Biocon has announced its consolidated financial results for the fiscal second quarter ended September 30, 2019, which are as follows:
– In Q2FY20, the company’s consolidated revenue grew 17 per cent to Rs 1,611 crore from Rs 1,376 crore in Q2FY19.
– Net profit on a YoY basis was lower at Rs 216 crore (vs. Rs 355 crore in Q2FY19) due to an exceptional income of Rs 171 crore reported in Q2FY19.
– Net profit (excluding exceptional item) at Rs 189 crore (vs. Rs 184 crore in Q2FY19) reported a growth of three per cent.
This was impacted by an increase in the pharma major’s R&D expenses for enabling portfolio expansion and higher employee costs to support independent management of Small molecules, Biocon Biologics and novel molecules businesses under new organisational structure.
– Earnings before Interest, Depreciation and Amortization (EBITDA) increased 12 per cent to Rs 441 crore (vs. Rs 394 crore in Q2FY19).
– The consolidated EBITDA margin stood at of 27 per cent in Q2FY20 (vs. 29 per cent in Q2FY19).
– Core EBITDA margin for Q2FY20 (net of licensing, impact of forex and R&D) stood at 33% (vs. 33% in Q2FY19).
– EBITDA margin was impacted due to an increase in employee benefit expenses and other costs including higher marketing and profit share expenses, while core EBITDA margin was maintained at the same level as last year.
– Net profit margin (excluding exceptional item) stood at 12 per cent (vs. 13 per cent in Q2FY19).
– Net profit margin stood at 13 per cent (vs. 26 per cent in Q2FY19).
– Net R&D expenses for the quarter at Rs 104 crore was up by 36 per cent (vs. Rs 77 crore in Q2FY19).
– Gross R&D expenses were Rs 123 crore, up 39 per cent, (vs. Rs 88 crore in Q2FY19) corresponding to 11 per cent of the company’s revenue (excluding Syngene).
Commenting on the highlights, Kiran Mazumdar-Shaw, Chairperson and Managing Director, Biocon, stated, “A robust growth of 40 per cent by Biologics and 23 per cent by Small molecules, coupled with a steady performance by the research services business drove the consolidated revenue for the quarter to Rs 1,611 crore, reporting a growth of 17 per cent (YoY). We have increased investments in R&D for portfolio expansion as well as for high quality talent acquisition to enable independent management of Biocon Biologics, small molecules and novels businesses under the new organisational structure. These costs have led to net profit (adjusted for exceptional item) of Rs 189 crore, marginally higher than last year and positions us for a strong future. Reported net profit for Q2FY20 stood at Rs 216 crore which is lower on a YoY basis due to an exceptional income of Rs 171 crore reported in Q2FY19.
“For H1FY20, revenue grew by 21 per cent and EBITDA recorded a strong growth of 29 per cent over last year. We have entered into licensing and strategic partnerships across our small molecules and biosimilars businesses this quarter to deliver on our promise of providing affordable access to patients globally. We expect growth momentum to build further in the second half of FY20, driven by biosimilars launches in the US and generic formulations business, and expected additional capacities coming online later this fiscal.”