Biocon reports 28% drop in Q1 PAT

The biopharmaceuticals company's consolidated net profit fell 28% to Rs 149 crore on a 15% rise in revenue from operations to Rs 1671 crore in Q1 FY21 over Q1 FY20.

Income from generics business increased 16% YoY to Rs 599 crore while that of the biosimilars business jumped 19% YoY to Rs 692 crore in Q1 June 2020. However, the income from research services remained flat at Rs 422 crore during the quarter due to slowdown of operations impacted by the COVID-19 crisis.

R&D expenses rose 35% to Rs 107 crore in Q1 June 2020 over Q1 June 2019.

EBITDA declined 6% to Rs 432 crore in Q1 FY21 from Rs 462 crore in Q1 FY20. EBITDA margin was at 26% as on 30 June 2020 as against 31% as on 30 June 2019.

Profit before tax in the first quarter stood at Rs 252 crore, down by 21% from Rs 321 crore in the same period last year.

Commenting on the results, Kiran Mazumdar-Shaw, executive chairperson, said: "Profitability for the quarter was impacted due to higher R&D spend, lower profit share in the Biosimilars business, and lower profitability in the Research Services segment."

Commenting on the performance, Siddharth Mittal, CEO & managing director, Biocon, said, The intensified focus on our Generics business over the past year is showing results. The performance was led by the Generic Formulations business, which reported robust growth in the US. We also witnessed good traction in our key APIs during the quarter. Additionally, we expanded the commercial footprint of our Generics Formulations business by partnering with DKSH to commercialize seven of Biocon Pharma's generic formulations in Singapore and Thailand.

Biocon is a fully integrated, innovation-led global biopharmaceuticals company.

The scrip was up 0.63% to Rs 433 on the BSE. It has traded in the range of 426 and 434.75 so far during the day.

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