Biocon shares down 5% on 30% dip in Q1 profit

Shares of Biocon Ltd were in focus on August 11, a day after the company reported a decline in the net profit in the April to June quarter by 30% to ₹101.4 crore as against ₹144.40 crore in the same period last year.

The share price of the biopharmaceutical company opened lower at ₹257.35, down 1.6%, as against the closing price of the previous session at ₹257.35 apiece on the BSE. At 11:45 am, the share price of Biocon was trading 0.84% to ₹259.35 in line with the broader market. At present, shares of the Bengaluru-based company are trading 18.4% lower than the 52-week high of ₹320, which the company touched on August 17 last year. The share price of the biopharmaceutical company is trading 36.06% higher than the 52-week low of ₹191.60 which the company touched on March 21 this year. During the session in early trade, the company’s market capitalisation stood at ₹31,257.62 crore with more than 5.10 lakh shares exchanging hands on the BSE as against the two-week average of two lakh shares.

"Our key biosimilars are gaining traction in both US and Europe with Fulphila becoming the leading biosimilar Pegfilgrastim in the US and biosimilar Glargine’s market share crossing the 12% mark. A higher new prescription share reflects the prescriber confidence in our portfolio and the overall improvement in the adoption of biosimilars," says Kiran Mazumdar-Shaw, executive chairperson, of Biocon and Biocon Biologics.

The company's revenue from operations during the quarter under review surged 60% to ₹3,423 crore as against ₹2,140 crore in the same period last year. The company's EBITDA (earnings before income, tax, depreciation and amortisation) stood at ₹808 crore, up 69%, as against ₹478 crore in the same period last year. The company's EBITDA margin stood at 23% in June quarter as against 22% in the same period last year. The company's core EBITDA margin stood at 28% in the June quarter as against 31% in the same period last year.

During the quarter under review, the company's net investment in R&D surged by 59.1% to ₹315 crore as against ₹198 crore in the June quarter.

"The generics business delivered a healthy 15% year-on-year revenue growth, driven by growth in our formulations business in the U.S. and new product launches in a few key MoW markets. We also saw a volume increase in immunosuppressant APIs. Our product pipeline continues to advance with an approval for Vigabatrin tablets and a tentative approval for Lenalidomide capsules in the U.S., and for Mycophenolic acid tablets in Europe. The positive outcome of the two U.S. FDA inspections at our Hyderabad API and Bengaluru OSD sites will help in accelerating new product approvals. We continue to make investments for future growth, with work having commenced on the expansion of our peptide and fermentation capacities in Bengaluru, with a timeline for completion in the second half of FY25,” says Siddharth Mittal, CEO & MD, Biocon Limited.