Biocon's Q4 revenue hit by Covid-19 crisis, pre-tax profit declines 28%

Biotechnology major Biocon on Thursday posted a profit before tax (PBT) of Rs 204 crore for the fourth quarter of FY20, a decline of 28.2 per cent when compared with the corresponding quarter of previous financial year.

The net profit for the period declined 42.2 per cent to Rs 123 crore on y-o-y basis, according to a BSE filing by the company. The company’s revenue however saw a muted growth of 6 per cent as compared to Q4 of FY19.

“Q4FY20 witnessed a muted growth of 6 per cent with revenues at Rs 1,644 crore due to operational challenges including one-time Covid-19 related impact on our Biologics business. Small Molecules and Research Services businesses, however, delivered robust growth of 15 per cent and 14 per cent, respectively,” said Kiran Mazumdar-Shaw, executive chairperson, Biocon.

The Biologics segment reported a de-growth of 21 per cent during the quarter after reporting three consecutive quarters of robust performance. 

“We believe that the Biologics business will recover in Q1FY21 and fully normalise from Q2FY21,” Shaw added.

Biocon's small molecules segment crossed an annual revenue milestone of Rs 2,000 crore in the quarter.

The company reported an Ebidta margin of 23 per cent for the quarter.

In its response against coronavirus, Biocon has received permission from Indian regulator DCGI for conducting clinical trials to study Itolizumab in treating moderate to severe patients with Covid-19 complications in India. It’s research services arm Syngene has repurposed one of its laboratories to conduct RT-PCR tests for Covid-19 offering free testing services to city hospitals and has with Pune-based Mylab Discovery Solutions to supply reagents for use in its testing diagnostic kits.