Biocon shares jump 7% on strong Q4, dividend declaration

Shares of Biocon soared over 7% in early trade on Wednesday as investors cheered the biopharmaceutical company’s fourth-quarter earnings that topped Street estimates. The Kiran Mazumdar-Shaw-led company also announced a final dividend of ₹1.50 per equity share of face value of ₹5 each for the financial year ended March 31, 2023. In the past 12 months, the Bengaluru-based company declared an equity dividend amounting to ₹0.50 per share, while it paid 18 dividends since its listing in 2004.

Continuing its gaining streak for the second day, Biocon shares opened 6.2% higher at ₹257.35 against the previous closing price of ₹242.25 on the BSE. In the first two-hour of trade so far, the pharma heavyweight rose as much as 7.1% to hit a high of ₹259.50, while the market capitalisation climbed to ₹29,787 crore.

At the current levels, Biocon shares trade 25% lower than its 52-week high of ₹344 touched on June 10, 2022, while it is up 35% against its 52-week low of ₹191.60 hit on March 21, 2023. The midcap stock has delivered a negative return of 25% to its shareholders in the past 12 months, while it has lost 9% in the six-month period. In the past month, the counter has risen 10%, while it gained nearly 1% in a week.

In a late evening filing on Tuesday, Biocon said that it posted 31% growth in profit after tax (PAT) at ₹313 crore as against ₹239 crore in the same quarter last year. The revenues for this quarter jumped 57% to ₹3,774 crore compared with ₹2,409 crore in Q4 FY22. EBITDA for the quarter increased 75% to ₹1,152 crore, representing an EBITDA margin of 29% versus 27% in the same period last year.

For the entire year, net profit, before exceptional items, stood at ₹787 crore versus ₹722 crore in FY22. The revenues were up 38% YoY at ₹11,550 crore, while EBITDA for the year was up 32% YoY at ₹2,888 crore, with the margin at 25%.

“FY23 has been a transformational year led by the acquisition of our partnered biosimilars business from Viatris, which has significantly contributed to Biocon’s robust consolidated financials. Revenues grew 38% to ₹11,550 crore, EBITDA was at ₹2,888 Crore, reporting a 32% growth. Revenue growth was led by Biosimilars at 61%, Research Services at 23% and Generics at 13%. R&D Investments have nearly doubled to ₹1,119 crore, as we seek to drive future growth,” says Kiran Mazumdar-Shaw, executive chairperson, Biocon and Biocon Biologics.

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During the year, Serum Institute of Life Sciences (SILS) doubled its investment in Biocon Biologics (BBL) to $300 million as a part of the restructuring of its strategic alliance, through the conversion of its $150 million loan provided to Biocon Pharma into equity in BBL. This is in addition to the $150 million that SILS invested in BBL in November 2022.

The company also plans to raise ₹800 crore ($98 million) from Edelweiss Alternate Asset Advisors Ltd (EAAA) through the issuance of NCDs worth ₹500 crore by Biocon and CCDs worth ₹300 crore by Biocon Biologics.