Biocon hits record high on strong Q2 earnings

The stock up 4% to Rs 1,020 after the company posted 52% YoY jump in consolidated net profit at Rs 147 crore in Q2FY17.

Biocon hit a fresh record high of Rs 1,020, up 4% on BSE in early morning trade, after the company posted robust 52% year on year (YoY) jump in consolidated net profit at Rs 147 crore for the quarter ended September 30, 2016 (Q2FY17), led by the company’s biologics, small molecules businesses and Syngene. Analysts on an average had expected a profit of Rs 133 crore.

The biopharmaceuticals company had profit of Rs 97 crore in year ago quarter. Revenue rose 21% to Rs 992 crore during the quarter under review against Rs 819 crore in the corresponding quarter of previous fiscal.

EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved to 28% from 23% in previous year quarter.

“Our performance in Q2FY17 was led by strong growth across small molecules, biologics and research services. Expansion of our biologics footprint in emerging markets and licensing agreements boosted the revenue further. Our ready-to-use insulin Glargine pen launched in Japan has been well received which augurs well for this business,” said Chairperson and Managing Director, Kiran Mazumdar-Shaw.

“The acceptance of our proposed biosimilar Trastuzumab filing for review by EMA was a critical milestone this quarter. This is our second filing in EU. The tentative USFDA approval for Rosuvastatin calcium tablets heralds our entry into the US generics market,” Kiran Mazumdar-Shaw said.

At 10:02 am, the stock was up 3.7% at Rs 1,017 on BSE, against 0.42% decline in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 1.85 million shares changed hands on the BSE and NSE so far.