Bio-pharmaceutical company Biocon Thursday beat analysts’ estimates posting a 47 percent jump in net profit at Rs 120 crore in the first quarter ended June 2018. The growth was led by strong performance of biologics and research services segments.
The profit was also helped by a low base in Q1FY18 due to supply chain disruption caused by GST rollout.
The company reported a net profit of Rs 81 crore in the year-ago period.
Total revenue for the quarter under review grew 21 percent to Rs 1,192 crore in the April-June period, Biocon said in a statement.
Analysts polled by Reuters estimate that Biocon's net profit will rise to Rs 116.9 crore and its revenue for the quarter will increase 27.3 percent on year to Rs 1,180.9 crore.
The gross spend on research and development declined 8 percent to Rs 88 crore on YoY basis.
The earnings before interest, tax, depreciation, and amortisation (EBITDA) stood at 26 percent for Q1FY19 compared to the previous year’s 25 percent.
“The approval and launch of our biosimilar Pegfilgrastim, Fulphila, in the US is a significant milestone for Biocon and sets the tone for the future success of our biosimilars business," Kiran Mazumdar-Shaw, Chairperson and Managing Director of Biocon.
"The cGMP approvals for our Drug Products manufacturing facility in Bengaluru by both the USFDA and EMA demonstrates our commitment to provide high-quality products to address the growing needs of patients for affordable biosimilars in these markets. These developments augur well for a strong financial performance in FY19,” Mazumdar-Shaw added.
The sales of small molecules or active pharmaceutical ingredient (API) business grew 10 percent to Rs 400 crore in Q1, led by sales of key APIs including immunosuppressants and generic formulations.
The company said the regulatory filings for key APIs in developed and emerging markets prepare the business for a better play, going forward.
Revenues from the biologics vertical, comprising Novel Biologics and Biosimilars, recorded 36 percent growth to Rs 250 crore driven by higher sales of biosimilar monoclonal antibodies (mAbs) in emerging markets, supported by insulins business.
The branded formulations business, which includes sales in India and UAE, reported a revenue of Rs 147 crore, a YoY growth of 13 percent driven by strong sales of key brands.
The Research Services business that’s housed under listed subsidiary Syngene registered a growth of 39 percent to Rs 406 crore, buoyed by the performance of discovery and development services for small molecules and continued traction in the biologics business.
Shares of Biocon rose 0.96 percent to close at Rs 559.10 on BSE, the benchmark Sensex gained 0.34 percent to end 36,984.64 points.