new hedging strategy would be able to address the years ahead with a sense of confidence and resilience.      

"Our branded formulations business under our healthcare umbrella has made rapid strides in garnering market share for our key brands in cardiology, diabetology, nephrology and oncology. We see this as being a high growth segment in our business strategy going ahead," she added.      

On a standalone basis, Biocon posted a net profit of Rs 24.14 crore for the quarter ended March 31, 2009, as against Rs 62.03 crore a year ago. Total income rose to Rs 239.84 crore in the March quarter of FY'09 from Rs 236.71 crore last year.      

For the year ended March 31, 2009, the company reported a net profit of Rs 111.81 crore as compared to Rs 434.94 crore a year ago.  The total income increased to Rs 987.12 crore during the period from Rs 929.21 crore a year ago.      

Shares of the company were trading at Rs 148.65, up 1.85% on BSE.