Biocon Q3 profits up 8% on expansion plans and exports

Written by fe Bureau | Bangalore | Updated: Jan 27 2013, 01:43am hrs
Biopharma firm Biocon posted a year-on-year increase of 8% in consolidated net profit for the quarter ended December on volume expansion, price increases and better export realisations. The company posted a profit of R92 crore compared to R85 crore last year. Sequentially, the firm's profit grew 2.2% from R90 crore.

The company posted a 23% increase in revenue to R635 crore as against R517 crore a year ago, backed by growth across verticals.

The margin of earnings before interest, taxes, depreciation and amortization (Ebitda) stood at 25%. The Biocon scrip closed at R267.60, up by 1.5% on the Bombay Stock Exchange on Friday.

This has been a very strong and robust quarter and it has seen very little licensing income contribute to profit at the bottomline, which means that our core businesses have delivered very strong results, said Kiran Mazumdar-Shaw, chairman and managing director, Biocon.

We have performed well across all our business verticals. We continue to gain share for Biosimilar Insulins in the rest-of-the-world markets which now accounts for a significant part of our business.

Revenue from Biocon's biggest vertical of biopharmaceuticals grew 22% year-over-year to R409 crore, while the contract research services revenue grew 27% to R140 crore.

The revenue from the India-focussed branded formulations business grew 19% year-on-year, but dipped by 5.49% sequentially. The company had received licencing income of R9 crore during the quarter and Biocon expects to conclude ongoing discussions for partnerships in its insulin analogs and recombinant insulin development programmes by the end of the fiscal.

Biocon, which expects to start production of its psoriasis drug Alzumab between July and September this year, said that it expects to recover its investments into the product with four years. The amount we spent on it (Itolizumab) is a little less than R100 crore in terms of India development and we are very confident we will recover it, said Mazumdar-Shaw.