Biocon Q2 Net flat at Rs 102 cr on higher expenses

Biotechnology major Biocon's consolidated net profit remained flat at Rs 102.05 crore for the quarter ended September 30, mainly on account of higher expenses, capacity constraints and challenges in specific export markets.
The company had posted a net profit at Rs 102.15 crore for the corresponding period of the previous fiscal, Biocon said in a statement today.
Consolidated total income from operations of the company, however, rose to Rs 757.59 crore for the quarter under consideration as against Rs 740.81 crore for the same period a year ago, it added.
Commenting on the quarterly performance, Biocon Chairman and Managing Director Kiran Mazumdar-Shaw said: "The growth of our core biopharma business this quarter has been muted largely due to capacity constraints and geo-political challenges in the Middle East."

The cost of materials consumed during the quarter increased to Rs 330.95 crore as against Rs 279.71 crore in the same period last year.
The employee benefit scheme expenses also rose to Rs 135.38 crore for the quarter under consideration as compared to Rs 113.10 crore during the year-ago period.

However, clinical progress in the company's key global programmes for generic Insulin Glargine and Trastuzumab is indicative of the value accretion that is realisable in the foreseeable future, she added.
The biopharma segment recorded revenues of Rs 442 crore in the second quarter of this fiscal, Biocon said.
The branded formulations business recorded revenues of Rs 116 crore for the quarter and saw a growth of 17 per cent year on year. The company's research services segment's revenues stood at Rs 192 crore, it added.

"Whilst we continue to invest in R&D and capacity building for our insulins and antibodies portfolio, we expect branded formulations and research services businesses to drive growth in the interim," Mazumdar-Shaw said.
Shares of Biocon were today trading at Rs 474.20 per scrip in the afternoon trade on the BSE, down 1.16 per cent from its previous close.