Biocon rallies 10% post Q1 results

The stock rallied 10% to Rs 613 on the BSE after the company reported 48% growth in consolidated net profit at Rs 1.2 billion in June quarter.

Shares of Biocon have rallied 10% to Rs 613 per share on the BSE after the company reported 48% growth in consolidated net profit at Rs 1.2 billion in June quarter (Q1FY19). The biopharmaceuticals company had profit of Rs 0.81 billion in the same quarter year ago.

The company’s revenue from operations grew 20% at Rs 11.24 billion against Rs 9.34 billion in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, taxes, depreciation and amortization) margin improved to 26% from 25% during the quarter.

The research services business through Syngene sustained its strong growth trajectory, reporting a revenue growth of 39% at Rs 4.06 billion, buoyed by the performance of discovery and development services for small molecules and continued traction in the biologics business. The analysts on an average had expected 10% YoY growth research services business.

“The cGMP approvals for the company’s drug products manufacturing facility in Bengaluru by both the U.S. FDA and EMA demonstrate our commitment to provide high quality products to address the growing needs of patients for affordable biosimilars in these markets. These developments augur well for a strong financial performance in FY19,” said Kiran Mazumdar-Shaw, chairperson & managing director, Biocon.

At 11:13 am; the stock was trading 9% higher at Rs 609 on the BSE, as compared to 0.87% rise in the S&P BSE Sensex. The trading volumes on the counter jumped more than three-fold with a combined 8.87 million equity shares changed hands on the NSE and BSE so far.