Biocon Q2 results: Consolidated net profit falls 66% to Rs 47 crore, revenue rises 26%

Sequentially,Biocon's net profit slumped 67 percent from Rs 144 crore in the June quarter (Q1FY22).

Drugmaker Biocon Ltd on November 14 reported a 66 percent slump in consolidated net profit at Rs 46.9 crore for the quarter ended September 30, 2022. The Kiran Muzumdar-Shaw-led company had posted a net profit of Rs 138 crore in the year-ago period.

Sequentially, the company's profit slumped 67 percent from Rs 144 crore in the June quarter (Q1FY22).

The profit after tax for the quarter under review was impacted by Biocon's decision to adopt the new tax regime notified u/s 115BAA of the Income Tax Act, 1961. Consequently, the company has written off a Minimum Alternate Tax (MAT) balance of Rs 107 crore in the current financial results, which can no longer be carried forward, it said in a regulatory filing. "Further, all existing deferred tax balances in Biocon Limited have also been remeasured using the reduced income tax rates expected to be applied under the new regime," it added.

Revenue from operations increased 26 percent to Rs 2,320 crore in the said quarter as against Rs 1,840 crore in the same quarter last fiscal.

Further, Biocon's core earnings before interest, taxes, depreciation and amortization (EBITDA) was up by 34 percent at Rs 816 crore, representing healthy core operating margins of 35 percent versus 33 percent in the same quarter last year, it added.

In segment-wise revenue, Biocon's generics registered an 18 percent rise at Rs 623 crore, while Biosimilars - Biocon Biologics Limited saw a 34 percent year-on-year increase at Rs 997 crore. Biocon Biologics contributes 42 percent to the overall Biocon Revenue.

Its research services, Syngene, reported a revenue increase of 26 percent YoY at Rs 768 crore in the September quarter.

Also, the company's gross R&D spend grew 52 percent to Rs 252 crore, while it also added that its 2022 ESG score has improved to 52.

Commenting on the quarterly financial results, Kiran Mazumdar-Shaw, Executive Chairperson, Biocon and Biocon Biologics, said, "We have delivered a resilient performance in H1FY23, with all segments delivering strong revenue growth. We expect to consolidate on this performance in the second half of FY23. Enhanced capacities and new launches will drive growth for our API and Generic Formulations business, while continued business momentum should help Syngene achieve its guidance for the full year."

"The consolidation of Viatris’ global biosimilars business and the strategic vaccines alliance with Serum Institute will add to the growth of the Biosimilars business in H2FY23. We have secured necessary financing and obtained relevant approvals for the Viatris transaction, which is expected to close shortly," Mazumdar-Shaw added.

Moreover, the company has also informed that its board has appointed Peter Bains as Additional Director (Category - Independent) to its Board, subject to the completion of necessary formalities under the Companies Act.

Bains has over three decades of experience in biopharmaceuticals, with a successful track record of building brands, businesses, teams and companies. He currently serves as a Non-Executive Director on the Board of Indivior PLC, a UK FTSE-listed pharmaceuticals company, as well as MiNA Therapeutics and Apterna, both privately held UK biotech companies, Biocon noted.

Shares of Biocon on November 14 closed nearly 2 percent higher at Rs 286.40 apiece on BSE against its previous close at Rs 280.95.