Biocon slips after weak Q2 results

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Biocon fell 3% to Rs 354.65 at 10:49 IST on BSE after consolidated net profit fell 53.10% to Rs 68.80 crore on 2.41% increase in net sales to Rs 968.60 crore in Q2 September 2017 over Q2 September 2016.

The result was announced after market hours yesterday, 26 October 2017.

Meanwhile, the S&P BSE Sensex was up 68.96 points, or 0.21% to 33,216.09.

On the BSE, 2.12 lakh shares were traded in the counter so far, compared with average daily volumes of 2.99 lakh shares in the past one quarter. The stock had hit a high of Rs 357.30 and a low of Rs 343.50 so far during the day. The stock hit a record high of Rs 424.15 on 19 July 2017. The stock hit a 52-week low of Rs 424.15 on 19 July 2017.

The stock had outperformed the market over the past one month till 26 October 2017, rising 8.01% compared with 6.38% rise in the Sensex. The scrip had underperformed the market in past one quarter, falling 6.29% as against Sensex's 2.59% rise. The scrip had outperformed the market in past one year, rising 19.28% as against Sensex's 18.74% rise.

The large-cap company has equity capital of Rs 300 crore. Face value per share is Rs 5.

Biocon's consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) fell 16% to Rs 233 crore in Q2 September 2017 over Q2 September 2016.

Commenting on the quarterly performance and highlights, chairperson and managing director Kiran Mazumdar-Shaw stated that while the company is pleased with the growth recovery of its research services (Syngene) and branded formulations business segments in the July - September quarter, its overall earnings performance was muted on account of several specific factors. In particular, plant modifications undertaken to comply with regulatory requirements led to production disruptions. Additionally, the company experienced regulatory and tender delays in some emerging markets for its biosimilars business. Malaysia facility costs and pricing pressures in APIs business continue to weigh on its P&L. The company expects these headwinds to ease by the end of this fiscal.

Biocon is India's largest and fully-integrated, innovation-led biopharmaceutical company. As an emerging global biopharmaceutical enterprise serving customers in over 120 countries, it is committed to reduce therapy costs of chronic diseases like autoimmune, diabetes, and cancer.

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