Biocon net down 53% in Q2

Bengaluru, Oct 26 (IANS) Biotechnology major Biocon Ltd on Thursday reported Rs 69 crore consolidated net profit for the second quarter of fiscal 2017-18, a 53 per cent decline from Rs 147 crore in the same period last year.

In a regulatory filing on the BSE, the city-based drug maker said consolidated revenue from operations marginally grew 2 per cent to Rs 969 crore in the quarter under review from Rs 955 crore in the like period year ago.

Sequentially too, net income declined 15 per cent from Rs 81 crore while revenue increased a modest 4 per cent from Rs 934 crore quarter ago.

Earnings before interest, tax, depreciation and amortisation (Ebitda) also declined 16 per cent annually to Rs 233 crore for Q2 from Rs 278 crore last year and down five per cent from Rs 246 crore last quarter.

Research and Development expense declined 17 per cent annually to Rs 93 crore for Q2 from Rs 113 crore in same quarter last year.

"With the growth recovery of our research services (Syngene) and branded formulations business segments, our earnings performance was, however, muted due to multiple factors," said Biocon Chairperson Kiran Mazumdar-Shaw in a statement.

Plant modifications to comply with regulations disrupted production, while regulatory and tender delays in some emerging markets for biosimilars business also impacted operations.

"Malaysia facility costs and pricing pressures in our APIs (Active Pharmaceutical Ingredients) business continue to weigh on our P&L (Profit & Loss). We expect the headwinds to ease by this fiscal-end."

The company has submitted its insulin (Glargine) dossier to the US Federal Drug Administration.

Licensing income for the quarter was Rs 1 crore as against Rs 33 crore in the like period year ago.

"The operating margins were impacted due to inclusion of fixed and operating costs related to the Malaysia facility and reduced gross margins due to pricing pressure in key markets," said the statement.

The company's API unit at Vishakapatnam in Andhra Pradesh completed a US Federal Drug Administration audit without observations.

"Our generic formulations business debuted in the US with Rosuvastatin Calcium tablets during the quarter. We also commissioned our first solid oral dosage forms manufacturing facility in Q2," said Shaw.

The company's scrip of Rs 5 face value quoted at Rs 365.60 per share at the end of Thursday's trading on the BSE as against Wednesday's closing rate of Rs 366.75 and opening price of Rs 370, after touching high of Rs 371.75 and low of Rs 355.50 during the intra-day trading sessions.

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