Biocon net down 39% for 2017-18

Biotechnology major Biocon Ltd has reported Rs 372 crore consolidated net profit for fiscal 2017-18, a 39 per cent decline from Rs 612 crore in fiscal 2016-17.

In a regulatory filing on the BSE late on Thursday, the city-based drug maker said consolidated revenue from operations, however, grew 5 per cent annually to Rs 4,130 crore in the fiscal under review (FY 2018) from Rs 3,922 crore in FY 2017.

Net profit for the fourth quarter was 2 per cent up sequentially to Rs 130 crore from Rs 127 crore quarter ago but revenue was up 26 per cent to Rs 1,170 crore from Rs 931 crore quarter ago.

Earnings before interest, tax and depreciation (Ebitda) for the fiscal declined 9 per cent to Rs 1,035 crore from Rs 1,137 crore year ago but up 30 per cent sequentially for the quarter to Rs 300 crore from Rs 231 crore quarter ago.

"We concluded the year with a strong revenue growth of 26 per cent in fourth quarter, led by biologics and research services businesses, which grew 47 per cent and 45 per cent," said Biocon Chairperson Kiran Mazumdar-Shaw in a statement here.

The company's traditional small molecules and branded formulations businesses also turned positive in the quarter.

"We crossed a key milestone when our Insulin Glargine Areceived regulatory approvals in Europe and Australia. Our biosimilar Trastuzumab also got approval in Turkey," she said.

On the muted performance for the fiscal, Shaw said it was due to pricing challenges in the generics business and a planned plant shut down for re-qualification and lower licensing income in the biologics business.

"Operational expenses related to our Malaysia facility impacted the bottom line for the fiscal. A positive quarter, however, is indicative of a normalised business trend."

Recent approvals of company's biosimilars along with strong performance of its Syngene are expected to impact the overall performance in 2018-19.

The company's blue-chip scrip of Rs 5 face value, however, lost Rs 6.50 per share on the BSE to trade at Rs 656.75 in the post-noon session as against Thursday's closing price of Rs 663.75 and opening price Rs 668.

--IANS

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