Biocon shares slump over 4% as profit declines 42% in March quarter

Shares of Biocon Limited dipped 4.11 per cent to Rs 321.50 on the BSE on Friday after the biotechnology major's net profit declined 42.2 per cent year-on-year (YoY) to Rs 123 crore in the fourth quarter of FY20 (Q4FY20).

The firm's profit before tax (PBT) declined 28.2 per cent to Rs 204 crore during the quarter when compared with the corresponding quarter of previous financial year. The company’s revenue, however, saw a muted growth of 6 per cent as compared to Q4 of FY19, according to a BSE filing by the company.

“Q4FY20 witnessed a muted growth of 6 per cent with revenues at Rs 1,644 crore due to operational challenges including one-time Covid-19 related impact on our Biologics business. Small Molecules and Research Services businesses, however, delivered robust growth of 15 per cent and 14 per cent, respectively,” said Kiran Mazumdar-Shaw, executive chairperson, Biocon.

The company reported an Ebidta margin of 23 per cent for the quarter. Biocon's small molecules segment crossed an annual revenue milestone of Rs 2,000 crore in the quarter. The Biologics segment reported a de-growth of 21 per cent during the quarter after reporting three consecutive quarters of robust performance.

At 9:43 AM, the stock was down 3.49 per cent as compared to 0.47 per cent fall in S&P BSE Sensex. Around 64.7 lakh shares have changed hands on the NSE and BSE combined so far.